Apple Reportedly Ready to Begin iPad Production in Brazil


MacStories points to an article from Brazilian Internet portal UOL covering comments from Brazilian Minister of Science and Technology Aolizio Mercadante revealing that Apple is ready to begin production of the iPad in Brazil. Deliveries are said to be set to begin in December. From a Google translation:
The Minister of Science, Technology and Innovation, Mercadante, said on Tuesday (13) that Apple plant in Jundiaí (SP) is ready to be opened and produce iPads that reach the market until December, during a hearing of the Commission Economic Affairs (CAE) of the Senate.

"At first many doubted, but it will be the first time that the company will produce iPads outside Chinese territory. We are taking a big step for digital inclusion in the country," he said.
Reports first surfaced back in April claiming that Apple's manufacturing partner Foxconn was set to invest up to $12 billion in production facilities in Brazil, offering a means to circumvent high import taxes on electronics products in the world's fifth most populous country. Initial plans had called for production to begin by November, but Foxconn had hoped to accelerate the timeline to begin production in July. That acceleration appears to have not been possible, with production plans returning to close to the original schedule.

Related Roundup: iPad
Tag: Brazil
Buyer's Guide: iPad (Buy Now)

Top Rated Comments

(View all)
Avatar
106 months ago
"Designed by Apple in California. Assembled in Brazil"
Rating: 9 Votes
Avatar
106 months ago

Or labour costs in China are now higher than Brazil.

Just hope that Foxconn didn't clear rainforest for land to build the factory on!


I live in Brazil.
Don't Worry. Brazil has a good control of the rain forest in the south and the coast of the country, and Jundiai already is an industrial region. The region where we have problems to control the forest are in the Amazon and it's boundaries, that is really far from Jundiai, about 3000km.
Rating: 6 Votes
Avatar
106 months ago
That ought to placate the folks who’ve been pleading with Apple to move production back to America. ;)
Rating: 5 Votes
Avatar
106 months ago

Or labour costs in China are now higher than Brazil.

Just hope that Foxconn didn't clear rainforest for land to build the factory on!


It's always interesting to read such misinformed comments from US readers, as if Brazil was the jungle and nothing else. Almost NOBODY lives in the Amazon, Sir, and no high-tech industries exist in the rainforest region, apart from the customs-free industrial zone set up in the Amazon State capital Manaus more than 40 years ago.

Actually more than half of the Brazilian population is already "middle class", not to mention its very rich elite...Brazil is the 4th biggest market in the world for cars, and would be EVEN bigger were it not for the very high taxes that plague the country.

And before some person starts saying something about Brazil being the next "China sweatshop", it's important to highlight that the country has one of the highest labor costs on Earth, as well as a very extensive safety net - this is why you don't see "Made in Brazil" stickers like you do for China, Bangladesh, Poland, Romania and other low-cost places. In fact, the Brazilian labor force today is probably more expensive than the US one, notably at executive level (CEO/Director-level salaries in Brazil are the highest in the world). Comparisons with labor costs in China are, in any case, totally unwarranted since Brazilian labor is MUCH more expensive than in Asian sweatshops.

The main objective of this initiative is not simply to create jobs: it's to foster the high-tech sector and give much easier access to tablets as the next big thing in digital inclusion policies - IMPORTED electronics are very expensive in Brazil, and with local production (even if many components are still imported), the final price can fall by at least 30% in there because of tax reductions...a great achievement already.

As for Apple/Foxconn, they secure a manufacturing spot in a safe, democratic and Western powerhouse, while tapping the gigantic local market big time - the usual Brazilian mongrel dogs (those who never say anything positive about the country) may say that this is just an "assembly" factory using imported parts - fact is: access to technology is crucial for Brazil's definitive entry into the developed Western world, and the network/indirect economic benefits from having a Foxconn plant there will definitely lead to at least some degree of technology transfer and expertise.

And I assure you will NOT hear about "Chinese suicides" down there - we are far more protected and expensive than the usual Asian or even US employee.

p.s.: MR editors, PLEASE correct the name of the Brazilian Minister: it is Aloízio Mercadante..!
Rating: 3 Votes
Avatar
106 months ago
Don't worry. Soon labor costs in the US will be as low as anyone's, no benefits and environmental standards will go back to the 1800's so that we can compete.

Or, put up trade barriers until they catch up to us...
Rating: 3 Votes
Avatar
106 months ago
For those who don't know, import duty in Brazil is often higher than 50%. This is the result of a long standing policy by the government to encourage foreign companies to fabricate in Brazil if they want to sell there. There are a lot of highly educated people in Brazil, but the problem is no jobs. One can only assume that the Foxconn factory is a direct result of this policy. Harley Davidson assembles bikes in Manaus, as does KTM, thus avoiding this import duty.

Hopefully, for those of us living in Brazil, this will now mean iPads at reasonable prices, and I'd be deliriously happy if this factory expanded to include iPhone and maybe even some Mac assembly too.
Rating: 3 Votes
Avatar
106 months ago
Foxconn will increase production speed by having their workers do their tasks at rhythm of Samba. :D
The Chinese can't beat that!
Rating: 2 Votes
Avatar
106 months ago

I don't know, since this production model is created by the US, conducted by mostly by US companies. Most of the money come back to the US, believe me. Watch Apple cash reserves.


Believe me, "Most of the money" doesn't include $12 billion that Apple is holding offshore because they don't want to pay US taxes on it.

http://www.nytimes.com/2011/06/20/business/20tax.html?pagewanted=all

As the second-largest-cap corporation in all the world, and with all the cleverness at Apple, I cannot understand why they can't come up with a profitable business plan to spend a measly $1B of their $70B of cash and open a single factory in the US (even in a shuttered old ex-factory building somewhere) to even just do final assembly of Chinese parts, and employ a few thousand Americans.

For decades, every Apple product sale has been enriching a lot of Chinese and Taiwanese, just like every WalMart sale does.

My 2c.
Rating: 2 Votes
Avatar
106 months ago

Foxconn will increase production speed by having their workers do their tasks at rhythm of Samba. :D
The Chinese can't beat to that!

:)
Rating: 1 Votes
Avatar
106 months ago

What kind of comment is that when Apple and it's Founder have a loathing for such actions?


What kind of naive comment is the one you made!

Do you know that the Chinese factory in which Apple products are made is built on a Baby/child graveyard that was used right up to the day building began, babies being buried there thanks to the one child policy, that our leaders have never directly objected too. I own Apple products, plus Jobs is a genius, but business is business... don't be so naive with the green thing.

(PS you're as green a company as you want the public to believe you are)
Rating: 0 Votes
[ Read All Comments ]