Apple Inc. is considering expanding its Foxconn operations in Brazil to reduce production costs influenced by new tariffs from the U.S. This strategic expansion is a response to rising costs in Asia, particularly in China and India, where substantial tariffs are affecting Apple’s supply chain.
Apple Inc. is reportedly contemplating an expansion of its operations at the Foxconn factory located in Jundiai, Sao Paulo. This decision appears to be a strategic response to rising production costs in Asia exacerbated by new tariffs implemented by the United States government. A report from Brazilian Exame magazine highlights these developments, noting that significant tariffs imposed by President Donald Trump are adversely impacting major Apple suppliers operating in China and India.
Presently, more than half of Apple’s smartphone shipments are sourced from China, which has been subjected to high reciprocal tariffs as of April 2, along with a substantial 34% tariff introduced by the Chinese government. Meanwhile, India, which plans to double its device production by 2025, is also experiencing pressures from a 26% tariff.
The Foxconn facility in Jundiai has been a long-standing partner of Apple, currently assembling the base models of the iPhone series from the 13 to the 15 versions. Furthermore, the factory has recently been authorized to begin assembling the iPhone 16. This strategic location offers Brazil a relatively moderate 10% tariff on exports to the United States, positioning it as a more attractive option for Apple amid the tariff challenges faced in Asia.
In summary, Apple Inc. is evaluating the expansion of its Jundiai facility in Brazil to mitigate escalating production costs in Asia due to new tariffs. With significant reliance on China and India for its smartphone shipments, the company finds Brazil’s more favorable tariff structure appealing. This move underscores Apple’s adaptive strategies amidst evolving global trade dynamics.
Original Source: breakingthenews.net
