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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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In the past years we already posted two papers written on the topic:
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