Table 6-B
Value chain of Apple iPad, by location and activity: 2010
Characteristic   Activity   Location Amount/cost (dollars) Share of retail price (%)
Distribution and retail   Manufacturer's suggested retail price   Worldwide 499 100.0
  Distribution   Worldwide 75 15.0
  Wholesale price (received by Apple)   United States 424 85.0
Value capture   Total value capture     238 47.7
  U.S. total   United States 162 32.5
  Design/marketing   Apple 150 30.1
  Manufacturing of components   U.S. suppliers 12 2.4
  Manufacturing of components   Japan 7 1.4
  Manufacturing of components   South Korea 34 6.8
  Manufacturing of components   Taiwan 7 1.4
  Manufacturing of components   EU 1 0.2
  Manufacturing of components   Unidentified 27 5.4
Direct labor   Total direct labor     33 6.6
  Labor to manufacture components   Unidentified 25 5.0
  Labor for final assembly   China 8 1.6
Inputs   Nonlabor costs   Worldwide 154 30.9

EU = European Union

NOTES: iPad is configured with 16GB of memory and no cellular access. Value added is amount contributed by country, firm, or other entity to value of good or service and excludes purchases of domestic and imported materials and inputs. Value capture is value added excluding the cost of direct labor, which is the same as gross profit. Detail may not add to total due to rounding.

SOURCE: Linden G, Kraemer KL, Dedrick J. Who profits from innovation in global value chains? Estimates for the iPhone and iPad, Personal Computing Center, University of California–Irvine (2011), unpublished manuscript dated June 15.

Science and Engineering Indicators 2012