Apple Inc. has been progressively expanding its iPhone assembly operations in Brazil, aligning with its strategy to diversify manufacturing beyond China and mitigate supply chain risks. This initiative also aims to circumvent Brazil's substantial import tariffs, thereby offering more competitively priced products to Brazilian consumers.
In March 2024, Apple commenced assembly of the 6.1-inch iPhone 15 at the Foxconn facility in São Paulo. This move was designed to reduce high import fees that significantly elevate electronics prices in Brazil. Despite local assembly, the retail price of the iPhone 15 remained at R$7,300 (approximately $1,460) for the 128GB model at that time. This effort was part of Apple's broader strategy to diversify its manufacturing footprint beyond China.
By September 2024, Apple expanded its Brazilian assembly to include the iPhone 16, with production occurring simultaneously in Brazil, China, and India. The Foxconn facility in Jundiaí, São Paulo, began assembling the base iPhone 16 model from the outset, marking a first for Apple's operations in Brazil. This expansion aimed to reduce reliance on Chinese manufacturing and address supply chain vulnerabilities.
These strategic moves reflect Apple's commitment to localizing production to avoid import tariffs and offer more competitive pricing in key markets. By assembling iPhones in Brazil, Apple not only navigates the country's high import duties but also positions itself favorably in the Latin American market, where cost considerations significantly influence consumer choices. This approach underscores Apple's broader objective to diversify its manufacturing base and enhance supply chain resilience amid evolving global trade dynamics.