The rear cover of the iPhone tells you it is designed in California and assembled in China. The phone sells, in the absence of carrier subsidy, for about $700. Purchased components ? clever pieces of design such as the tiny flash drive and the small but high-performing camera ? may account for as much as $200 of this. The largest supplier of parts is Samsung, Apple?s principal rival in the smartphone market. ?Assembled in China? costs about $20. The balance represents the return to ?designed in California?, which is why Apple is such a profitable company.
Source: http://justin-singer.com/post/35855718858
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