Apple's foldable device, the iPhone Duo, starts at 15,999 yuan in China (mainly referring to the Chinese mainland) for the 256GB storage version.

According to institutional estimates, the Bill of Materials (BOM) cost, or simply the material cost, for this 15,999-yuan iPhone is approximately $1,400, equivalent to around 9,400 yuan.

However, it's a misconception to think that Apple pockets the entire difference of 15,999 yuan - 9,400 yuan = 6,600 yuan. That's not how it works.

Firstly, for sales within China, Apple is required to pay roughly 1,847 yuan in taxes for each 15,999-yuan iPhone Duo sold in the country.

After accounting for taxes, Apple's actual revenue is around 14,152 yuan, and then there's the BOM cost of $1,400 to consider.

This $1,400 BOM cost is distributed among hundreds of global supply chains, each of which also needs to generate a profit.

So, how is this $1,400 BOM cost divided? Which countries and regions hold the largest shares in the supply chain?

South Korea undoubtedly takes the lion's share, as the iPhone Duo's screen is exclusively supplied by Samsung, costing a hefty $250 alone. Moreover, South Korea also provides memory chips, which are currently very costly, whether it's RAM or flash memory.

Consequently, South Korea accounts for approximately 20-35% of the total BOM cost, the highest proportion.

The Chinese mainland also commands a significant share this time around. Although it doesn't supply high-value items like screens and chips, the Chinese supply chain provides various precision components for the iPhone Duo, such as hinge precision structural parts, screen support plates, and ultra-thin heat spreaders.

The Chinese mainland's supply chain accounts for roughly 20-30% of the total, second only to South Korea. Taking the midpoint and calculating at 25%, 25% of $1,400, when converted to yuan, amounts to approximately 2,300 yuan.

Next up is the supply chain from Taiwan Province, which accounts for 12-15%. After all, the A20 Pro chip is manufactured by TSMC, and numerous components are also supplied by Taiwanese manufacturers. Notably, the assembly of the entire iPhone Duo is still undertaken by Foxconn Industrial Internet (Foxconn).

The United States has a relatively smaller share, primarily due to the A20 Pro chip and a few other components, accounting for around 8-12%. However, this figure does not include the iOS system, which is not factored into the hardware BOM.

From these figures, it's evident that the Chinese supply chain is no longer the low-value, purely cost-effective option it once was. Our entry into the Apple supply chain is actually increasing in value, and the technological sophistication is also on the rise.

Looking ahead, it's plausible that memory and flash memory chips will join the Apple supply chain, and by then, the value share of the Chinese supply chain might even surpass that of South Korea.