Apple Inc. is considering expanding its Jundiai factory in Brazil to counter rising production costs due to new US tariffs impacting suppliers in China and India. This strategy seeks to mitigate the effects of tariffs on Apple’s smartphone shipments, which predominantly come from Asia. Brazil offers a favorable 10% export duty, making it an attractive alternative.
Apple Inc. is reportedly contemplating an expansion of its operations at the Foxconn factory located in Jundiai, Sao Paulo. This consideration aims to mitigate increasing production costs stemming from new tariffs implemented by United States President Donald Trump. A report from Brazilian Exame magazine indicates that this decision is part of Apple’s strategy to adapt to recent tariffs affecting its suppliers in China and India.
Currently, more than half of Apple’s smartphone shipments are sourced from China, which has recently experienced both high reciprocal tariffs and a 34% response to US tariffs announced on April 2. Concurrently, India, which is anticipating a doubling of device production by 2025, is facing a substantial 26% tariff.
The Foxconn facility in Jundiai has been a key partner for Apple, currently assembling various models of the iPhone, including base models from the iPhone 13 through 15, and it has now received approval for iPhone 16 assembly. Additionally, Brazil benefits from a relatively modest 10% duty on exports to the US under the Trump administration, positioning it as an attractive alternative for Apple to consider for its production needs.
In conclusion, Apple Inc. is evaluating the potential expansion of its Foxconn factory in Brazil as a strategic response to rising production costs and tariffs in Asia. This move could help Apple diversify its manufacturing base while reducing dependence on China and India. The favorable export duties in Brazil further bolster the feasibility of this expansion, aligning with Apple’s ongoing efforts to optimize its global supply chain.
Original Source: breakingthenews.net
