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MacRumors
Sep 13, 2011, 11:42 PM
http://images.macrumors.com/im/macrumorsthreadlogo.gif (http://www.macrumors.com/2011/09/14/apple-reportedly-ready-to-begin-ipad-production-in-brazil/)


http://images.macrumors.com/article-new/2011/09/ipad_2_brazil.jpg


MacStories points (http://www.macstories.net/news/new-ipad-factory-in-brazil-is-ready-already-making-ipads-for-december/) to an article (http://tecnologia.uol.com.br/ultimas-noticias/redacao/2011/09/13/ipad-brasileiro-chega-ao-mercado-em-dezembro-afirma-ministro.jhtm) from Brazilian Internet portal UOL covering comments from Brazilian Minister of Science and Technology Aolizio Mercadante revealing that Apple is ready to begin production of the iPad in Brazil. Deliveries are said to be set to begin in December. From a Google translation:The Minister of Science, Technology and Innovation, Mercadante, said on Tuesday (13) that Apple plant in Jundiaí (SP) is ready to be opened and produce iPads that reach the market until December, during a hearing of the Commission Economic Affairs (CAE) of the Senate.

"At first many doubted, but it will be the first time that the company will produce iPads outside Chinese territory. We are taking a big step for digital inclusion in the country," he said.Reports (http://www.macrumors.com/2011/04/12/foxconn-to-invest-12-billion-in-brazil-with-ipad-production-to-begin-by-november/) first surfaced back in April claiming that Apple's manufacturing partner Foxconn was set to invest up to $12 billion in production facilities in Brazil, offering a means to circumvent high import taxes on electronics products in the world's fifth most populous country. Initial plans had called for production to begin by November, but Foxconn had hoped to accelerate (http://www.macrumors.com/2011/05/06/foxconn-seeking-to-accelerate-start-of-ipad-production-in-brazil-to-july/) the timeline to begin production in July. That acceleration appears to have not been possible, with production plans returning to close to the original schedule.

Article Link: Apple Reportedly Ready to Begin iPad Production in Brazil (http://www.macrumors.com/2011/09/14/apple-reportedly-ready-to-begin-ipad-production-in-brazil/)



Prab
Sep 14, 2011, 12:59 AM
"Designed by Apple in California. Assembled in Brazil"

MattInOz
Sep 14, 2011, 01:10 AM
Maybe the Brazilian are better at keeping secrets...
and they are also producing the real iPhone 5.

wackymacky
Sep 14, 2011, 02:26 AM
Maybe the Brazilian are better at keeping secrets...
and they are also producing the real iPhone 5.

Or labour costs in China are now higher than Brazil.

Just hope that Foxconn didn't clear rainforest for land to build the factory on!

mdriftmeyer
Sep 14, 2011, 03:52 AM
Or labour costs in China are now higher than Brazil.

Just hope that Foxconn didn't clear rainforest for land to build the factory on!

What kind of comment is that when Apple and it's Founder have a loathing for such actions?

ade2bee
Sep 14, 2011, 04:02 AM
What kind of comment is that when Apple and it's Founder have a loathing for such actions?

What kind of naive comment is the one you made!

Do you know that the Chinese factory in which Apple products are made is built on a Baby/child graveyard that was used right up to the day building began, babies being buried there thanks to the one child policy, that our leaders have never directly objected too. I own Apple products, plus Jobs is a genius, but business is business... don't be so naive with the green thing.

(PS you're as green a company as you want the public to believe you are)

Plotzki
Sep 14, 2011, 07:54 AM
Or labour costs in China are now higher than Brazil.

Just hope that Foxconn didn't clear rainforest for land to build the factory on!

I live in Brazil.
Don't Worry. Brazil has a good control of the rain forest in the south and the coast of the country, and Jundiai already is an industrial region. The region where we have problems to control the forest are in the Amazon and it's boundaries, that is really far from Jundiai, about 3000km.

Lone Deranger
Sep 14, 2011, 08:29 AM
That ought to placate the folks who’ve been pleading with Apple to move production back to America. ;)

Attonine
Sep 14, 2011, 09:00 AM
For those who don't know, import duty in Brazil is often higher than 50%. This is the result of a long standing policy by the government to encourage foreign companies to fabricate in Brazil if they want to sell there. There are a lot of highly educated people in Brazil, but the problem is no jobs. One can only assume that the Foxconn factory is a direct result of this policy. Harley Davidson assembles bikes in Manaus, as does KTM, thus avoiding this import duty.

Hopefully, for those of us living in Brazil, this will now mean iPads at reasonable prices, and I'd be deliriously happy if this factory expanded to include iPhone and maybe even some Mac assembly too.

jayhawk11
Sep 14, 2011, 09:08 AM
But would this remove the import duty on *all* Apple products, or only iPads?

carlgo
Sep 14, 2011, 09:16 AM
Don't worry. Soon labor costs in the US will be as low as anyone's, no benefits and environmental standards will go back to the 1800's so that we can compete.

Or, put up trade barriers until they catch up to us...

Plotzki
Sep 14, 2011, 09:27 AM
Don't worry. Soon labor costs in the US will be as low as anyone's, no benefits and environmental standards will go back to the 1800's so that we can compete.

Or, put up trade barriers until they catch up to us...

I don't know, since this production model is created by the US, conducted by mostly by US companies. Most of the money come back to the US, believe me. Watch Apple cash reserves.

Today the cheapest iPad costs USD 957 in Brazil.

This where Foxconn Brazil is located in Jundiai: http://wikimapia.org/#lat=-23.1655348&lon=-46.9466347&z=15&l=0&m=b

Starship77
Sep 14, 2011, 09:42 AM
Hopefully, for those of us living in Brazil, this will now mean iPads at reasonable prices, and I'd be deliriously happy if this factory expanded to include iPhone and maybe even some Mac assembly too.

Not just cheaper for Brazil but all Mercosur/Mercosul countries like Argentina, Uruguay and Paraguay. Colombia has free trade agreements and Venezuela is joining. Brazil has also free trade agreements with Egypt and Israel, but I don't know if it applies here... Anyway, it's good news for a lot of people! :)

digtlartst
Sep 14, 2011, 09:50 AM
I don't know, since this production model is created by the US, conducted by mostly by US companies. Most of the money come back to the US, believe me. Watch Apple cash reserves.


Believe me, "Most of the money" doesn't include $12 billion that Apple is holding offshore because they don't want to pay US taxes on it.

http://www.nytimes.com/2011/06/20/business/20tax.html?pagewanted=all

As the second-largest-cap corporation in all the world, and with all the cleverness at Apple, I cannot understand why they can't come up with a profitable business plan to spend a measly $1B of their $70B of cash and open a single factory in the US (even in a shuttered old ex-factory building somewhere) to even just do final assembly of Chinese parts, and employ a few thousand Americans.

For decades, every Apple product sale has been enriching a lot of Chinese and Taiwanese, just like every WalMart sale does.

My 2c.

Plotzki
Sep 14, 2011, 11:01 AM
Believe me, "Most of the money" doesn't include $12 billion that Apple is holding offshore because they don't want to pay US taxes on it.

http://www.nytimes.com/2011/06/20/business/20tax.html?pagewanted=all

As the second-largest-cap corporation in all the world, and with all the cleverness at Apple, I cannot understand why they can't come up with a profitable business plan to spend a measly $1B of their $70B of cash and open a single factory in the US (even in a shuttered old ex-factory building somewhere) to even just do final assembly of Chinese parts, and employ a few thousand Americans.

For decades, every Apple product sale has been enriching a lot of Chinese and Taiwanese, just like every WalMart sale does.

My 2c.

This is a very complicated game, no doubt about it. I know that most of our electronics imports taxes are to compensate the tax barrier imposed for our agricultural products in US (like Cotton and Orange Juice among others) and US subsidized agriculture.

This policy is very annoying for me too since I run an video production company and pay a lot of tax to buy equipment.

50548
Sep 14, 2011, 11:29 AM
Or labour costs in China are now higher than Brazil.

Just hope that Foxconn didn't clear rainforest for land to build the factory on!

It's always interesting to read such misinformed comments from US readers, as if Brazil was the jungle and nothing else. Almost NOBODY lives in the Amazon, Sir, and no high-tech industries exist in the rainforest region, apart from the customs-free industrial zone set up in the Amazon State capital Manaus more than 40 years ago.

Actually more than half of the Brazilian population is already "middle class", not to mention its very rich elite...Brazil is the 4th biggest market in the world for cars, and would be EVEN bigger were it not for the very high taxes that plague the country.

And before some person starts saying something about Brazil being the next "China sweatshop", it's important to highlight that the country has one of the highest labor costs on Earth, as well as a very extensive safety net - this is why you don't see "Made in Brazil" stickers like you do for China, Bangladesh, Poland, Romania and other low-cost places. In fact, the Brazilian labor force today is probably more expensive than the US one, notably at executive level (CEO/Director-level salaries in Brazil are the highest in the world). Comparisons with labor costs in China are, in any case, totally unwarranted since Brazilian labor is MUCH more expensive than in Asian sweatshops.

The main objective of this initiative is not simply to create jobs: it's to foster the high-tech sector and give much easier access to tablets as the next big thing in digital inclusion policies - IMPORTED electronics are very expensive in Brazil, and with local production (even if many components are still imported), the final price can fall by at least 30% in there because of tax reductions...a great achievement already.

As for Apple/Foxconn, they secure a manufacturing spot in a safe, democratic and Western powerhouse, while tapping the gigantic local market big time - the usual Brazilian mongrel dogs (those who never say anything positive about the country) may say that this is just an "assembly" factory using imported parts - fact is: access to technology is crucial for Brazil's definitive entry into the developed Western world, and the network/indirect economic benefits from having a Foxconn plant there will definitely lead to at least some degree of technology transfer and expertise.

And I assure you will NOT hear about "Chinese suicides" down there - we are far more protected and expensive than the usual Asian or even US employee.

p.s.: MR editors, PLEASE correct the name of the Brazilian Minister: it is Aloízio Mercadante..!

Amazing Iceman
Sep 14, 2011, 11:47 AM
Foxconn will increase production speed by having their workers do their tasks at rhythm of Samba. :D
The Chinese can't beat that!

Plotzki
Sep 14, 2011, 11:53 AM
Foxconn will increase production speed by having their workers do their tasks at rhythm of Samba. :D
The Chinese can't beat that!

Hahahahaha!

accessoriesguy
Sep 14, 2011, 01:06 PM
It's always interesting to read such misinformed comments from US readers, as if Brazil was the jungle and nothing else. Almost NOBODY lives in the Amazon, Sir, and no high-tech industries exist in the rainforest region, apart from the customs-free industrial zone set up in the Amazon State capital Manaus more than 40 years ago.

That just made my day. If it makes you feel any better (or worse) i have become accustom to believe all Brazilian women are hot.

*LTD*
Sep 14, 2011, 01:53 PM
It's always interesting to read such misinformed comments from US readers, as if Brazil was the jungle and nothing else. Almost NOBODY lives in the Amazon, Sir, and no high-tech industries exist in the rainforest region, apart from the customs-free industrial zone set up in the Amazon State capital Manaus more than 40 years ago.

Actually more than half of the Brazilian population is already "middle class", not to mention its very rich elite...Brazil is the 4th biggest market in the world for cars, and would be EVEN bigger were it not for the very high taxes that plague the country.

And before some person starts saying something about Brazil being the next "China sweatshop", it's important to highlight that the country has one of the highest labor costs on Earth, as well as a very extensive safety net - this is why you don't see "Made in Brazil" stickers like you do for China, Bangladesh, Poland, Romania and other low-cost places. In fact, the Brazilian labor force today is probably more expensive than the US one, notably at executive level (CEO/Director-level salaries in Brazil are the highest in the world). Comparisons with labor costs in China are, in any case, totally unwarranted since Brazilian labor is MUCH more expensive than in Asian sweatshops.

The main objective of this initiative is not simply to create jobs: it's to foster the high-tech sector and give much easier access to tablets as the next big thing in digital inclusion policies - IMPORTED electronics are very expensive in Brazil, and with local production (even if many components are still imported), the final price can fall by at least 30% in there because of tax reductions...a great achievement already.

As for Apple/Foxconn, they secure a manufacturing spot in a safe, democratic and Western powerhouse, while tapping the gigantic local market big time - the usual Brazilian mongrel dogs (those who never say anything positive about the country) may say that this is just an "assembly" factory using imported parts - fact is: access to technology is crucial for Brazil's definitive entry into the developed Western world, and the network/indirect economic benefits from having a Foxconn plant there will definitely lead to at least some degree of technology transfer and expertise.

And I assure you will NOT hear about "Chinese suicides" down there - we are far more protected and expensive than the usual Asian or even US employee.

p.s.: MR editors, PLEASE correct the name of the Brazilian Minister: it is Aloízio Mercadante..!

Any country that could produce something like Andressa Soares, *has to* be quite sophisticated. Truly, a marvel of engineering and design.

50548
Sep 14, 2011, 02:18 PM
Any country that could produce something like Andressa Soares, *has to* be quite sophisticated. Truly, a marvel of engineering and design.

No idea who that is...link? :D

*LTD*
Sep 14, 2011, 04:11 PM
No idea who that is...link? :D

Switzerland has made you all too curious. ;)

Attonine
Sep 14, 2011, 04:29 PM
Actually more than half of the Brazilian population is already "middle class", not to mention its very rich elite...Brazil is the 4th biggest market in the world for cars, and would be EVEN bigger were it not for the very high taxes that plague the country.



I don't want to drag this thread off topic, but you mention "middle class". It is important, when talking about Brazil, to define this. The Brazilian Gvmt defines any household with an income between R$1000 and R$4000 as middle class. To my mind this is ridiculous. This FT blog is an interesting read regarding social classification in Brazil.



http://blogs.ft.com/beyond-brics/2011/08/17/brazils-middle-class-poorer-than-you-think/#axzz1XxpyzqW7

heffeque
Sep 14, 2011, 04:35 PM
For those who don't know, import duty in Brazil is often higher than 50%. This is the result of a long standing policy by the government to encourage foreign companies to fabricate in Brazil if they want to sell there. There are a lot of highly educated people in Brazil, but the problem is no jobs. One can only assume that the Foxconn factory is a direct result of this policy. Harley Davidson assembles bikes in Manaus, as does KTM, thus avoiding this import duty.

Hopefully, for those of us living in Brazil, this will now mean iPads at reasonable prices, and I'd be deliriously happy if this factory expanded to include iPhone and maybe even some Mac assembly too.
Yeah... I'm thinking of going to live to Brazil and I thought to myself... well, if my current MacBook Pro dies, maybe I'll buy it there in Brazil.

Checked the Brazilian Apple Store and... BAM! The cheapest 15 inch MBP is 6700 reales, that's almost 3900 dollars. WTF? :confused:

And I thought that Europe's prices were high. I paid 1500 euros for mine! But 3900 dollars?!?! That's just crazy...

Attonine
Sep 14, 2011, 04:47 PM
Yeah... I'm thinking of going to live to Brazil and I thought to myself... well, if my current MacBook Pro dies, maybe I'll buy it there in Brazil.

Checked the Brazilian Apple Store and... BAM! The cheapest 15 inch MBP is 6700 reales, that's almost 3900 dollars. WTF? :confused:

And I thought that Europe's prices were high. I paid 1500 euros for mine! But 3900 dollars?!?! That's just crazy...

Depending on where you live, Brazil is just as expensive as Western Europe or North America. Imported products are very, very expensive. But just about everything is over taxed, and then taxed again. It all adds up. I live in Sao Paulo, and the cost of living is equal to London.

DesignerOnMac
Sep 14, 2011, 05:39 PM
Foxconn will increase production speed by having their workers do their tasks at rhythm of Samba. :D
The Chinese can't beat that!

There is actually a well known Japanese band that speaks spanish and plays Samba and Salsa music. If you did not see their faces, but listened to their music you would swear that they were South American!

http://www.youtube.com/watch?v=sqVQjddTM3I&feature=related

Check them out!

Attonine
Sep 14, 2011, 08:14 PM
There is actually a well known Japanese band that speaks spanish and plays Samba and Salsa music. If you did not see their faces, but listened to their music you would swear that they were South American!

http://www.youtube.com/watch?v=sqVQjddTM3I&feature=related

Check them out!

Don't forget South America has a huge Japanese population. There was large scale migration from Japan to South America after World War 2. Peru has had a president of Japanese descent. I think I'm correct in saying that Brazil has the largest japanese community outside of Japan. There are some cities in Sao Paulo state which, even today, have populations that are predominantly of Japanese descent, I used to live in one, Suzano. Inside Japan there is also a huge Brazilian community, as well as communities from all over South America. These communities are made up of the children of emigres who return to Japan for work, often in the factories or labour intensive, low skilled jobs the Japanese are not interested in.

ffaBR
Sep 14, 2011, 10:13 PM
Or labour costs in China are now higher than Brazil.

Just hope that Foxconn didn't clear rainforest for land to build the factory on!

Dont worry, factory are ready to build the iPads, and any rainforest was cleared to built the factory.
We still have some forest here.... we didnt like the europeans and USA that cleared almost all their forest!!! ;)
Brazil rules now!

----------

It's always interesting to read such misinformed comments from US readers, as if Brazil was the jungle and nothing else. Almost NOBODY lives in the Amazon, Sir, and no high-tech industries exist in the rainforest region, apart from the customs-free industrial zone set up in the Amazon State capital Manaus more than 40 years ago.

Actually more than half of the Brazilian population is already "middle class", not to mention its very rich elite...Brazil is the 4th biggest market in the world for cars, and would be EVEN bigger were it not for the very high taxes that plague the country.

And before some person starts saying something about Brazil being the next "China sweatshop", it's important to highlight that the country has one of the highest labor costs on Earth, as well as a very extensive safety net - this is why you don't see "Made in Brazil" stickers like you do for China, Bangladesh, Poland, Romania and other low-cost places. In fact, the Brazilian labor force today is probably more expensive than the US one, notably at executive level (CEO/Director-level salaries in Brazil are the highest in the world). Comparisons with labor costs in China are, in any case, totally unwarranted since Brazilian labor is MUCH more expensive than in Asian sweatshops.

The main objective of this initiative is not simply to create jobs: it's to foster the high-tech sector and give much easier access to tablets as the next big thing in digital inclusion policies - IMPORTED electronics are very expensive in Brazil, and with local production (even if many components are still imported), the final price can fall by at least 30% in there because of tax reductions...a great achievement already.

As for Apple/Foxconn, they secure a manufacturing spot in a safe, democratic and Western powerhouse, while tapping the gigantic local market big time - the usual Brazilian mongrel dogs (those who never say anything positive about the country) may say that this is just an "assembly" factory using imported parts - fact is: access to technology is crucial for Brazil's definitive entry into the developed Western world, and the network/indirect economic benefits from having a Foxconn plant there will definitely lead to at least some degree of technology transfer and expertise.

And I assure you will NOT hear about "Chinese suicides" down there - we are far more protected and expensive than the usual Asian or even US employee.

p.s.: MR editors, PLEASE correct the name of the Brazilian Minister: it is Aloízio Mercadante..!

Congratulations! I dont need to talk anymore about, after your comments!! Brazil rules!

liavman
Sep 17, 2011, 08:54 PM
Foxconn will increase production speed by having their workers do their tasks at rhythm of Samba. :D
The Chinese can't beat to that!
:)