Sketchy report claims Apple plans to manufacture iPhone SE in Brazil

Posted:
in General Discussion
Based on Apple Store images, a new Brazilian report infers that Apple may assemble the iPhone SE in the region, in part to circumvent local import laws that drive up the retail cost.

Notice the text at the bottom of the white iPhone SE's rear.
Notice the text at the bottom of the white iPhone SE's rear.


It's possible that Apple may be planning to assemble at least some of its iPhone SE units within Brazil. If it does, then that would probably mean it escapes having to pay import costs within Brazil -- and would also contribute a little to lessening Apple's dependency on factories in China.

The claim has been made by the Brazilian publication iHelpBR, which says (in translation) that "Apple itself indicates that the iPhone SE 2020 will be assembled in Brazil."

iHelpBR says that images of the iPhone SE on the Apple Brazil website include at least one where the words "Industria Brasileira" are written on the back. Literally translated as "Brazilian industry," it effectively means "Made in Brazil."

The publication shows a screengrab from the Pre-Order page. It's the graphic that appears after you have picked a color. At least the white model showed this text.

However, the images on Apple Brazil site currently show no such marking. The publication claims that within a short time after its report, Apple replaced the images.

If correct, though, assembling the iPhone SE in the country would have benefits for Apple and for its customers. There is a significant difference between assembly and manufacture, however. iHelpBR compared the costs of existing imported iPhones.

A straight currency conversion, without any fees, would see the $399 iPhone SE sell in Brazil for approximately 2,113 reals. As it is, Apple's pre-order page pegs that phone at 3,699 reals -- or the equivalent of $700.

It's common for iPhones to cost more overseas, in part because other countries include taxes in the retail price. So in the UK, for instance, a $399 iPhone SE sells for GBP 419, or the equivalent of $523, partly because of the country's 20% value-added tax.

iHelpBR, however, notes that at least some of the extra costs for Brazilian buyers is down to how that country charges import duty on certain items. An iPhone that was assembled in Brazil would cost less there. It would still be more expensive than if the entire phone were actually manufactured in the region, however.

Apple could see this as a way to either reduce its dependency on Chinese assembly, or to make the iPhone SE more appealing in Brazil. However, it would be most likely to make that decision to provide a cheaper option now, when the iPhone SE is first going on sale.

That said, Brazil did take many years to support Apple Pay.

Comments

  • Reply 1 of 9
    wood1208wood1208 Posts: 2,741member
    Manufacturing SE in China,India,Brazil doesn't matter; does it ?
  • Reply 2 of 9
    melgrossmelgross Posts: 33,254member
    Ah, this is nothing new. We’ve been reading that Apple would be manufacturing, via Foxconn, in Brazil for a good 5 years now. Still waiting. Apparently the work ethic in Brazil is very different from that in Asian countries, and Foxconn demurred.

    i thought I read that at least some SE assembly was being done in India, maybe most, or even all of it.
    edited April 2020 watto_cobra
  • Reply 3 of 9
    hentaiboyhentaiboy Posts: 1,249member
    melgross said:
    Apparently the work ethic in Brazil is very different from that in Asian countries, and Foxconn demurred.
    Or perhaps it’s that Brazil has stronger labour laws.
    Carnage
  • Reply 4 of 9
    melgrossmelgross Posts: 33,254member
    hentaiboy said:
    melgross said:
    Apparently the work ethic in Brazil is very different from that in Asian countries, and Foxconn demurred.
    Or perhaps it’s that Brazil has stronger labour laws.
    Ha ha.
    Carnage
  • Reply 5 of 9
    wood1208 said:
    Manufacturing SE in China,India,Brazil doesn't matter; does it ?
    Uh, yeah it does.  China is the largest and most powerful communist country in the world and the biggest threat to the United States by far.  I think it's pretty clear that China is the present day evil empire.  Why would you want any manufacturing by American companies done there at all?  IMHO, we should pull of of China completely.  Would you have wanted American companies to manufacture stuff in the Soviet Union during the cold war?  I don't think so.
    edited April 2020 watto_cobra
  • Reply 6 of 9
    melgrossmelgross Posts: 33,254member
    wood1208 said:
    Manufacturing SE in China,India,Brazil doesn't matter; does it ?
    Uh, yeah it does.  China is the largest and most powerful communist country in the world and the biggest threat to the United States by far.  I think it's pretty clear that China is the present day evil empire.  Why would you want any manufacturing by American companies done there at all?  IMHO, we should pull of of China completely.  Would you have wanted American companies to manufacture stuff in the Soviet Union during the cold war?  I don't think so.
    It’s not the same thing. First of all, there has never been a communist country. There have been socialist countries governed by a communist party which is a very different thing.

    china is really an odd duck. In a number of ways, its views are more like the right wing here in our country than a communist one. It’s a combination of old line socialism and free market economics. As I say, odd.

    we can’t survive in this world by pretending that we can just pull back from what we don’t like. We never manufactured in the old Soviet Union for a number of reasons. One was that they had no real manufacturing industry. The second was that the world was a very different place. The Soviets were far behind us in most every important way. That’s not true here. Even now, Russia can’t manufacture most goods. If we want much of what we buy, at anywhere near what we now pay, we don’t yet have much choice. India is the best long term bet, but they are hopeless. Who knows how long it will take for them to get their act together. And really, there’s no guarantee they will act any better. Other countries are simply too small.

    american, and particularly European workers won’t do what is needed to produce many mass produced goods. That boat sailed in the middle of the last century.

    so make up your mind as to what you are willing to give up, and how much more you are willing to pay for the rest.
    edited April 2020 Carnagewatto_cobra
  • Reply 7 of 9
    entropysentropys Posts: 3,461member
    The reason iPhones are more expensive in Brazil is import tariffs. These are meant to encourage local manufacture and local jobs. India is the same, and companies do look at local assembly or more easily, graft to the right politician or bureaucrat to get around the tariffs.
    I used to be quite against it. In the end it just makes locals poorer and they don’t get access to the good stuff at reasonable prices.

    However, if this current panic over COVID-19 has taught us anything, there are strategic reasons to make sure that not all your eggs are sourced from the same henhouse, so to speak, especially if the henhouse in question rigs its labour market, IP laws and currency to make sure the eggs from its henhouse look cheaper than alternative chook farms. Let alone needing us to turn a blind eye to how it treats its hens.





    edited April 2020 watto_cobra
  • Reply 8 of 9
    k2kwk2kw Posts: 2,068member
    melgross said:
    wood1208 said:
    Manufacturing SE in China,India,Brazil doesn't matter; does it ?
    Uh, yeah it does.  China is the largest and most powerful communist country in the world and the biggest threat to the United States by far.  I think it's pretty clear that China is the present day evil empire.  Why would you want any manufacturing by American companies done there at all?  IMHO, we should pull of of China completely.  Would you have wanted American companies to manufacture stuff in the Soviet Union during the cold war?  I don't think so.
    It’s not the same thing. First of all, there has never been a communist country. There have been socialist countries governed by a communist party which is a very different thing.

    china is really an odd duck. In a number of ways, its views are more like the right wing here in our country than a communist one. It’s a combination of old line socialism and free market economics. As I say, odd.

    we can’t survive in this world by pretending that we can just pull back from what we don’t like. We never manufactured in the old Soviet Union for a number of reasons. One was that they had no real manufacturing industry. The second was that the world was a very different place. The Soviets were far behind us in most every important way. That’s not true here. Even now, Russia can’t manufacture most goods. If we want much of what we buy, at anywhere near what we now pay, we don’t yet have much choice. India is the best long term bet, but they are hopeless. Who knows how long it will take for them to get their act together. And really, there’s no guarantee they will act any better. Other countries are simply too small.

    american, and particularly European workers won’t do what is needed to produce many mass produced goods. That boat sailed in the middle of the last century.

    so make up your mind as to what you are willing to give up, and how much more you are willing to pay for the rest.
    I was hoping that Trump would impose 100% tariffs on Chinese electronics.   I have no problem with that, but he go chicken and went easy because he didn't want to upset his wall street backers.   In the end it doesn't matter as his stock market has crashed anyway and we still have no jobs from China.
  • Reply 9 of 9
    melgrossmelgross Posts: 33,254member
    k2kw said:
    melgross said:
    wood1208 said:
    Manufacturing SE in China,India,Brazil doesn't matter; does it ?
    Uh, yeah it does.  China is the largest and most powerful communist country in the world and the biggest threat to the United States by far.  I think it's pretty clear that China is the present day evil empire.  Why would you want any manufacturing by American companies done there at all?  IMHO, we should pull of of China completely.  Would you have wanted American companies to manufacture stuff in the Soviet Union during the cold war?  I don't think so.
    It’s not the same thing. First of all, there has never been a communist country. There have been socialist countries governed by a communist party which is a very different thing.

    china is really an odd duck. In a number of ways, its views are more like the right wing here in our country than a communist one. It’s a combination of old line socialism and free market economics. As I say, odd.

    we can’t survive in this world by pretending that we can just pull back from what we don’t like. We never manufactured in the old Soviet Union for a number of reasons. One was that they had no real manufacturing industry. The second was that the world was a very different place. The Soviets were far behind us in most every important way. That’s not true here. Even now, Russia can’t manufacture most goods. If we want much of what we buy, at anywhere near what we now pay, we don’t yet have much choice. India is the best long term bet, but they are hopeless. Who knows how long it will take for them to get their act together. And really, there’s no guarantee they will act any better. Other countries are simply too small.

    american, and particularly European workers won’t do what is needed to produce many mass produced goods. That boat sailed in the middle of the last century.

    so make up your mind as to what you are willing to give up, and how much more you are willing to pay for the rest.
    I was hoping that Trump would impose 100% tariffs on Chinese electronics.   I have no problem with that, but he go chicken and went easy because he didn't want to upset his wall street backers.   In the end it doesn't matter as his stock market has crashed anyway and we still have no jobs from China.
    That makes no sense at all. Many products can’t be made here in any realistic way. Most major American companies manufacture at least part of the product lines there. If he did what you wanted, we would have a major crash of not just the stock market, but company sales as well. Our economy would suffer greatly.

    do you have any understanding of how the world economy works, because you don’t seem to.
    watto_cobra
Sign In or Register to comment.