More than 10 years ago, Apple only assembled its iPhones in China, a country where wages are low and it is easy to maximize the profit margin on each iPhone. However, with the trade war between the United States and China as well as the lockdowns in China that have paralyzed the operation of factories, Apple thought that it might be better to open up to alternatives to Made in China! Now, iPhones are produced in India, but also in… Brazil!
Brazilian production for the iPhone 16
For the first time in its history, Apple is assembling a latest-generation iPhone outside of Asia. In addition to China and India, Brazil now joins the list of countries participating in the manufacture of the iPhone 16, so it is possible to see “Made in Brasilia” models in circulation around the world.
While this is good news for Brazil, as new jobs are created, there is also bad news: only the iPhone 16 is affected by this Brazilian production, which means that the Pro and Plus models will remain exclusive to India and China. This approach shows that Apple does not yet have complete confidence in Brazilian production, as the company seeks to maintain the production of its high-end models in Asia.
Strengthening collaboration with Foxconn
To carry out this project in Brazil, Apple continues to collaborate with its long-time partner, Foxconn. The factory located in Jundiaí, in the state of São Paulo, was selected to ensure this production. This collaboration allows Apple to benefit from solid expertise while reducing launch times in Brazil. Concretely, Brazilian consumers will be able to get their hands on the iPhone 16 just one week after its release in France, compared to one month previously. That still makes a big difference for the turnover generated by Apple in Brazil!
Manufacturing the iPhone 16 in Brazil is not just about diversifying production. Apple also benefits from tax advantages by producing locally. By avoiding Brazil’s hefty import taxes, the company improves its margins while making its products more competitive in the local market. This is a key advantage in a country where tariffs can significantly increase the final price of electronics.
A Global Strategy in Full Evolution
The expansion of iPhone 16 production to Brazil reflects a broader trend at Apple: reducing its reliance on China for assembly. As trade tensions between the United States and China persist, Apple continues to look for ways to protect its supply chains and secure manufacturing capacity.
With India and now Brazil, Apple is diversifying its manufacturing bases while optimizing its costs and delivery times. This decision could pave the way for new production strategies in other countries, particularly for future iPhone models.
