Apple Inc. is exploring an expansion of its Foxconn factory in Brazil to offset rising production costs and new tariffs in Asia. This decision is motivated by increasing tariffs affecting Apple’s suppliers in China and India. The Jundiai facility has a strong partnership with Apple and already manufactures several iPhone models.
Apple Inc. is reportedly evaluating an expansion of its manufacturing capabilities at the Foxconn facility in Jundiai, Sao Paulo. This potential expansion aims to mitigate rising production costs associated with tariffs imposed on its major suppliers in Asia, particularly in China and India. According to an Exame magazine report, this decision follows new tariffs introduced by U.S. President Donald Trump.
Currently, over half of Apple’s smartphone shipments are sourced from China, where recent tariff adjustments have significantly impacted costs. On April 2, China introduced high reciprocal tariffs, alongside a substantial 34% response, while India also faces a 26% levy due to increased production targets between 2024 and 2025.
The Foxconn facility in Jundiai has a longstanding relationship with Apple and currently assembles various models of the iPhone, including the 13 through 15, and it has recently received approval to start manufacturing the iPhone 16. The Brazilian export duties, set modestly at 10% for the United States, enhance Brazil’s attractiveness as an alternate manufacturing site for Apple.
In conclusion, Apple Inc. is considering bolstering its production capacity in Brazil as a strategic response to rising tariffs impacting its operations in Asia. By focusing on its partnership with Foxconn in Jundiai, Apple aims to diversify its manufacturing locations, reducing reliance on Chinese and Indian production. The comparatively low tariffs on Brazilian exports to the U.S. make this expansion economically viable and beneficial.
Original Source: breakingthenews.net
