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Intangible assets and value capture in global value chains: the smartphone industry

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  • Jason Dedrick
  • Kenneth L. Kraemer

Abstract

This report uses data on individual smart phones as well as industry data to identify which smartphone firms capture the most value. It finds that Apple captures most of the industry profits, thanks to its high prices, large profit margins and the volume of iPhone sales worldwide. Apple’s success is explained as a result of its ability to develop its own intellectual property (IP) and take advantage of IP created by suppliers through a strategy of selling only a few models at high prices compared to competitors.

Suggested Citation

  • Jason Dedrick & Kenneth L. Kraemer, 2017. "Intangible assets and value capture in global value chains: the smartphone industry," WIPO Economic Research Working Papers 41, World Intellectual Property Organization - Economics and Statistics Division.
    • Handle: RePEc:wip:wpaper:41
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    File URL: http://www.wipo.int/edocs/pubdocs/en/wipo_pub_econstat_wp_41.pdf
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    References listed on IDEAS

    as
    1. Clair Brown & Greg Linden, 2009. "Chips and Change: How Crisis Reshapes the Semiconductor Industry," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262013460, December.
    2. Jason Dedrick & Kenneth L. Kraemer & Greg Linden, 2010. "Who profits from innovation in global value chains? A study of the iPod and notebook PCs," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 19(1), pages 81-116, February.
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    Cited by:

    1. Varriale, Vincenzo & Cammarano, Antonello & Michelino, Francesca & Caputo, Mauro, 2022. "The role of supplier innovation performance and strategies on the smartphone supply market," European Management Journal, Elsevier, vol. 40(4), pages 490-502.
    2. Wen Chen & Reitze Gouma & Bart Los & Marcel P. Timmer, 2017. "Measuring the income to intangibles in goods production: a global value chain approach," WIPO Economic Research Working Papers 36, World Intellectual Property Organization - Economics and Statistics Division.
    3. Wipo, 2017. "World Intellectual Property Report 2017 - Intangible Capital in Global Value Chains," WIPO Economics & Statistics Series, World Intellectual Property Organization - Economics and Statistics Division, number 2017:944, January.

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