iPad production in Brazil gets tax breaks

While Brazilian-made iPads might be a bit behind schedule, they're shaping up to be ready shortly. The government has recently confirmed that Foxconn has qualified for local tax breaks, which they'll be happy to get after pouring $300 million into the country to make its third factory in São Paulo and hiring 1,400 local workers. Foxconn has earned exemption or reduction from IPI (a federal tax added to production materials) and PIS (a tax to pay for unemployment insurance and low-wage workers). Apparently the rule will apply to all tablets weighing less than 750 grams, so in theory, Foxconn could benefit from these tax cuts when building tablets for competitors, too.

Foxconn has invested more than $12 billion into the whole affair, which was all put at risk as the manufacturing giant demanded special treatment from the Brazil government before setting up shop.

No doubt a manufacturing facility will do wonders for Apple's penetration in Latin America, but I would be curious to see how much it helps us here in North America - after all, shipping from Brazil would be much faster than from China, at least on paper. I would be a little surprised if the Brazilian shipping infrastructure was as strong as Shenzhen's, so it might actually be a close race. Even as a back-up to the main supply line from, this Brazilian plant will do good things for making sure iPads are well-stocked around the world.

Source: Folha via AppleInsider

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Simon Sage

Editor-at-very-large at Mobile Nations, gamer, giant.

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Reader comments

iPad production in Brazil gets tax breaks


I'm from Chicago, but now live in Campinas, an hour outside Sao Paulo. The iPads here are so expensive, r$1,300 for the cheapest 8th wifi model. It'd because of the 60-90% import tax. Yes 60-90% depending on which state of Brazil you buy from. I'm so excited about this. You have no idea.

So much for the BS that Apple said regarding China being the only country where they could ramp up production so quickly because of the surplus of qualified workers. They said it couldn't be done in the US. Are they suggesting that Brazil has more qualified technical workforce than the United States. It's all BS, it was always about $. They can't find qualified workers in the US who will work for the "slave" wages that they want to pay.

Being Brazilian living in the states I can tell you one thing I'm happy about....we will now get new product/secret info much easier than we do from foxconn in China.....Brazilians can't keep their mouth shut or hide anything even if their life depended on it..... :-)