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Foxconn to begin iPad production in Brazil in September; Apple posts new iPad 2 ad

post #1 of 56
Thread Starter 
Brazil's Minister of Science and Technology has revealed that Foxconn is scheduled to start iPad production in the country in September, while Apple has posted a new ad showcasing the iPad 2.

iPad in Brazil

Minister AloÃ*zio Mercadante said that Apple had planned to begin production of the tablet in late July, but had pushed the start date back to late August or early September, Globo (via Google Translate) reports.

According to the minister, construction glitches and a shortage of skilled labor contributed to the delays. Foxconn, which serves as one of Apple's main manufacturing partners, has hired 175 engineers and sent them to China for training, but more than 200 engineers are needed for the plant.

The project is also dependent upon full legal approval from the city of JundiaÃ* where the production plant is being built. The city has said it is committed to the project and approval process has been accelerated in order to meet the deadlines.

Mercadante expects a locally produced iPad to be 40 percent cheaper for consumers than the imported version. Brazil has steep import tariffs that can as much as double the cost of consumer electronics.

In April, Mercadante said negotiations were underway with Apple and Foxconn to begin iPad production with a tentative start date of the end of November.

Another Brazilian official has said that the Foxconn unit there will produce as many as six million iPads and generate four to five thousand new jobs by the time it reaches full capacity in three to four years.

Foxconn is also said to be considering a $12 billion investment toward new facilities in the country. According to one report, the company has sent a list of requirements, which includes requests for financial support from the Brazilian National Development Bank and government help in finding investors, to officials as part of the negotiations.

Last month, a Foxconn iPad polishing plant in Chengdu, China experienced an explosion that killed several workers. The planted reopened early this month after an investigation into the incident.

iPad 2 ad

Apple on Friday posted a new ad for the iPad 2 on its website and YouTube channel. Entitled "Now," the ad highlights new opportunities made possible by the touchscreen tablet.

"Now we can watch a newspaper, listen to a magazine, curl up with a movie and see a phone call," the ad states. "Now we can take a classroom everywhere, hold an entire bookstore and touch the stars, because now, there's this."

post #2 of 56
Keep up the good work with the classy ads!

Of course some will decry the lack of lasers, non sequiturs, and Transformers tie-ins, but I think Apple's quiet style is the best in the business.
post #3 of 56
So much for free trade.

This would be a good case to study at school, because in theory tariffs don't work because they skew supply and demand, encourage trade wars and reduce home country competitiveness. Here we have tariffs lead a company to become a domestic manufacturer to increase in employment, and an increase in sales (due to reduced price) with no apparent negative affects on the country. Domestic competition is not hurt because there is no competition in tablet space (so no reduction in domestic competitiveness). Demand is not getting any lower and prices on domestic production production are not going up (there are no brazilian tablet makers that I know of).
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post #4 of 56
New plant in Brazil going online will set the path for the into of Ipad 3, but more importantly .....hopefully the quality control and manufacturing process will be better than in China.
post #5 of 56
Apple needs to crank out iPads like there's no tomorrow. Whatever the global demand is for iPads, Apple absolutely needs to fill that demand so competitor tablets can't possibly get any traction. The greater the iPad availability is, impatient consumers won't need to be looking around for substitute tablets. Fulfilling global demand seems almost impossible for one company considering that Foxconn has said that the iPad is so difficult to make. I sure hope those Brazilian workers are up to the task.

I truly hope that the iPad becomes an education staple for schools around the world. I sure wished technology like that was available when I was going to school some 50 years ago. Being able to pack dozens of eBooks/eTextbooks into a handheld device that size is just amazing. Some say the cost of an iPad is too high, but when it comes to education it surely must be worth the cost.
post #6 of 56
Quote:
Originally Posted by Constable Odo View Post

Some say the cost of an iPad is too high, but when it comes to education it surely must be worth the cost.

Yeah I find anyone with that viewpoint to be insane. $500 for a computer with this much capability, mobility and quality? We've never seen anything this good at this price before. Since when could a person get a $500 mobile PC this good at any point in the past 35 years?

No need to answer that question because it's never happened before.
post #7 of 56
Peter Coyote is a good choice for the voice in the ad.

Apple has class!
post #8 of 56
They really need this extra factory - shipping time on the iPad 2 is still not 24hrs, even after all this time. With so many sales and now with iCloud, I think PC manufacturers are really going to start feeling the pinch. But mostly sellers of cheap PCs.
post #9 of 56
And now instead of having a few million iPads manufactured every quarter we'll have a brazilian of them!!
post #10 of 56
Quote:
Originally Posted by justamacguy View Post

And now instead of having a few million iPads manufactured every quarter we'll have a brazilian of them!!

Brazilian of them.,, yes I get it,
very good
post #11 of 56
Quote:
Minister AloÃ*zio Mercadante said that Apple had planned to begin production of the table in late July, but had pushed the start date back to late August or early September, Globo (via Google Translate) reports.

LOL, table, eh? How many times did this get translated?
post #12 of 56
So a new Brazilian factory needs 3 to 4 years to ramp up to 6 million iPads per year. How then can the world ramp up to producing 200 million tablets by 2015 (http://www.appleinsider.com/articles..._future.html)? That's just inconceivable: http://bit.ly/m2maPF
post #13 of 56
Quote:
Originally Posted by justamacguy View Post

And now instead of having a few million iPads manufactured every quarter we'll have a brazilian of them!!

I dont understand. One Brazilian man instead of a few million iPads. How does that help Apple?
post #14 of 56
Apple should build factories in the US, just like Andy Grove suggested a year ago - http://bit.ly/irijEI
post #15 of 56
Quote:
Originally Posted by sheff View Post

So much for free trade.

This would be a good case to study at school, because in theory tariffs don't work because they skew supply and demand, encourage trade wars and reduce home country competitiveness. Here we have tariffs lead a company to become a domestic manufacturer to increase in employment, and an increase in sales (due to reduced price) with no apparent negative affects on the country. Domestic competition is not hurt because there is no competition in tablet space (so no reduction in domestic competitiveness). Demand is not getting any lower and prices on domestic production production are not going up (there are no brazilian tablet makers that I know of).

It's complicated. Nobody serious has ever denied that tariffs can result in improved employment within a single industry, the argument is that they damage the country as a whole. So yes, Brazil is winning a Foxxconn plant but how many iOS developers never got started due to the lack of access to devices?


Quote:
Originally Posted by ankleskater View Post

So a new Brazilian factory needs 3 to 4 years to ramp up to 6 million iPads per year. How then can the world ramp up to producing 200 million tablets by 2015 (http://www.appleinsider.com/articles..._future.html)? That's just inconceivable: http://bit.ly/m2maPF

You keep using that word. I do not think it means what you think it means
post #16 of 56
Quote:
Originally Posted by ankleskater View Post

I dont understand. One Brazilian man instead of a few million iPads. How does that help Apple?

The joke will become clear when they start making them in Gazil too.
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post #17 of 56
I just checked out the Brazilian Apple Store (online) and the cost for the 16g iPad2 there is $1033.04 when converted from Real to Dollars.Those tariffs sure do add up! If the iPad2 is produced in Brazil and the tariffs are removed, then the price will be much more reasonable and sales will surely skyrocket. This will give Apple a huge advantage against all other imported tablets that will face the steep tariffs. I wonder if Apple has some exclusive agreement with Foxconn for tablet production in Brazil.
post #18 of 56
Quote:
Originally Posted by djmikeo View Post

I just checked out the Brazilian Apple Store (online) and the cost for the 16g iPad2 there is $1033.04 when converted from Real to Dollars.Those tariffs sure do add up! If the iPad2 is produced in Brazil and the tariffs are removed, then the price will be much more reasonable and sales will surely skyrocket. This will give Apple a huge advantage against all other imported tablets that will face the steep tariffs. I wonder if Apple has some exclusive agreement with Foxconn for tablet production in Brazil.

Remember when Sony officially launched the PlayStation 2 in Brasil for R$799 (or about USD$461). Shouldn't be too hard to remember since it was only in November 2009, 3 full years after the PlayStation 3 was released to the rest of the world.
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post #19 of 56
Quote:
Originally Posted by BUSHMAN4 View Post

New plant in Brazil going online will set the path for the into of Ipad 3, but more importantly .....hopefully the quality control and manufacturing process will be better than in China.

You casually make a statement as if it is fact. Nothing could be further from the truth. Quality control and manufacturing will be "better" than in China? Current iPads and iPhones are built very well, thank you. Oh, I see, you are one of the ones likes to latch onto minor problems and claim they are "widespread" and "known".

Quality control and manufacturing will be no better or worse than in China. The article even points out that the Brazil plant was delayed because of the lack of skilled labor.

Your entire post is baloney.
post #20 of 56
Quote:
Originally Posted by djmikeo View Post

I wonder if Apple has some exclusive agreement with Foxconn for tablet production in Brazil.

Given that Apple can utilize any capacity Foxconn can build there in the next 3 years they probably have the right of first refusal over any new capacity in Brazil - but I doubt they got a complete exclusive deal - a big part of the reason that Foxconn can offer such attractive terms is because it can share infrastructure between clients and switch capacity between them as needed.
post #21 of 56
Quote:
Originally Posted by BUSHMAN4 View Post

New plant in Brazil going online will set the path for the into of Ipad 3, but more importantly .....hopefully the quality control and manufacturing process will be better than in China.

It's the same company with the same procedures so I imagine the output quality will be the same.
post #22 of 56
Spectacular ad.

It's impressive how Apple keeps churning them out.
post #23 of 56
Quote:
Originally Posted by BUSHMAN4 View Post

New plant in Brazil going online will set the path for the into of Ipad 3, but more importantly .....hopefully the quality control and manufacturing process will be better than in China.

An uncharacteristically snarky comment from you today, Bushman, especially when you yourself know it has zero foundation to support it. What's your real problem? Inquiring minds want to know.

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post #24 of 56
Quote:
Originally Posted by BUSHMAN4 View Post

New plant in Brazil going online will set the path for the into of Ipad 3, but more importantly .....hopefully the quality control and manufacturing process will be better than in China.

My guess is that Apple will have a uniform level of quality control for its component suppliers and manufacturing partners, regardless of country of origin. Those who do not meet those expectations will lose Apple's business.

It is unlikely that Apple would like the quality from one manufacturing line be significant different from those coming off another production line.

Remember, Tim Cook runs Apple's daily operations. He's not going to indulge slackers.
post #25 of 56
Quote:
Originally Posted by justamacguy View Post

And now instead of having a few million iPads manufactured every quarter we'll have a brazilian of them!!

Quote:
Originally Posted by Scafe2 View Post

Brazilian of them.,, yes I get it, very good

Hah! This will bring a whole new meaning to when your girlfriend or gay (or straight) friend says, "I'm off to get my Brazilian". You'll have to ask, "Is that at the Apple Store or the Spa?"
post #26 of 56
Quote:
Originally Posted by cloudgazer View Post

It's complicated. Nobody serious has ever denied that tariffs can result in improved employment within a single industry, the argument is that they damage the country as a whole. So yes, Brazil is winning a Foxxconn plant but how many iOS developers never got started due to the lack of access to devices?

Let me tell you the story of Malaysia. One of our most protected industries is automobile manufacturing. This is why a KIA Forte and Honda City starts at USD $25,000 with Honda Accords, Civics at over USD $30,000 and of course BMW 3 series starting from the USD $50,000 mark (it starts from USD $30,000 in the US). Remember this is in a country where USD $12,000 a year is considered a decent middle-income salary.

The idea was to protect the national car industry as it started out in the 80's. The price protection/tariffs/whatever are still there 30 years later. Pop quiz: have any of you heard of a Saga, Persona, Kancil, Viva or Myvi from our two main manufacturers, Proton and Perodua? No? That's because they're nothing short of laughable, especially for the local price of USD $10,000 to over $20,000 for them. They are exported to some countries and Proton had a good run for a while in the UK but in this decade I doubt they'll be able to compete globally with Chinese, Indian and of course Japanese manufacturers.

So what do Malaysians get out of this? Nothing. A barely surviving domestic automobile industry churning out borderline crap which you are forced to buy since it's the only thing that's available, ludicrously expensive Japanese and European and even Chinese cars, and almost zero foothold in the global automotive market. Oh, Proton owns (and has sunk billions) into the fancy schmancy Lotus Group, for what reason I have no clue. Lotus has indicated they want to tie up with Toyota now and break free from Proton.

I'm really not sure how we still manufacture a ton of AMD and Intel CPUs, but if that ever dries up that will be a big chunk of manufacturing gone from the country.

Quote:
Originally Posted by ankleskater View Post

So a new Brazilian factory needs 3 to 4 years to ramp up to 6 million iPads per year. How then can the world ramp up to producing 200 million tablets by 2015 (http://www.appleinsider.com/articles..._future.html)? That's just inconceivable: http://bit.ly/m2maPF

In 2013 following alien visitation we will have the technology to manufacture things that manufacture things. In 2015 iPad "baby showers" will become commonplace when your old iDevice manufactures a new iPad for you. In 2035 all self-replicating devices will become self-aware and wipe out the human race.
post #27 of 56
Quote:
Originally Posted by Joseph L View Post

Maybe the factories already exist, and need not be created from scratch? Maybe they already have buildings and dorms and parking lots and machine tools and skilled workers and loading bays and trucks and trains and ports and cargo ships and distribution channels and everything already set up?

Instead of hacking a new factory out of malaria-infested swamps? Dunno. Doesn't seem that the two situations are even remotely comparable.

Brazil, according to '60 Minutes' on TV, has a better Economy than the US. In world rankings for the coming years, they rank second after China, followed by South Korea, then the US (if at all).
They make and sell jet planes and will be the site of the next World Olympics. It's also the Plastic Surgery capital of the world and produces more Ms. Universe winners year after year. If they can build an iPad like Gisele Bundchen, I'll be taking one to bed.
post #28 of 56
Quote:
Originally Posted by ankleskater View Post

So a new Brazilian factory needs 3 to 4 years to ramp up to 6 million iPads per year. How then can the world ramp up to producing 200 million tablets by 2015 (http://www.appleinsider.com/articles..._future.html)? That's just inconceivable: http://bit.ly/m2maPF

I don't think the idea is to produce 200 million in one year ... maybe 50 million per year ... the 200 million will be the total of users.
post #29 of 56
Quote:
Originally Posted by Constable Odo View Post


I truly hope that the iPad becomes an education staple for schools around the world. I sure wished technology like that was available when I was going to school some 50 years ago. Being able to pack dozens of eBooks/eTextbooks into a handheld device that size is just amazing. Some say the cost of an iPad is too high, but when it comes to education it surely must be worth the cost.

It's not that simple. Let's take New York City. There are 1.1 million students in the public school system. At $500 each, that's a $550 million investment. But it's really much more because some of those Pads would get stolen or broken (my guess would be 20% per year). You would then need a support team, probably at least one resource per school. And then you would need additional iPads each year for the new students (unless you're not going to let the kids keep them.) And then there's the issue of security. If the kids walked around with them, they would be targets for muggers, etc.

Furthermore, it only becomes an educational device if the kids actually read the textbooks and ebooks that are on the device. And what is more likely is that the kids would download a bunch of free games and the like and spend all their time doing that, tweeting, etc.

Also, for younger kids, putting pen/pencil to paper is an important cognitive skill that leads to brain development in ways that typing on a keyboard does not.

So, in essence, you're spending upwards of $600 million so that the kids don't have to carry paper, which actually, most never do anyway. I see even high school kids coming off the subway and most usually don't even carry a notebook (and no, they don't have lockers at school).

I think the mantra that technology improves education is a canard. Math and reading scores have been dropping across the country for years in spite of technology. One might make the case that technology actually hurts literacy because with all the time spent on a computer or smartphone doing trivial tasks (like browsing, tweeting, playing games, listening to bad music, etc.), kids are not reading, writing, studying history or doing any mathematics.
post #30 of 56
Quote:
Originally Posted by bmovie View Post

Brazil, according to '60 Minutes' on TV, has a better Economy than the US. In world rankings for the coming years, they rank second after China, followed by South Korea, then the US (if at all).

Erm - no, just no. Maybe in 50 years, barely possibly in 20 years, but right now or in the near term - no.

Consider median household income at PPP: Brazil isn't even on the list, because it's lower than Mexico

What about total GDP (at PPP) -well that's better, then they're just below the UK at number 8, but not even close to the US or China.
post #31 of 56
Quote:
Originally Posted by _Hawkeye_ View Post

Peter Coyote is a good choice for the voice in the ad.

Apple has class!

Steve B. will pick Fran Drescher for the voice over in the Windows 8 tablet ad.
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post #32 of 56
I am waiting for a Brazilian iPad, it is sexier.
post #33 of 56
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Originally Posted by xZu View Post

I am waiting for a Brazilian iPad, it is sexier.

To clean it you just apply wax and peel it off...
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post #34 of 56
Brazil operates with a cowardly protectionist policy and an overvalued currency. When the city of Rio De Janeiro asked Steve Jobs to open up the first Apple retail store in that country in time for the 2020 Olympics, Jobs refused.
post #35 of 56
Quote:
Originally Posted by Apple ][ View Post

Brazil operates with a cowardly protectionist policy and an overvalued currency. When the city of Rio De Janeiro asked Steve Jobs to open up the first Apple retail store in that country in time for the 2020 Olympics, Jobs refused.

Erm, it's not clear but from the way you phrase that it seems like you think that the overvalued currency is something the Brazilians want. You realize from an import/export perspective an overvalued currency is a bad thing right? Hence why China is careful to maintain an undervalued currency and why Brazil is threatening capital controls.

If I have misunderstood your gist then apologies.
post #36 of 56
Quote:
Originally Posted by cloudgazer View Post

It's complicated. Nobody serious has ever denied that tariffs can result in improved employment within a single industry, the argument is that they damage the country as a whole. So yes, Brazil is winning a Foxxconn plant but how many iOS developers never got started due to the lack of access to devices?

They could just develop for the iPad simulator on any mac. I think this case is an outlier because there is no other tablet maker at the time with any significant piece of the market other than apple.

Professor pointed out the dead weight created by the tariff, but that was in affect only while apple was a "foreign company". Now the tariff is simply keeping apple in the country. But it will hurt android makers as they try to sell in Brazil later on when they gain traction. But maybe they too will move to brazil, once again becoming a benefit.

I think it's similar to china forcing all foreign firms to become 49% partners with a chinese firm to sell in china. Because of the population they get all the benefits (technology and info tranfer, employment etc) without losing any foreign firms to this barrier.
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post #37 of 56
Quote:
Originally Posted by Apple ][ View Post

Brazil operates with a cowardly protectionist policy ....

Nothing personal, but I find it interesting how calls for "Made in America" policies (which are numerous and never-ending), are patriotic but any other country doing the same thing is 'cowardly protectionism."

I'm not trying to put words in your mouth here because I don't actually know if you are an American or a protectionist, but from what I hear even on this forum, it seems that the average American basically thinks that everything should be made in America and that the government should implement policies to enforce or support this.

"Free Trade" in the USA is really just another term for "drop the protectionist barriers that keep us out of your country so we can dominate you." It's rarely practiced in reverse or even called for.

The perfect example is the Canadian soft-wood lumber industry. When 'Free Trade' with Canada was implemented, our industry started to decimate yours, so despite 'Free Trade' the US immediately put tarifs on our stuff so that your home grown industry wouldn't be blown out of the water. It wasn't fair, it wasn't "free" and it wasn't a very nice thing to do to a fellow country (a lot of people were put out of work and entire towns failed), but it happened instantly and most Americans supported it to judge by the news reports.

What Brazil is doing here is very similar to what the USA does in similar situations.
post #38 of 56
Quote:
Originally Posted by sheff View Post

They could just develop for the iPad simulator on any mac. I think this case is an outlier because there is no other tablet maker at the time with any significant piece of the market other than apple.

Professor pointed out the dead weight created by the tariff, but that was in affect only while apple was a "foreign company". Now the tariff is simply keeping apple in the country. But it will hurt android makers as they try to sell in Brazil later on when they gain traction. But maybe they too will move to brazil, once again becoming a benefit.

I think it's similar to china forcing all foreign firms to become 49% partners with a chinese firm to sell in china. Because of the population they get all the benefits (technology and info tranfer, employment etc) without losing any foreign firms to this barrier.

Another idea from the professor, these iPads could still be more expensive then if they were brought in from china without the tariffs, limiting the number of people that can buy them, even after apple moves into the country. Gonna check the prices in brazilian stores after apple moves in to see how they match up to US prices.
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post #39 of 56
Quote:
Originally Posted by island hermit View Post

Steve B. will pick Fran Drescher for the voice over in the Windows 8 tablet ad.

No, Gilbert Gottfried. He has commercial voiceover experience, having been fired as the Aflac duck.
post #40 of 56
Quote:
Originally Posted by BUSHMAN4 View Post

New plant in Brazil going online will set the path for the into of Ipad 3, but more importantly .....hopefully the quality control and manufacturing process will be better than in China.

This is kind of borderline racist IMO although perhaps you didn't intend it that way.

The iPads in Brazil will be made by the same company as they will in China, so what you are saying here is that Brazillians themselves (by reason of genetics or... ?), make less mistakes or are smarter than the Chinese or something? Ridiculous.

The quality control on Apple products, iPads included is also rather good actually. You are just seeing things through the filter of the tech press which reports on every minor gripe from every idiot in the USA that thinks he has a problem with the product.
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