As noted by O Globo, Apple today made significant cuts to its pricing for the iPhone 4 and 4S in Brazil, lowering the price of the 8 GB iPhone 4 from R$ 1499 (US$741) to R$ 1099 (US$544) while dropping the 16 GB iPhone 4S from R$ 1999 (US$989) to R$ 1699 (US$840).
Apple's standard sales arrangement in Brazil includes financing of 12 monthly payments, but customers willing to pay in full with cash can order by phone for a 10% discount, bringing pricing down even further to R$ 989 (US$489) and R$ 1529 (US$756). It appears to be unclear if there have been any changes to iPhone 5 pricing, as Apple does not sell the device through its online store in Brazil.
In the United States, Apple sells the 8 GB iPhone 4 unlocked and unsubsidized for $450 before taxes, making Brazilian pricing fairly competitive with Apple's U.S. pricing. The 16 GB iPhone 4S is priced at $549 unlocked in the U.S., meaning that Brazilians are still paying a relatively significant premium for that device even with the 15% price cut.
The report does not note the reason for the significant price cut, but it seems likely that Apple's partnership with Foxconn to bring iPhone and iPad production to Brazil in order to avoid extremely high import taxes may now be yielding benefits. Apple has, however, not yet reduced pricing on the iPad in Brazil.
Late last year, Apple began hiring for its first retail stores in Brazil, seeking to raise its profile in the world's fifth most populous country.