iPhones are hardly 'Made in China'

A recent Wall Street Journal article discusses how global trade is much more complex than our simple trade balance suggests.

iPhones are in fact assembled in China. The wholesale price of an iPhone is $178.96. When a single iPhone is shipped from the manufacturing facilities in China to the United States, that entire $178.96 is considered an import from China and is therefore considered a debit for the Unites States when it comes to our trade balance with China.

The article points out (and gives numbers) that the various components of the iPhone are actually produced all over the world, including computer chips produced in the United States by Broadcom. Japan actually produces the most significant portion of the iPhone: 34% of its wholesale value. Then comes Germany (17%), South Korea (13%), and the United States (6%). China comes in 5th place at 3.4%.

Here is the article:
Not really 'Made in China'. Wall Street Journal, December 16, 2010.