ipad 2 brazil
Reuters reports that Foxconn's previously-announced $12 billion plan to begin producing iPads in Brazil appears to be faltering as Foxconn and the Brazilian government have been unable to reach an agreement.

A much-hyped $12 billion plan for Taiwanese manufacturer Foxconn to produce iPads in Brazil is "in doubt" due to stagnant negotiations over tax breaks and Brazil's own deep structural problems such as a lack of skilled labor, government sources tell Reuters.

[...]

"The talks have been very difficult, and the project for a Brazilian iPad is in doubt," one official said. "(Foxconn) is making crazy demands" for tax breaks and other special treatment, the official added.

Reports in the Brazilian media have indicated that the country's development bank is on the verge of withdrawing funding for the project, a move that would likely kill the plan as it currently stands.

One option could be for Foxconn or a Brazilian partner to simply assemble foreign-made parts to the iPad, rather than producing screens and other components locally. Other steps could also be taken to reduce the project's scale, which may simply have been too ambitious for all parties.

High import tariffs and taxes push the entry-level iPad price to approximately $900 in Brazil, nearly double the model's $499 price tag in the United States. By moving production into Brazil, Apple would be able to address the country's market of 190 million consumers at lower price points.

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

Top Rated Comments

fredfnord Avatar
146 months ago
Just FYI

Unfortunately i don't think the US workers would like the same treatment the china workers get. Im sure there is a reason they committed suicide, and i don't think its high wages and a lovely working life that did it. See Mike Daisey's show, The Agony and the Ecstasy of Steve Jobs

Just to reiterate a point that has already been made a lot of times over the past couple of years: the workers at Foxconn committed suicide at a rate significantly lower than that of the general population in China. And those suicide rates are the official Chinese ones, which if anything would probably be understated with regard to suicide in the general populace, because they certainly do not want to look bad.

(Unfortunately, we do not have numbers for China broken down by age. So it may well be that Foxconn's suicides *were* out of the ordinary, for people of that age. However, since we don't know, it seems somewhat irresponsible to assume that that is the case.)

If a company in the US had, say, 50,000 employees, and those employees committed suicide at 2/3 the rate that other people in the US commit suicide, would we hold a Spanish inquisition?

This is not to say that Foxconn is a great place to work, or that there aren't real problems. All I'm saying is, using this as evidence that there are real problems is either slightly ignorant or extremely disingenuous.
Score: 5 Votes (Like | Disagree)
The 801 Avatar
146 months ago
For those who want the ipad produced in US: Lets face it, the ipad is a hand built electronic product. It is not designed for automated assembly. Go look at the teardowns. Its one reason it is so well made, I am afraid to say. No American could handle the workplace necessary to assemble it. Unless you were willing to double the price.
Good, Fast, Cheap -- Pick two.
Score: 4 Votes (Like | Disagree)
eghedini Avatar
146 months ago


$900 for a baseline iPad? Wow that's freaking expensive

You're damn right. I am Brazillian, and I'm sick with the tax policy applied here. This week a chinese car manufacurer dropped all plans to build a factory here because our "magnific" politics raised the tax over cars. 13,000 jobs trown away! I just can't get it in my mind!
Score: 4 Votes (Like | Disagree)
fabian9 Avatar
146 months ago
Dear Foxconn,

Canada is also very close to the USA.

Signed,
skilled workers.

But producing in Canada won't solve Apple's problem, which is high import taxes when importing products to Brazil. Producing in Canada would probably also triple the unit production cost because wages are way higher in Canada compared to Brazil...
Score: 4 Votes (Like | Disagree)
Yvan256 Avatar
146 months ago
Dear Foxconn,

Canada is also very close to the USA.

Signed,
skilled workers.
Score: 4 Votes (Like | Disagree)
wordoflife Avatar
146 months ago
$900 for a baseline iPad? Wow that's freaking expensive
Score: 4 Votes (Like | Disagree)

Popular Stories

iphone 14 pro hands snowflakes 1

Best Black Friday iPhone Deals Still Available

Wednesday November 23, 2022 1:55 pm PST by
Cellular carriers have always offered big savings on the newest iPhone models during the holidays, and Black Friday 2022 is no different. Even though Black Friday is officially over, we're still tracking notable offers on the iPhone 14 and iPhone 14 Pro devices from AT&T, Verizon, and T-Mobile. For even more savings, keep an eye on older models like the iPhone 13. Note: MacRumors is an...
General Black Friday Deals 2022 Green

All the Apple Black Friday Deals You Can Still Get

Friday November 25, 2022 4:40 am PST by
Although Black Friday is now technically over, many Apple products are still seeing major discounts through the weekend as we head into Cyber Monday. In this article, you'll find every Apple device with a notable Black Friday sale that's still available. We'll be updating as prices change and new deals arrive, so be sure to keep an eye out if you don't see the sale you're looking for yet. Note:...
ipad holiday bulbs

Best Black Friday iPad Deals Still Available

Thursday November 24, 2022 12:25 pm PST by
Black Friday deals have been in full swing for the better part of a month, and even with the shopping holiday officially over, we're still seeing solid discounts on Apple devices. We're highlighting the best sales for all of Apple's product lines, and in this article you'll find the best Black Friday sales on iPad, iPad Pro, iPad Air, and iPad mini. Note: MacRumors is an affiliate partner with ...
airpods pro 2

Apple Engineer Addresses Lack of Lossless Support on New AirPods Pro

Friday November 25, 2022 2:58 am PST by
An Apple engineer has addressed the lack of lossless audio support in the second-generation AirPods Pro in a new interview. Current Bluetooth technology in the AirPods lineup means that Apple's audio products do not support Apple Music Lossless audio. Apple has previously hinted that it may develop its own codec and connectivity standard that builds on AirPlay and supports higher quality...
mac imac snowflakes

Best Black Friday iMac and MacBook Deals Still Available

Thursday November 24, 2022 1:07 pm PST by
Our Black Friday coverage continues through the weekend with the best deals you can find on MacBook Pro, MacBook Air, and iMac. As with all Black Friday deals, we aren't sure how long any of these will last, and prices are always fluctuating, so if you see something you want, be sure to buy it soon. Note: MacRumors is an affiliate partner with some of these vendors. When you click a link and...
maxresdefault

Nothing Phone 1 Displays AirPods Battery Level After Latest OS Update

Friday November 25, 2022 3:33 am PST by
Nothing Phone 1 users today began receiving the Nothing OS 1.1.7 update, which adds support for displaying the battery percentage of connected AirPods, amongst other improvements and bug fixes. If you own a Nothing Phone 1, you can check for the OTA update by going to Settings -> System -> System updates. Bear in mind that as support for displaying AirPods battery level is still an...
apple watch gold ornaments

Best Black Friday Apple Watch Deals Still Available

Wednesday November 23, 2022 9:31 am PST by
We're tracking all of the best Apple product discounts for Black Friday as they continue through the weekend, and the Apple Watch always makes a great gift around the holiday season, so you're guaranteed to find solid discounts right now. In this article, you'll discover the best Black Friday sales on Apple Watch Series 8, Apple Watch SE, and Apple Watch Ultra. Note: MacRumors is an affiliate...