2026-03-10T19:06:31Z https://grips.repo.nii.ac.jp/oai

oai:grips.repo.nii.ac.jp:00001634 2023-11-20T08:43:28Z 1:93

Domestic Value Added of Chinese Brand Mobile Phones XING, Yuqing HE, Yuzhen GVCs mobile phones value added China https://www.grips.ac.jp/list/jp/facultyinfo/xing_yuqing/ In this paper, we evaluate the domestic value added of Chinese brand mobile phones using the teardown data of two sample phones: Xiaomi MIX 2 and OPPO R11s. For calculation of the distribution of value added by country, we adopt two benchmarks: production cost and retail price. In terms of the production cost of the sample phones, which consists of bill of materials, manufacturing cost and royalty, Chinese domestic value added embedded in the MIX 2 is 15.4% and 16.7% in the R11s. The teardown analysis reveals that no indigenous Chinese firms are involved in the manufacture of the printed circuit board assembly, which explains the relatively low Chinese domestic value added. Using retail price to measure total value added, we find that the domestic value added of the MIX 2 to be 41.7% while that of the R11s to be 45.3%. The cost of retail services and gross marginal profits contribute most to the increase, which implies that nurturing mobile phone brands has not only enabled the Chinese mobile phone industry to move up ladder of value chains, but also to improve domestic value added. JEL Classification Codes: L63, F23 GRIPS Policy Research Center 2018-09-27 eng technical report AM https://doi.org/10.24545/00001625 https://grips.repo.nii.ac.jp/records/1634 10.24545/00001625 https://ideas.repec.org/p/ngi/dpaper/18-09.html https://ideas.repec.org/p/ngi/dpaper/18-09.html GRIPS Discussion Papers DP18-09 https://grips.repo.nii.ac.jp/record/1634/files/DP18-09.pdf application/pdf 494.6 kB