With $300 billion plus market cap, Apple appears to be a positive example for corporate America.
But according to Business Insider, Apple is a major contributor to the American trade deficit with China.
Back in 2004, WSJ's Andy Kessler noted the iPod attributed to a $1.5 billion trade deficit with China,despite adding $16 billion in market cap to the company.
In 2011, WSJ is revisiting the same issue, even further.
Though an iPhone costs around $180 wholesale, the value coming from China, in assembly, is about $6.50 per unit.
Yet the entire cost of the iPhone gets counted in the trade deficit with China. As a result, the iPhone alone added $2 billion to the US' trade deficit with China.
Nobody would think the trade wasn't worth it, and nobody would suggest that on-net wasn't good for American economy.
It's not for us to say there aren't issues with currency manipulation from China or that American manufacturing can't be more competitive.
But if you suspect the US trade deficit with China represents some huge problem, then you need to delve deeper into the statistics.
Source - Business Insider
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