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Apple may soon begin selling iPad 2 units built in Brazil

post #1 of 14
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Apple has reportedly received approval to begin selling iPad 2 units assembled by Foxconn at its new factories in Brazil in the same country.

Sales of the Brazilian-built iPad 2 units could begin in Brazil soon, according to a tipster who spoke with MacRumors. The locally assembled 16-gigabyte iPad 2, which sells for $399 in the U.S., has received the proper certification to go on sale in Brazil.

The Brazil-built iPad 2 units are expected to be available alongside regular units built in China, also by Foxconn. Apple's new third-generation Retina display iPad has apparently not yet received approval for sale, whether assembled in Brazil or China.

Apple began selling iPhone 4 units built in Brazil in their home country in February. Thus far, production has been limited to the 8-gigabyte handset model, model number "MD198BR/A," and has not extended to version of the latest-model iPhone 4S.

Foxconn has been gearing up to assemble iPads in Brazil since January, when it was granted government tax reductions and exemptions related to production. The company plans to build five new factories in Brazil to help cater to demand for the iPhone and iPad, and the facilities are expected to provide an annual run rate of nearly 400 million units within five years.


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 Apple's products in Brazil could bypass hefty import taxes the products currently face.

[ View article on AppleInsider ]
post #2 of 14
Don't we all love protectionism? Imagine if mo' nations adapted Brazil's no import, high tariff policy?
post #3 of 14
A run rate of 400 million per year sounds like far more than is needed to meet demand from Brazil itself.

Perhaps the plan is to have Brazil supply the western hemisphere (the americas and western europe) while Chinese production supplies the east (Asia, India, Australia).

The Samsung fab in Austin could feed into the Brazil assembly lines, while the Samsung fab in Korea could feed into the Chinese lines.
post #4 of 14
Quote:
Originally Posted by AppleInsider View Post

Apple has reportedly received approval to begin selling iPad 2 units assembled by Foxconn at its new factories in Brazil in the same country.

Too bad that they won't be for sale in the US. We run a trade surplus with Brazil and a trade deficit with China.
post #5 of 14
What about all of the Apple rhetoric that because all the suppliers are in Asia, they have to build in Asia.... Didnt Steve Jobs say that to Obama?

So, if that were true, how are they able to produce 400 million units in Brazil when it can't be done in the US?
post #6 of 14
is there any difference between the ones manufactured in Brasil and the ones manufactured in China? I think they are exactly the same. So, what's this fuss about (for the rest of the world, as they may sell cheaper in Brasil eventually)?
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post #7 of 14
Quote:
Originally Posted by skyzlmt View Post

What about all of the Apple rhetoric that because all the suppliers are in Asia, they have to build in Asia.... Didnt Steve Jobs say that to Obama?

So, if that were true, how are they able to produce 400 million units in Brazil when it can't be done in the US?

Don't forget though, that there are plenty of dirt-poor starving people in Brazil who can be exploited by the multinational industrialists.
post #8 of 14
Quote:
Originally Posted by skyzlmt View Post

What about all of the Apple rhetoric that because all the suppliers are in Asia, they have to build in Asia.... Didnt Steve Jobs say that to Obama?

So, if that were true, how are they able to produce 400 million units in Brazil when it can't be done in the US?

Good point. If I recall correctly, the argument had to do with the density of related manufacturing capacity-- that the giant screw and nut guys down the street could spin up to make tens of millions of special order fasteners in a few days.

Does Brazil have anything like that? Is the new Foxconn plant located in a manufacturing district that gives them similar access to parts? If not, it would appear that that particular line of reasoning would be specious (although there are of course plenty of other reasons that manufacturing in the US is difficult to impossible).
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post #9 of 14
Quote:
Originally Posted by skyzlmt View Post

What about all of the Apple rhetoric that because all the suppliers are in Asia, they have to build in Asia.... Didnt Steve Jobs say that to Obama?

So, if that were true, how are they able to produce 400 million units in Brazil when it can't be done in the US?

Remember this is Foxconn not Apple.
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post #10 of 14
Quote:
Originally Posted by digitalclips View Post

Remember this is Foxconn not Apple.

I think in this scenario... Foxconn and Apple are considered one and the same.

Brazil wouldnt let APPLE sell its products there, unless manufactured there. APPLE told foxconn to build facilities in Brazil.

Believe me... If Apple announced they were ponying up a billion or two for a US plant and asked Foxconn to run it, it would happen.
post #11 of 14
They would have to get some serious US Government subsidies to cover it. That's how businesses do it. They leverage the Government's subsidies for opening up employment opportunities.
post #12 of 14
Quote:
Originally Posted by I am a Zither Zather Zuzz View Post

Don't forget though, that there are plenty of dirt-poor starving people in Brazil who can be exploited by the multinational industrialists.

Their cost of living is much less than here and they are a nation that isn't as advanced. It's one of the symptoms of a Global economy where there is a BIG difference between countries, their respective currencies, cost of living, etc.

At least they are hiring in Brazil and they have to adhere to their local labor laws and every country has different labor laws to deal with, different laws, etc.
post #13 of 14
400 million units annually? Bwahahahhahhahahha!

That is roughly triple current global production of i-devices. In Brazil! What rubbish. If there is one thing I hate, it's rent seekers and their bullsh***.
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post #14 of 14
Quote:
Originally Posted by I am a Zither Zather Zuzz View Post

Too bad that they won't be for sale in the US. We run a trade surplus with Brazil and a trade deficit with China.

I thought countries wanted balanced trade. A surplus is where you ship too much; and a deficit is where you receive too much...
oh well, economics is one of my weak points...
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