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Apple Reportedly Ready to Begin iPad Production in Brazil

Discussion in 'iOS Blog Discussion' started by MacRumors, Sep 13, 2011.

  1. macrumors bot




    MacStories points to an article 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:
    Reports 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 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
  2. macrumors newbie

    "Designed by Apple in California. Assembled in Brazil"
  3. macrumors 68030


    Maybe the Brazilian are better at keeping secrets...
    and they are also producing the real iPhone 5.
  4. macrumors 65816


    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!
  5. macrumors 68030


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

    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)
  7. macrumors newbie

    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.
  8. Lone Deranger, Sep 14, 2011
    Last edited: Sep 14, 2011

    macrumors 65816

    Lone Deranger

    That ought to placate the folks who’ve been pleading with Apple to move production back to America. ;)
  9. macrumors 6502a

    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.
  10. macrumors 6502a


    But would this remove the import duty on *all* Apple products, or only iPads?
  11. macrumors 68000

    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...
  12. macrumors newbie

    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
  13. macrumors regular


    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! :)
  14. macrumors newbie

    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.


    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.
  15. macrumors newbie

    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.
  16. 50548, Sep 14, 2011
    Last edited: Sep 14, 2011


    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..!
  17. macrumors 68030

    Amazing Iceman

    Foxconn will increase production speed by having their workers do their tasks at rhythm of Samba. :D
    The Chinese can't beat that!
  18. macrumors newbie

  19. macrumors 6502a

    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.
  20. macrumors G4


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

    No idea who that is...link? :D
  22. macrumors G4


    Switzerland has made you all too curious. ;)
  23. macrumors 6502a

    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.

  24. macrumors regular


    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...
  25. macrumors 6502a

    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.

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