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Designed in California, Assembled in China

Apple vs. Foxconn stock price since 2004
Investments Office, June 2013

As markets tend to reward high margin companies the contrast is particularly visible when comparing Apple’s stock price with Foxconn (the Chinese company that assembles Apple's products): as Apple elegantly puts it on the back of its products: “Designed by Apple in California, Assembled in China”. Or, as Andy Kessler formulated it in 2004, “We think, they sweat”; Apple captures most of the margins, while all other brands are hidden.  That being said, trade is mutually beneficial, and Foxconn was still a good investment.

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