It's literally not supposed to predict prices though, as a concept? Not under capitalism at least. It's just a recognition that people doing stuff is the only thing that makes commodities with use values that can be exchanged for cash. The common denominator is making stuff. When your resource extraction occurs at the barrel of a gun, of course it's unrelated to price. But of course, the value of a phone is indeed the socially necessary labor time to mine the rare earth minerals, process them, ship them to component fabs, ship components to assembly fabs, code the software, design the hardware, etc. The part of this that is least abstracted is the resource extraction because technological innovation has not made it a cheaper capital investment to develop fully autonomous mining rigs when your former colony is just sitting like right there nearby and you have their guys that own the guns by the balls.