Economists also hail the likes of Apple's wildly popular iPhone as proof that America is still in the world's technological forefront. At first glance, it appears that this claim is valid. After all, the iPhone is a high-tech marvel. And it is in heavy demand, worldwide.
The problem is: is the iPhone really even an "American" product?
Yes, it is sold by Apple, an American company. Yes, Apple came up with the concept. And yes, Apple does all the marketing.
But who really manufactures the iPhone? If you said, "China," you're only partly right.
The fact is the real heavy lifting and the technological wizardry that makes the iPhone possible comes from Japan (and to a lesser extent, Germany). This shouldn't really be surprising: virtually all of the world's most advanced manufacturing takes place in either Japan or Germany these days.
China does have a high-profile role in the building of the iPhone in that Foxconn, the Taiwanese-owned assembler of the iPhone, has captured a lot of media publicity over the harsh working conditions of its workers in mainland China. By contrast, Germany and Japan's vastly more important role in the iPhone's production is virtually invisible.
But it's important to note that China's only role is the assembly of the iPhone. (Assembly is by far the least sophisticated part of the modern manufacturing process).
The real high-tech manufacturing heavy lifting is done mostly by Japan. That shouldn't be surprising: Japan has long completely monopolized the making of the key, crucial components at the heart of all the world's smart phones.
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