Apple to extend the assembly of the iPhone to Brazil to bypass American prices

President Trump announced this week a series of prices imposed on the importation of products from other countries, which will eventually strike many American companies like Apple – because most of its products come from China. Now, it seems that Apple plans to extend the assembly of iphones to Brazil to bypass the American prices.

Apple to assemble more iphones in Brazil

Familiar sources with the case told Brazilian magazine Examine That Apple plans to expand the capacity of its installations in Brazil as a means of paying lower import rights on iPhones.

Apple has been assembling products in Brazil since 2011. The company has built an installation in São Paulo in partnership with the company Taiwanaise Foxconn. However, due to its small capacity, only a few products are assembled in Brazil, such as entry -level iPhones, to provide the local market. According to the report, Apple wants to assemble even more iPhone models in Brazil in the near future.

“The possibility of expanding manufacturing in Brazil began to be studied last year, with upgrades to machines and industrial processes,” said the report.

Anatel, the Brazilian telecommunications regulator, recently granted Apple and Foxconn Brazil the certification necessary to assemble the iPhone 16 in Brazil. The iPhone 13, the iPhone 14 and the iPhone 15 were already assembled in the country. The report suggests that Apple also wishes to assemble the iPhone 16 Pro models for the first time in Brazil.

If Apple succeeds, the iPhones assembled in Brazil will not only meet local demand, but will also be exported to the United States. For Apple, this will result in a considerably drop in taxes.

The American government will tax products imported from China by 34%. India, which also assembles iPhones exported to the rest of the world, has been slapped with a tariff of 26%. For Brazil, Trump’s prices are only 10%. The president says that the prices are “reciprocal” from the fact that each country already invoices on products imported from the United States.

Apple’s shares have already plunged more than 10% since the announcement of new prices. So far, the company has lost $ 300 billion in market value. The same thing has happened to other American companies such as Nvidia. The announcement has already pushed Nintendo not to launch the switch 2 in the United States, citing the uncertainties on prices.

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