IMF’s new World Economic Outlook which throws light on a new tech production system based on smartphones rather than personal computers
Policy wonks would do well to read an interesting analysis in the International Monetary Fund’s (IMF’s) new World Economic Outlook which throws light on a new tech production system based on smartphones rather than personal computers.
IMF says smartphones accounted for a sixth of global trade growth in 2017. The supply chain is interesting. China ships most gizmos; South Korea, Malaysia, Singapore and Taiwan top component production; and Ireland captures the intangible value since Apple’s intellectual property is housed there.
For example, in South Korea, production of smartphone parts made up a third of 2017 economic growth—and even more in Taiwan. The tech cycle based on smartphones is highly sensitive to the calendar for product releases.
India is a big importer of smartphones but is not plugged into any part of the production cycle, be it components, final products or intellectual property. The question is: How do we get into the game—through protectionism or a better business climate?
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