Greg Linden

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The components of an iPhone add up to a different cost than the phone itself. Poravute Siriphiroon/Shutterstock.com

The guts of an Apple iPhone show exactly what Trump gets wrong about trade

Jason Dedrick, Syracuse University; Greg Linden, University of California, Berkeley, and Kenneth L. Kraemer, University of California, Irvine

Trump believes the money Americans spend on Chinese imports like the iPhone goes straight into China’s pockets. In reality, China gets very little value from it.
CEO Tim Cook built Apple’s vast supply chain, which stretches from China to Europe. Reuters/John Gress

We estimate China only makes $8.46 from an iPhone – and that’s why Trump’s trade war is futile

Jason Dedrick, Syracuse University; Greg Linden, University of California, Berkeley, and Kenneth L. Kraemer, University of California, Irvine

The president launched a trade war largely on the premise of a massive trade deficit with China. A closer look at the iPhone shows why he’s wrong.

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