Apple will reshape its production strategy in the face of high tariffs imposed by the US on imports from countries such as China and India. The company plans to greatly increase the number of iPhones assembled in Brazil. With this move, it is aimed both to avoid import taxes and to export products to the USA at a lower cost.

Apple shifts iPhone production to Brazil

Since 2011, Apple has been manufacturing in Brazil in cooperation with Foxconn, and until now it has only been assembling some entry-level iPhone models in this country in order to offer them to the local market. However, infrastructure development work has been carried out since last year to enable this facility, which has limited capacity, to produce more models.

According to the news of Brazil-based Exame magazine, both technical and legal processes have been accelerated for the production of iPhone 16 and iPhone 16 Pro models in Brazil. Previously, iPhone 13, iPhone 14 and iPhone 15 models were also produced in Brazil. However, the iPhone 16 Pro model will be the first high-end device to be produced in this country.

This development shows that Apple will not only limit production to the local market, but also plans to use it for direct export to the US. The US administration has started to impose a 34 per cent tariff on products imported from China and a 26 per cent tariff on products from India. The tariff rate for Brazil was set at only 10 per cent.

Apple’s move to shift production to Brazil will not only be limited to protection from the economic effects in the US market. This move will also be an attempt to strengthen the company’s strategic position in Latin America and commission alternative production centres.