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Old Apr 12, 2011, 11:40 AM   #1
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Foxconn to Invest $12 Billion in Brazil With iPad Production to Begin by November?






There have been some rumblings in recent weeks about Apple and manufacturing partner Foxconn making investments in Brazil to manufacture devices there in an effort at least in part designed to boost sales there by circumventing high import taxes currently assessed on the devices coming in from overseas, but according to a new report from Reuters, things seem to be firming up with Foxconn considering investing up to $12 billion in manufacturing facilities in the country.
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The Brazilian government is studying Foxconn's investment plan, President Dilma Rousseff told reporters during a visit to Beijing, where she is meeting with Chinese President Hu Jintao.

"You've got an ample range of investments that go from $300 to $400 million to $12 billion over 5 to 6 years in the case of Foxconn," Rousseff said, speaking of discussions Brazil's government is having with various technology companies.

"They're proposing a partnership. They came to us and said we want to invest in Brazil."
Aloizio Mercadente, Brazil's science and technology minister, notes that discussions with Foxconn have been in progress for three months and while they are still in progress, he is "confident" that a deal will be reached. Mercadente also reported that Foxconn is preparing to begin manufacturing the iPad in Brazil by the end of November.
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Separately, Mercadente also told reporters that Foxconn is planning to begin assembling Apple's iPad tablet PC at its plants in the South American country by end-November.
Foxconn is Apple's chief manufacturing partner for its mobile devices, as well as for many of its computers. The Taiwanese company has primarily hosted its manufacturing plants in mainland China, tapping into that country's vast workforce for high-volume production of electronics. The company has, however, in recent months begun instituting plans to expand beyond its massive base in Shenzhen, China to other regions of the country and even internationally.

Article Link: Foxconn to Invest $12 Billion in Brazil With iPad Production to Begin by November?
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Old Apr 12, 2011, 11:41 AM   #2
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Great news. The more manufacturing capacity, the better.
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Old Apr 12, 2011, 11:45 AM   #3
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If they build it from scratch, they could probably design the place with working conditions that don't make people as suicidal.
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Old Apr 12, 2011, 11:46 AM   #4
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it's about friggin time apple build a serious volume manufacturing plant in the US! end of story!
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Old Apr 12, 2011, 11:47 AM   #5
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it's about friggin time apple build a serious volume manufacturing plant in the US! end of story!
... then sit back and watch everyone complain about the high priced products! Yeah, sounds like a winner.
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Old Apr 12, 2011, 11:50 AM   #6
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How about, "we want to invest in the US!"

Sheeeez!

There should be a law that states anytime a US company chooses to manufacture something outside the US, the company must post a clearly-articulated-less-than-25-page document stating AND COMPARING why the US is unable to manufacture said product.
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Old Apr 12, 2011, 11:50 AM   #7
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If they build it from scratch, they could probably design the place with working conditions that don't make people as suicidal.
Oh please... not this again!
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Old Apr 12, 2011, 11:51 AM   #8
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Yeah, great news indeed. I wish they'd actually manufacture in more countries like Nokia does.
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Old Apr 12, 2011, 11:51 AM   #9
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How about, "we want to invest in the US!"

Sheeeez!

There should be a law that states anytime a US company chooses to manufacture something outside the US, the company must post a clearly-articulated-less-than-25-page document stating AND COMPARING why the US is unable to manufacture said product.
Does the 25 pages include the cover and back?
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Old Apr 12, 2011, 11:52 AM   #10
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... then sit back and watch everyone complain about the high priced products! Yeah, sounds like a winner.
And not complain about Apple's margins?

Gimme a break...just because something is manufactured in the USA does not instantly mean it's pricier to the end consumer. There are a LOT of reasons why businesses invest outside the US and typically at the end of the day it's the COMPANY that wants to SAVE money and KEEP THOSE SAVINGS.

Do you really think the company passes 100% of the savings on to the consumer? How about 50% of those savings. Keep going....
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Old Apr 12, 2011, 11:54 AM   #11
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I'd feel better knowing all my electronics aren't coming from repressive Communist China.
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Old Apr 12, 2011, 11:56 AM   #12
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If they build it from scratch, they could probably design the place with working conditions that don't make people as suicidal.
Your post meets the definition of ignorance.
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Old Apr 12, 2011, 11:59 AM   #13
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If Apple manufactured their products in the US, the iPhone would probably cost $999 with a 2-year contract and the iPad would probably cost $1599 for the 16GB model.

When you have to pay someone $12 an hour to work an assembly line and pay for benefits and payroll taxes, that raises costs a lot to a country where you can pay 75 cents per hour and benefits like health insurance cost $5 a month rather than $500.

A 25-page document isn't necessary and the law would be dumb. All that it takes is for someone to take a basic economics course.

Americans who complain about jobs leaving overseas need to realize that when they go shopping they need to put their money where their mouth is. Everyone pays lip service to "made in the usa" but when they look at the price tags in the store they buy made in china!

The thing to watch here is if the quality improves when production is done in Brazil. If the production quality is the same or better, that's good news for consumers.
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Old Apr 12, 2011, 11:59 AM   #14
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I'd feel better knowing all my electronics aren't coming from repressive Communist China.
Do you mean "repressive secretly capitalist China"? Haven't seen that one you mention in years.
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Old Apr 12, 2011, 12:01 PM   #15
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In Brazil any import has about 80% in taxes. That is the way to industrialize the country and make people and companies build the products "in house".

Building the iPad there would be a very good move since for the huge population and cheap professional labor.
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Old Apr 12, 2011, 12:01 PM   #16
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If they build it from scratch, they could probably design the place with working conditions that don't make people as suicidal.
The only reason suicide rates spiked was because of this policy regarding suicides that involved reimbursing the families for their loss if their loved one suicided at foxconn, if i remember correctly. That policy doesn't exist anymore AFAIK. People were just trying to provide for their families, even in death.
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Old Apr 12, 2011, 12:02 PM   #17
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How about, "we want to invest in the US!"

Sheeeez!

There should be a law that states anytime a US company chooses to manufacture something outside the US, the company must post a clearly-articulated-less-than-25-page document stating AND COMPARING why the US is unable to manufacture said product.
Never gonna happen. Pretty much all politicians in the United States are bought and owned by corporate interest groups. And they're not out to help the average guy live a decent life. They're not gonna stop until they've destroyed the labour unions completely so they can bring our wages down even more. The minimum wage is already a joke but don't worry man, the day we're making just as much as a bangladeshi guy they'll be happy. That way they don't have to move factories to the far east, They can just build them right here in the massive suburban poverty stricken areas of the united states. Then We'll be making iPhones at sh.it wages for the rich easterners! Yeehow! America Number 1?!.......... No?

It's a sad world. If every country could just agree on laws that would secure a decent wage for everyone this sh.it wouldn't be going on.
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Old Apr 12, 2011, 12:03 PM   #18
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Originally Posted by ericinboston View Post
How about, "we want to invest in the US!"

Sheeeez!

There should be a law that states anytime a US company chooses to manufacture something outside the US, the company must post a clearly-articulated-less-than-25-page document stating AND COMPARING why the US is unable to manufacture said product.
Obviously companies build outside of the U.S. because it doesn't make financial sense to do so. U.S. labor is expensive in comparison to developing nations. Why is that so hard to understand?

Also if you look at the non-U.S. companies that have factories in the U.S. they are all in "right to work" states, so dealing with unions might be a factor too.
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Old Apr 12, 2011, 12:04 PM   #19
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Your post meets the definition of ignorance.
I thought it met the definition of sarcasm.
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Old Apr 12, 2011, 12:06 PM   #20
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it's about friggin time apple build a serious volume manufacturing plant in the US! end of story!
With all the hoops and regulations that plant would not be ready in our life time!
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Old Apr 12, 2011, 12:07 PM   #21
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So Apple might pass some of the SAVINGS on to their "CUSTOMERS" sometime soon?
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Old Apr 12, 2011, 12:07 PM   #22
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Originally Posted by ericinboston View Post
How about, "we want to invest in the US!"

Sheeeez!

There should be a law that states anytime a US company chooses to manufacture something outside the US, the company must post a clearly-articulated-less-than-25-page document stating AND COMPARING why the US is unable to manufacture said product.
lol.. I seem to get the feeling that you are an anti-outsourcing person. I hope everything you buy in your life is made in the good ol USA. =) <-- I may be wrong. Feel free to correct me.

it's a bit too expensive for companies on the scale of Apple to mass produce in America. Plus, there are so many laws and regulations sanctioned by our great Congress to protect certain industries and whatnot, equating to greater barriers to import inputs for their electronics. This may mean that Apple products might be more expensive than it is now.

Also, American labor unions, in my opinion, can be very disruptive for production. If Apple is struggling to keep up production now, imagine if "the Apple Labor Union for Workers" decided to go on strike for whatever "menial" reason.

Sorry, but the US is no longer comparatively advantageous for labor.
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Old Apr 12, 2011, 12:08 PM   #23
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If Apple manufactured their products in the US, the iPhone would probably cost $999 with a 2-year contract and the iPad would probably cost $1599 for the 16GB model.

When you have to pay someone $12 an hour to work an assembly line and pay for benefits and payroll taxes, that raises costs a lot to a country where you can pay 75 cents per hour and benefits like health insurance cost $5 a month rather than $500.

A 25-page document isn't necessary and the law would be dumb. All that it takes is for someone to take a basic economics course.

Americans who complain about jobs leaving overseas need to realize that when they go shopping they need to put their money where their mouth is. Everyone pays lip service to "made in the usa" but when they look at the price tags in the store they buy made in china!

The thing to watch here is if the quality improves when production is done in Brazil. If the production quality is the same or better, that's good news for consumers.
Why? Samsung has manufactured their products in Korea. Their employees get more pay and benefits than average Americans. iPhone could be $615 vs $599 but I can pay a little more for iPhone assembled In USA.
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Old Apr 12, 2011, 12:08 PM   #24
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How about, "we want to invest in the US!"

Sheeeez!
Don't worry.

If the Chinese economy keeps growing at the same rate over the next decade they will be setting up manufacturing plants in the USA to take advantage of the cheap American labour.
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Old Apr 12, 2011, 12:08 PM   #25
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Lots of empty factories up in Rochester NY.... all they need to do is peal off the Kodak logo's and put up Foxconn.
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