Apple Ramps Up iPhone Production in Brazil

Apple has begun to assemble its latest iPhone 16 model in Brazil, marking a change in the company’s production strategy, since it aims to mitigate the impact of the current commercial war between the United States and China.

9TO5MAC reports that in an effort to avoid useful tariffs imposed by the United States government to Chinese imports, Apple has begun to gather its latest iPhone 16 model in Brazil. This movement is produced as part of the broader plan of the technological giant to diversify its manufacturing operations and reduce its dependence on China in the middle of the growing commercial war between the two economic superpowers.

Customers who bought the iPhone 16 in Brazil have noticed that the label “gathered in the Brazilian industry of Brazil” in the packaging, which trusts that the devices are taking place locally. The Apple online store also corroborates this information, with the purchase URL for the iPhone 16 that reveals a model number that ends with “BR/A”, which emerges to the products assembled in Brazil. In contrast, the iPhones imported from other countries carry the “be/a” label.

Anatel, the Brazilian telecommunications regulator, has proven the documentation confirming that the iPhone 16 is gathering in Brazil, China and India. The local assembly iPhone 16 is set at approximately $ 890 in Brazil, although it can be found in retailers for only $ 670, probably due to tariff exemptions for national production. In comparison, the phone starts at $ 600 in the United States. These phones are apple that are not yet noticable in the United States, but the rapid change indicates that Apple is not married to China as its main basis of operations, despite signing a massive agreement with the communist country.

This movement to increase production in Brazil is a deviation from Apple’s previous strategy, which generally involved waiting for several months before starting the assembly of its latest iPhone models in the country. The approach change underlines the urgency with which Apple seeks to mitigate the impact of the commercial dispute between the United States and China on its operations.

In contrast, Brazil products only have one leg subject to a 10 percent rate, so it is an attractive alternative for Apple Iphones from Brazil instead of China. The company flew multiple airplanes that carried hundreds of tons of iPhones and other products from India and China before the effect of rates toks, in an effort to minimize the immediate impact on its supply chain.