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Apple begins selling iPhone 4 units built in Brazil

post #1 of 52
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Apple has begun selling 8-gigabyte iPhone 4 models manufactured in Brazil to customers in that country, though prices on the units remain unchanged.

Evidence that Foxconn was set to begin assembling iPhone 4 models in Brazil surfaced last October before the iPhone 4S was unveiled, with a new model codenamed "N90A" captured in a picture. But a "made in Brazil" iPhone 4 never actually surfaced in the wild until recently.

One of the first Brazil-manufactured iPhone 4 models was discovered by Portuguese-language website Meio Bit (via MacRumors). Apple has quietly begun shipping the units to Brazilian customers who order their handset online.

The black 8GB iPhone 4 manufactured in Brazil carries the model number MD128BR/A, while the white model is MD198BR/A, both ending in "BR" to identify the country.

While the iPhone 4 models are now being made and sold in Brazil, there is no evidence that Apple has begun building its newest model, the iPhone 4S, in that country.

Though iPhone 4 units are now being assembled in Brazil, customers there have not seen any savings on the price of the unit. While U.S. customers can buy an unlocked 8GB iPhone 4 contract-free for $549, the same phone costs over $1,000 in Brazil.


Foxconn's Jundiai, Brazil manufacturing plant


Officials in Brazil initially began pushing for Apple's products to be manufactured in their country in hopes that it would lead to lower prices for its citizens. It was said that manufacturing iPhone units in Brazil could bypass import taxes and potentially lead to significantly lower prices.

In addition to the iPhone, Foxconn is also expected to begin assembly of the iPad in Brazil in the near future. The Brazilian government has approved tax reductions or exemptions for Foxconn to incentivize tablet production.

[ View article on AppleInsider ]
post #2 of 52
I suppose until they can build all iPhones & iPads there, there could be a large discrepancy in sale prices for imported devices if they kept profit margins the same. Easier to keep the price the same (& make a few extra dollars??).
post #3 of 52
Quote:
Officials in Brazil initially began pushing for Apple's products to be manufactured in their country in hopes that it would lead to lower prices for its citizens. It was said that manufacturing iPhone units in Brazil could bypass import taxes and potentially lead to significantly lower prices.

I'm curious. Do they have to pay high import taxes on imported parts? Or do the import tarriffs only apply to finished goods?

I can't imagine many of the parts needed are manufactured locally...
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post #4 of 52
Quote:
Originally Posted by AdyB View Post

I suppose until they can build all iPhones & iPads there, there could be a large discrepancy in sale prices for imported devices if they kept profit margins the same. Easier to keep the price the same (& make a few extra dollars??).

Obviously there are other factors at work. I just saw that 1 Brazilian real is worth about .58 USD. Perhaps this disparity plays a part? What's their rate of inflation?

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post #5 of 52
The iPhone 4S was definitely snappier. These Brazilian iPhones will be definitely spicier?
post #6 of 52
The beginning of worldwide manufacturing of the iPhone...Apple insuring its stake in the future. I'm not surprised:-)
post #7 of 52
It's good to have competing nations with Chinese labor force. Stupid proview thought it had the right to ask the government to stop the exports!!!
post #8 of 52
That place looks like a high-security supermax Prison facility, in that photo. So that is where they are building the iPhones? I wouldn't wanna work there.

"Foxconn: Where dark totalitarian 1984 really is a reality."
post #9 of 52
Brazil is ok as a place to diversify. However, the cost of doing business there is much higher than China. I suspect that at the current exchange the rate, the manufacturing costs there are comparable if not higher than say Texas or the Carolinas. There is a shortage of engineers in Brazil and even skilled labor in some categories, plus hi real estate taxes, corrupt bureaucracy.

I think that with all the problems in China and elsewhere, Apple need to consider the US... even if Foxcon or Pegatron were to set up plants here, rather than Apple. Right to work states like Texas would probably give the land for dirt cheap prices, all kinds of tax holidays, cheap energy, etc. Any manufacturing would need a hi level of automation. Same thing with CPU manufacture... how about Intel, IBM, etc instead of Samsung?
post #10 of 52
Quote:
Originally Posted by WardC View Post

That place looks like a high-security supermax Prison facility, in that photo. So that is where they are building the iPhones? I wouldn't wanna work there.

That is just the way it is in Latin America. Every home or business that has anything of value in it is protected with that type of razor wire. Notice that the angle of the stanchions is pointing in rather than out. I take that to mean that they don't want the employees on the inside to get out with any goods, rather than to keep intruders out as is the normal installation. They probably don't worry so much about intruders since it is in full operation 24/7.

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post #11 of 52
China is developing so rapidly, that the workers have many other vocational choices. Chinese wages are also rising rapidly. Demand for Apple products in China is staggering. As a result Foxconn needs to have extra capacity elsewhere.
post #12 of 52
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Originally Posted by KA47 View Post

It's good to have competing nations with Chinese labor force. Stupid proview thought it had the right to ask the government to stop the exports!!!

Proview is just protecting its own copyrights.
post #13 of 52
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Originally Posted by peter236 View Post

Proview is just protecting its own copyrights.

You are just kidding, right?

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post #14 of 52
Quote:
Originally Posted by Bageljoey View Post

I'm curious. Do they have to pay high import taxes on imported parts? Or do the import tarriffs only apply to finished goods?

I can't imagine many of the parts needed are manufactured locally...

We import a lot of parts for our final products in Brazil. Anything we import, even if we absolutely cannot source it from Brazil despite our best efforts, gets a hefty duty. In addition, our products qualify for some special financing if we can achieve 65% or more in Brazil sourced material by cost and weight. I doubt that exists for the iPhone market but there are likely similar barriers/incentives that Apple and FoxConn must work with.
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post #15 of 52
Quote:
Originally Posted by Realistic View Post

You are just kidding, right?

I really hope so.
post #16 of 52
Quote:
Originally Posted by AdyB View Post

I suppose until they can build all iPhones & iPads there, there could be a large discrepancy in sale prices for imported devices if they kept profit margins the same. Easier to keep the price the same (& make a few extra dollars??).

I'm not really sure they are making a few extra dollars. it was my understanding that if they didn't make the units sold in Brazil in the country the imported ones would have gone way up in price due to import taxes. They probably didn't have to pay those taxes during a grace period because they showed the intention to play by the rules and those were the price the 'local' ones would be so long as they met the deadline which presumably they did

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post #17 of 52
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Originally Posted by SpamSandwich View Post

Obviously there are other factors at work.

Sure, even with these phones being made in Brazil there are probably still business taxes, import taxes for the parts and so on. People forget such things when they look at overseas prices. They just assume that it will be the same as the US.

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post #18 of 52



If not for the Foxcon logo, I'd swear that this was a picture of a prison.
post #19 of 52
Quote:
Originally Posted by KA47 View Post

Stupid proview thought it had the right to ask the government to stop the exports!!!

They do have the right. They did ask the government. The government replied that it would be too difficult.
post #20 of 52
I wonder if the backside of the phones will be bigger
post #21 of 52
Quote:
Originally Posted by jpellino View Post

The iPhone 4S was definitely snappier. These Brazilian iPhones will be definitely spicier?

post #22 of 52
Quote:
Originally Posted by I am a Zither Zather Zuzz View Post

If not for the Foxcon logo, I'd swear that this was a picture of a prison.

If you knew anything about the crime and murder in Brazil, you'd be wondering why it didn't look worse.
post #23 of 52
8 gig? Yikes, that's not much space.
post #24 of 52
Quote:
Originally Posted by SpamSandwich View Post

Obviously there are other factors at work. I just saw that 1 Brazilian real is worth about .58 USD. Perhaps this disparity plays a part? What's their rate of inflation?

6 per cent a year.
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post #25 of 52
Quote:
Originally Posted by AppleInsider View Post

Officials in Brazil initially began pushing for Apple's products to be manufactured in their country in hopes that it would lead to for its citizens.

This seems like a very strange comment. The only reason prices were high was because of the government imposed import duties, right?
post #26 of 52
Quote:
Originally Posted by mstone View Post

That is just the way it is in Latin America. Every home or business that has anything of value in it is protected with that type of razor wire. Notice that the angle of the stanchions is pointing in rather than out. I take that to mean that they don't want the employees on the inside to get out with any goods, rather than to keep intruders out as is the normal installation. They probably don't worry so much about intruders since it is in full operation 24/7.

That's just the way it is ANYWHERE in the world. Why would barbed wire be the exception? Even here in Switzerland we see the same thing around industrial installations...please stop this nonsense.
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post #27 of 52
Quote:
Originally Posted by brlawyer View Post

Even here in Switzerland we see the same thing around industrial installations.

Everybody has guns in Switzerland.
post #28 of 52
Quote:
Originally Posted by KA47 View Post

Stupid proview thought it had the right to ask the government to stop the exports!!!

The key to the issue of right or wrong is whether you believe Proview's argument about the proxy company to be just because we know it to be true. They didn't know it was Apple they were dealing with. They say that companies shouldn't be allowed to use fake names to trick people into asking less for IP etc. If you believe that to be a just argument then Apple should not have lied and thus Proview shouldn't have to abide by a dealing made under false pretenses and thus in bad faith. So by that argument they have every right to demand that the government not allow such violating products to exit the country and thus allow Apple to profit from their crime.

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post #29 of 52
Quote:
Originally Posted by peter236 View Post

Proview is just protecting its own copyrights.

No, as irresponsible as lawmakers are they don't offer copyright on a four letter word. It is a trademark for a miserably failed product that has not been produced in about 10 years by a company that has failed and is bankrupt. On top of all that they sold the rights to their trademark and are only now whining that they wish they had charged a higher price because of the astounding success of a product that they, Proview, had nothing to do with its design or production.

A very tawdry tale that reflects poorly on all the hard working and excellent companies. It is their option to try to pull this sort of scam, but that does not mean we have to treat it with deference.
post #30 of 52
Quote:
Originally Posted by brlawyer View Post

That's just the way it is ANYWHERE in the world. Why would barbed wire be the exception? Even here in Switzerland we see the same thing around industrial installations...please stop this nonsense.

Sorry dude. Truth hurts. I feel your pain. I don't want to go into detail about my personal knowledge of this situation but suffice it to say that razor wire isn't the same thing as barbed wire.

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post #31 of 52
Quote:
Originally Posted by brlawyer View Post

That's just the way it is ANYWHERE in the world. Why would barbed wire be the exception? Even here in Switzerland we see the same thing around industrial installations...please stop this nonsense.

Brazil does have a higher than average crime rate.

I don't remember the last time I've seen concertina wire around industrial locations like that. The worst I've seen in a while is simple strings of simple barbed wire.
post #32 of 52
Quote:
Originally Posted by charlituna View Post

The key to the issue of right or wrong is whether you believe Proview's argument about the proxy company to be just because we know it to be true. They didn't know it was Apple they were dealing with. They say that companies shouldn't be allowed to use fake names to trick people into asking less for IP etc. If you believe that to be a just argument then Apple should not have lied and thus Proview shouldn't have to abide by a dealing made under false pretenses and thus in bad faith. So by that argument they have every right to demand that the government not allow such violating products to exit the country and thus allow Apple to profit from their crime.

The Disney company bought a lot of the land for Disney World in Florida by using several dummy companies. This practice is not new, nor is it limited to Apple or tech companies. While it may be a little sneaky, it's neither illegal or unheard of. Proview getting $55,000 for the name of a product they hadn't produced in years was probably the best they could have done at the time. As others have mentioned, if the iPad had been a complete flop, it was a wast of $55k on Apple's part.
post #33 of 52
Quote:
Originally Posted by WardC View Post

That place looks like a high-security supermax Prison facility, in that photo. So that is where they are building the iPhones? I wouldn't wanna work there.

"Foxconn: Where dark totalitarian 1984 really is a reality."

As a resident of Texas, you should be an expert in these matters.
post #34 of 52
I'm getting numerous updates for app icons only, wonder if it has to do with the redying of the new iPad resolution.
post #35 of 52
WTF is wrong with AI allowing these cheap blinking HTML5 animations that are replacing Flash. Is HTML5 the new Flash? Do I, who happens to be overweight, have too be seeing "In your face" blinking insults? I use ClicktoFlack for this very reason and now they're going to get around my block with HTML5? Even the Flash ads were better made than these cheap shots.
post #36 of 52
Quote:
Originally Posted by I am a Zither Zather Zuzz View Post




If not for the Foxcon logo, I'd swear that this was a picture of a prison.

There's a prison and several plants/factories where I live. This is definitely a factory. Only one row of fences, fences too short, building too close to the fences, parking inside the fences. I've seen some aerospace industry plants with more impressive security.

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post #37 of 52
There you go... they have to pay almost twice as much to have it made locally. Screw that, I'll have mine made in Asia.
post #38 of 52
Quote:
Originally Posted by ascii View Post

There you go... they have to pay almost twice as much to have it made locally. Screw that, I'll have mine made in Asia.

They're paying the same. The root problems are still unaddressed, which is the import taxes on electronics. If the components they bring in are still taxed ridiculously, then there's only so much savings to be had by assembling them locally. Assembly is a small portion of the cost of making a product.
post #39 of 52
Hope they work out these kinks and soon. It would be really good for apple to diversify where it assembles it's products.
post #40 of 52
Quote:
Originally Posted by Apple Inside Her View Post

I wonder if the backside of the phones will be bigger



(I don't think anyone else got this)
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