Is the iPod a U.S. product?
Interesting piece in the Times about the sources of the 451 parts of the iPod. Three researchers from UC-Irvine analyze the device, and conclude, basically, that the iPod can be rightly called a U.S. product.
For example, the hard drive is made by a Japanese company, Toshiba, by workers in China and the Philippines.
However, more profit goes to Apple and its designers here in the United States than to any single component manufacturer. And further segments of the cost can be attributed to distribution and retail costs, which benefit U.S. workers when sold in the U.S.
Ultimately, the researchers argue, more than half of the cost of the 30GB video iPod ($163 of $299) goes to U.S. companies and workers.
However, the authors failed to account for $110 of the cost! While I'm sure it's difficult to pin down specific countries, this omission detracts from their argument. It's not a barn-door-sized hole, as U.S. costs are still in the majority, but still: who is acquiring the $110?
Anyway, I'm not sure how products like these figure into the gross export and/or gross import segments of GDP calculations, but measuring the actual production of countries is getting a bit more complicated. The article illustrates this conundrum well.
The traditional measures behind "Made in..." tags might not be relevant these days.
For example, the hard drive is made by a Japanese company, Toshiba, by workers in China and the Philippines.
However, more profit goes to Apple and its designers here in the United States than to any single component manufacturer. And further segments of the cost can be attributed to distribution and retail costs, which benefit U.S. workers when sold in the U.S.
Ultimately, the researchers argue, more than half of the cost of the 30GB video iPod ($163 of $299) goes to U.S. companies and workers.
However, the authors failed to account for $110 of the cost! While I'm sure it's difficult to pin down specific countries, this omission detracts from their argument. It's not a barn-door-sized hole, as U.S. costs are still in the majority, but still: who is acquiring the $110?
Anyway, I'm not sure how products like these figure into the gross export and/or gross import segments of GDP calculations, but measuring the actual production of countries is getting a bit more complicated. The article illustrates this conundrum well.
The traditional measures behind "Made in..." tags might not be relevant these days.
posted by bp at
4:09 PM
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