Apple is considering boosting iPhone production in Brazil to avoid high import duties. The move comes after the US imposed new tariffs on imports from China and India. By assembling iPhones at its Foxconn facility in Jundiaí, Brazil, Apple aims to reduce taxes from 34% (China) and 26% (India) to 10%. This would save the company millions of dollars.
The production expansion is not a surprise, as Apple has already been manufacturing lower-end iPhone models in Brazil since 2011. However, this new move targets higher-end Pro models, which are currently imported from other countries. The Brazilian National Telecommunications Agency recently approved the assembly of the iPhone 16 model in Brazil, marking a significant milestone.
The economic benefits of this partial relocation are clear. With the US tariffs, Apple’s stock fell over 10% and lost $300 billion in market value. Diversifying production to Brazil is seen as a temporary solution to mitigate this impact. However, it remains uncertain whether Trump will impose higher tariffs on imports from Brazil, putting pressure on Apple’s strategy.
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Source: https://jasondeegan.com/apple-plans-to-manufacture-iphone-in-this-unlikely-country-to-dodge-taxes