We use data on both daily stock returns and internet activity to estimate the value of Apple's iPhone and related intellectual property. We find the private value of iPhone to be 10%–13% of Apple's market cap. Grounded in the resource-based theory, we argue that much of this value stems from Apple's managerial capabilities to capitalize on the product, as proprietary technology explains about 25% of the private value. This effect arises from patent applications, rather than grants or trademarks. Our analysis of the global supply chain of iPhone suggests that besides Apple, firms in the supply chain are able to capture very limited value from iPhone. These results support the theory of dynamic capabilities, maintaining that a firm's unique dynamic managerial and organizational capabilities are crucial for value creation in globally competitive innovative industries.