I think the article is pretty reasonable. There are also some rumors that the iPad Mini would be produced in Brazil, which makes even more sense to me.
Foxconn was supposed to have a huge tax advantage from Brazilian government to build a plant over here. I have also heard that the government would cut taxes so much that tablets would be the most popular gadget over here (especially in schools). So far, nothing has been officially announced, although they are already making Brazilian iPhones (see below).
Brazil has one of the higher tax rates in the world. For you to have an idea: our currency, Real (R$) equals to US$ 2.00. Now look at the Apple local prices:
MacBook Air 11" R$ 3.700,00 = US$ 1,850.00 (85% higher than USA)
MacBook Air 13" R$ 5.000,00 = US$ 2,500.00 (108% higher than USA)
The New iPad 16Gb Wifi Only R$ 1.550,00 = US$ 775.00 (93% higher than USA)
iPhone 4S 16Gb R$ 2.000,00 = US$ 1,000.00 (54% higher) *
iPhone 4 8Gb R$ 1.500,00 = US$ 750.00 (N/A) *
iPhone 3GS 8Gb R$ 1.000,00 = US$ 500.00 (N/A) *
* Brazilian law forces phone companies to unlock any phone, whether you have a contract or not. That's why those prices are lower if compared to the unlocked phones in the US.
Notice that there is a "iPhone 4 8Gb" manufactured in Brazil. I'm not aware of any other market with this product. So, that must have happened in order to cut the price (and it is selling a lot).
There are many cheap tablets in Brazil. Samsung Galaxy Tab 7" (which is not at all the cheapest) is R$ 1.000,00 = US$ 500,00 (so, iPad is 55% more expensive). Now most people want a tablet. They don't have a clue of which one (Bezel, what is that? Retina? What a tablet has to do with my eyeball?). But they do look carefully at the prices.
So, I do think they may come up with a slighter simpler product (no retina, for example) and with taxes cut have something like a US$ 150.00/200.00 product. If Brazilian government further cut taxes for end-users that would definitely turn it into a very attractive deal. Maybe Apple's plan is just trying a "light" product in emerging markets first (like with the iPhone 4 8Gb).
Mr. Milk