“It’s looking increasingly like Apple might shift a sizable portion of their iPad production to Brazil,” Ed Sutherland reports for Cult of Mac.
“To prepare, Brazil’s president lowered taxes on producing and purchasing tablets in the South American country,” Sutherland reports. “Tuesday, Brazil Communications Minister Paulo Bernardo announced the government would provide tablets regulatory relief amounting to a 36 percent price cut.”
Sutherland reports, “The changes exempt tablet producers from a 9.25 percent PIS tax, cut the country’s IPI sales tax to 3 percent from 15 percent and reduce the import tax… Last month, Brazil President Dilma Roussef told a Beijing audience Foxconn has invested $12 billion in a possible manufacturing site. The site could begin making iPad’s as soon as November, another Brazil minister said.”
Read more in the full article here.
Related articles:
Several obstacles remain before Foxconn assembles iPads in Brazil – May 6, 2011
Foxconn to assemble Apple iPhones and iPads in Brazil; Mac production a future possibility – May 3, 2011
RUMOR: Foxconn to invest $12 billion in Brazil; Apple iPad production to start by end of November – April 12, 2011
Apple factory in Brazil to minimize huge taxes? – March 23, 2011
Foxconn may open Apple manufacturing plant in Brazil – March 19, 2011
$985 iPad in Brazil a vivid example of how high tariffs and protectionist policies hurt consumers – December 9, 2010
Designed by Apple in California; Assembled in Brazil? Brazilian billionaire courts Apple – November 18, 2010
Go figure. Lower taxes to attract business and create lots of jobs in the process. Even export products you made.
Sounds like a winning formula to me. Just wish Obama would have paid more attention to that rather than watching old movies when he went there.
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Correcto. The guy turns out to be a major disappointment. So much for “hope” and “change”. I was even suckered into sending him a $25 campaign contribution. Wish I could get it back.
I agree to an extent, but some perspective is always needed: http://whatthefuckhasobamadone.com/
Heh… here’s the actual URL (can’t believe you can’t edit comments or delete):
http://whatthefuckhasobamadonesofar.com/
…and that from an actual Socialist government in a strongly unionized country that HAS single-payer healthcare, not to mention a protectionist tariff policy history that makes imports absurdly expensive.
So you WANT those policies? Really?
Uhm, Brazil has HUGE tariffs on electronic goods, making Apple products sold in Brazil over double what you’d pay here!
These tax breaks are only bringing Brazil into line.
We already have some of the lowest EFFECTIVE- not baseline- business taxes in the developed world. Stop listening to Faux Newz, CNBC & Rush the Oxy Addict and do your homework.
The Federal Tax Code is so full of exemptions, loopholes, waivers and such as to make the listed rates a fairy tale. States and local governments routinely grant huge tax waivers to attract businesses- from big box stores to manufacturing plants. It’s one of the reasons US infrastructure is such a basket case- they have starved maintenance in order to hand out tax cuts.
Corporations are addicted to corporate welfare and yet always cry about taxes. It’s a long running con.
Gallup:
U.S. Unemployment at 9.2%: Just as many Americans are now working part time but seeking full-time work as was the case a year ago.
U.S. Underemployment at 19.1%: Underemployment remains as high as it was in mid-May 2010.
Before you go patting Brazil on the back, you should consider that they have some of the most protectionist tax policies imaginable. Most items not manufactured in Brazil are extremely expensive. For example, a Honda Fit will run you about $30,000 there. These tax cuts will enable Apple to sell their products for a price comparable to other countries.
I know Brazil has high taxes and suffers from its own protectionist policies and life there is very expensive. My brother in law grew up in Brazil.
It’s just that the contrast that shows the difference between liberal policies that make life harder for everyone and the “evil” capitalist policies that creates jobs, wealth, and net tax revenue.
Then you must not talk a lot to your brother in law, otherwise you wouldn’t be saying this kind of shit. What a stupid comparison.
Signed,
Someone who lives in Brazil
I heard they lowered taxes ‘one Brazilian dollars’ (hold pinky to mouth and laughs annoyingly)
Doesn’t mean that Apple will shift production to Brazil from other sources. It could signal an expansion in production to meet iPad demand, and to protect production capabilities from natural disasters.
I look for them to eventually set up works in Europe also.
(I hear Greece could use some money….)
…And Ireland could use the money too.
And we have a corporation tax of just 10%.
And my Mac Pro was manufactured in Cork, Ireland.
And we need more manufacturing plants/jobs here.
It’s not about Obama. If there was an uncomplicated of getting more businesses here, he would have done it by now. He did catch Bin Laden, remember?
Anyway, this points to the fact that American needs more work to get companies like Apple to build factories here. A president can’t do it alone especially if you have the republicans blocking any and all progress.
BTW, Brazil may not have the same standards as the U.S. jobs. How would you like to work building iPads for an awesome $300 monthly salary? Are you ok with that? If so, go to Brazil! 🙂
With voters like you, “MEES,” it’s no wonder Obama got elected and the U.S. is going down the shitter.
Do us all a favor: If you don’t know what you’re talking about, stay the fuck home on election days, okay?
Check your (revisionist) history…the economy was already IN the crapper in January 2009. Here we are just over two years later in a slow recovery, but a recovery nonetheless.
Consider the alternative was John “The Economy is Fundamentally Strong” McCain and Sarah “Quitter” Palin I think the electorate did just fine.
Dude, the economy is not recovering.
Wish I was wrong, but take a look around.
Don’t try to inform the Reich Wing. They only listen to the Republican Newspeak Ministry (Faux Newz & CNBC) and approved minions ( Rush the Oxy Addict, Slanthead Hannity, Michael Weinersavage, Glen ‘be very afraid’ Beck, etc).
When presented with facts they will bury their heads in the sand. The Bush Rrecession is Obama’s fault and getting OBL was because of long out of office Dubya. Go effin figure how that works.
It’s obvious that Obama’s policies are failing when he literally has to beg companies to do their part and hire more people.
That is total nonsense. Companies hire people because it makes business sense to do so. As long as we have policies that vilify businesses and take from those who create wealth to hand it over to those that don’t, there isn’t much of a reason to expand just to have the gov’t take it away.
I’ve got an idea! Let’s tax the oil companies more and the price will drop. Then we’ll subsidize Brazilian drilling I very deep Atlantic waters. We keep the Gulf clean, clean out the oil companies, and let Brazil clean up on the future oil supply. Must be some very smart politico to push this through.
Holy crap! I thought this was an Apple forum not SarahPAC.
It’s all right though, no one on the right can agree what to do except talk trash about Obama, but he has accomplished more in the first half of his first term (yeah, that’s right, four more baby!) than Dubya’ ever did, unless you count each war death or job lose (its called “the recession of ’08) as an accomplishment.
Gallup:
U.S. Unemployment at 9.2%: Just as many Americans are now working part time but seeking full-time work as was the case a year ago.
U.S. Underemployment at 19.1%: Underemployment remains as high as it was in mid-May 2010.
See you in 2012!
You stopped counting war deaths when we switched presidents? Funny how the media did too… we used to get a number splashed on the screen to remind us who to blame… Ok, this is an Apple forum… let’s see… Apple chooses Brazil and NOT the US to build iPads… Gotta be a reason, right? You guys willing to cut your wages to bring in more jobs? You will have to cut costs to business if you want them to be here… that means taxes or wages, take your pick of the cuts…. blaming business with vitriol (those evil greedy rich people) on one hand and begging them for job creation on the other… hmmm how is that working?
In aswer to you first question, no, I didn’t stop counting when we switched. Dubya gets credit for all of those to.
You COULDN’T cut cost enough by just cutting taxes to make it as cheap here as it will be in Brazil, it would have to be taxes AND wages.
So in answer to your second question, no, like most Americans, I am not willing to take a cut in my wages, and that’s why those jobs have left this country and won’t come back.
Lastly, the recession hasn’t hurt the evil greedy rich quite as much as it has most Americans, with corporations taking in record profits while cutting jobs. So we can beg all we want, but if you want a job making iPads you will need to learn to speak Portuguese.
This site is supposed to be a place to discuss Apple and its products. If I want political shit from clueless assholes I can watch Fox news.
Why not use a mirror?
: D
having lived and worked overseas I say Brazil’s protectionist policies hurting Apple sales is not uncommon. In some countries Apple products (e.g Macs) because they are imported are whacked with high tariffs but PCs because they are assembled locally (sometimes in mom and pop outfits) are not.
At last Apple is adding South America to its successful list of continents where it can sell its products at competitive prices. Only Africa and India to follow.
This is a smart move on Apples part because it will reduce supply disruption from a major natural disaster such as the one that hit Japan. More and more Apple is becoming a true global giant! Great time to invest more money in this incredible company! Everyone that does so will make some profit over the next year.
It’s not only about taxes that keep business out of the USA, it’s also the cost of living. People love to throw out things like, “they only make $300 a month! You want to lower your wage to that?”. Frankly, those who do that really have no clue what the world is like. $300 a month in the USA is less than nothing, $300 a month in the majority of the world is better than middle class and has huge perks. Heck, $300 in California is nothing compared to, say, Michigan. Try buying a 4 bedroom home in New York, say 2800 square feet on .8 acres of land in a nice area. Michigan you can get it for $200,000 to $300,000 tops. New York, or California? better double that min.
So placing a statement on how much someone makes in one country verses another is not comparing “apples to apples”. There are many nuances that have to be figured into the equation not just a flat out statement- otherwise, you appear very uneducated, ignorant, or just a plain ole liar. Your pick.
I’m all for moving production out of Red China- Red in name only. Have nothing against the Chinese people, but loathe the government and it’s policies.
Why?
Tiananmen Square.
Maybe NY State could buy a clue and we could produce them here.
As some one who has been living in Brasil for the past five years let me give you my perspective of this move. firstly this has been on the cards for a while, I heard about the Foxconn investment quite a while ago and they join companies such as Motorola and Nokia (to name just two) to manufacture in Brasil. But the products made in these plants aren’t significantly cheaper than imported models.
The same is true in the auto industry. A few years ago when Mitsubishi started assembling L200 pick ups in Goias Brasil, I thought magic, I’ll be able to afford one now. But nope! They still cost twice as much as they do in the rest of the world DESPITE being exempt from the ridiculous import duties. Put simply, the manufacturers take the tax breaks and simply add them to the profit columns on their spreadsheets.
I think this is for two reasons. The first is simple; greed. The second I think comes down to brand value. If a Mitsubishi costs half what a Toyota costs, people will think that Mitsubishi are an inferior brand. So they keep the prices on a par, pocket inflated profits and retain their brand image.
I’d expect Apple (and any other brand who get products manufactured by Foxconn at the new factory) to do exactly the same. The price of the iPad will not drop 36% overnight, in fact I doubt that they will drop at all. Not least because the rapid ongoing growth of the middle and millionaire classes here, means that people don’t just desire Apple products but more and more everyday can afford them, even at these stupid prices. Apple sales in Brasil are growing, they are not stifled by their high prices.
In truth the biggest factor to price changes in Brasil is not taxation or local manufacturing but the near endless strengthening of the Brazilian Real against the dollar. This has already led to significant price reductions over past years.