Apple is exploring the expansion of its Jundiai factory in Brazil to counter rising production costs and tariffs from Asia, particularly affecting its suppliers in China and India. This factory has already been pivotal in assembling various iPhone models and offers a lower tariff alternative for US exports compared to its Asian counterparts.

Apple Inc. is reportedly contemplating an expansion of its operations at the Foxconn factory located in Jundiai, Sao Paulo. This decision is driven by increasing production costs in Asia, particularly due to new tariffs imposed by the US government. As highlighted in a report by Brazilian magazine Exame, this consideration comes as a response to tariffs affecting major suppliers in China and India.

Over 50% of Apple’s smartphone shipments currently originate from China. Following the significant tariffs imposed on April 2, China retaliated with a 34% tariff of its own, further straining Apple’s supply chain. India is also facing challenges; it is expected to implement a 26% tax, despite having recently doubled its device production between 2024 and 2025.

The Foxconn facility in Jundiai has long been a partner of Apple and currently assembles basic models of the iPhone 13 through 15. Notably, it has now received approval to manufacture the iPhone 16. Given the relatively modest 10% duties imposed on Brazilian exports to the United States, the Jundiai factory presents a strategic alternative for Apple amidst the ongoing trade tensions.

Apple’s potential expansion in Brazil through the Foxconn factory aims to mitigate rising production costs and tariffs imposed on its suppliers in Asia. With significant operations in China and India affected by high tariffs, this strategic move could enhance Apple’s manufacturing resilience and balance its supply chain across regions.

Original Source: breakingthenews.net