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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

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

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.
Apple CEO Tim Cook speaks about the new iPhone 7 during the Apple launch event at the Bill Graham Civic Auditorium in San Francisco, California. Monica Davey/AAP

Apple is losing the innovation game, it can’t trap users anymore

The Apple business model is failing. Its ability to keep customers confined to the company's ecosystem cannot be sustained because of the rise of apps and other online platforms.

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