Economists at the Asian Development Bank Institute claim that the success of the Apple iPhone is actually deepening the trade deficit between China and the United States.
The iPhone is apparently doing this damage despite the fact that the device is entirely owned and designed by a US company.
According to the same institution, the iPhone contributed $1.9 Billion to the trade deficit and those numbers look like they will repeated or surpassed for 2010.
Neal Detert and Yuqing Xing, who authored the study, say that “Even high-tech products invented by American companies will not increase the US exports, but to the contrary exacerbate the US trade deficits.”
Of course the study also finds that for the most part, this deficit might be merely a product of accounting error. Many of the parts that are put into the iPhone are made outside the US, including in China.
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