Apple Inc. is considering expanding its Foxconn factory in Brazil to counter rising production costs due to new U.S. tariffs on suppliers in China and India. The Jundiai facility currently produces several iPhone models and has been approved to manufacture the iPhone 16. Brazil offers a more favorable trade environment with lower export duties to the U.S.
Apple Inc. is reportedly contemplating an expansion of its operations at the Foxconn factory located in Jundiai, Sao Paulo. This strategic decision is intended to mitigate increasing production costs stemming from new tariffs imposed by the United States administration on major Apple suppliers based in China and India, as highlighted in a recent report by Brazilian Exame magazine.
Presently, a substantial portion of Apple’s smartphone shipments, exceeding 50%, is sourced from China. However, China has recently faced significant tariffs, including a 34% response, alongside reciprocal tariffs implemented on April 2. India, on the other hand, has also increased its device production, which is expected to be impacted by a new 26% levy.
The Foxconn facility in Jundiai has long been a partner of Apple, actively assembling the base models of iPhone 13 to iPhone 15. Additionally, the facility has recently received authorization to manufacture the forthcoming iPhone 16. With only a 10% duty on exports to the United States as instituted by President Trump, Brazil emerges as a favorable alternative for Apple’s production efforts.
In conclusion, Apple is exploring the expansion of its operations in Brazil as a strategic response to escalating tariffs affecting its supply chain. By potentially increasing production at the Foxconn facility in Jundiai, Apple seeks to minimize costs and maintain its competitive edge in the smartphone market amid challenging global trade dynamics.
Original Source: breakingthenews.net
