Apple factory in Brazil to minimize huge taxes?

“Eike Batista, the world’s eighth richest man, expressed his desire last November for Apple to build a plant in Brazil, in part so Brazilians wouldn’t have to pay such high taxes on iPhones and iPads,” Kerry A. Dolan reports for Forbes.

“Now Brazilian news site RedeBomdia is reporting that Foxconn, the company that builds Apple products in China, is looking into expanding its factory north of Sao Paulo [in Jundiaí] in order to build products for Apple,” Dolan reports. “Batista, who is worth $30 billion according to Forbes’ recent World Billionaires’ list, would definitely be playing outside his usual field if he did invest in the Foxconn plant.”

Read more in the full article here.

[Thanks to MacDailyNews Readers “Dan K.” and “Judge Bork” for the heads up.]

22 Comments

  1. Apple could also use an outlet for $35B in cash sitting in foreign subsidiaries. Yes, only $25B of the $60B Apple has in cash is actually sitting in the US. If Apple were to repatriate those profits to the US, they’d have to pay more taxes, up to 35%, so that’s why it’s sitting overseas. Investing in component supply and mfring overseas is not a bad way to spend that money, at least until, another corporate tax holiday is announced. The last was in 2004.

  2. Fracking Brazilians are good for nothing layabouts using high tariff walls to f*ck their citizens against adopting the latest technological advancements. Any government erecting high tariff walls are just delaying the inevitable – the world develops & runs forward while the country stagnates internally.

    That’s what you get for electing a socialist President Lula & his successor, some retard old woman whose name I can’t be bothered to remember. Some Brazilian samba dancer no doubt. That’s all Brazilians are known for. Retards the lot of them.

    1. Explain, then, why Brazil is counted among the BRIC countries – Russia, India and China are the remaining three – who are among the most rapidly developing. Or why Brazil is developing its offshore oil resources – even using US govt. loans to do it – while we’re restricting same. Not surprisingly, the Brazilian real is strengthening against the US dollar.

    2. If they’re stagnating, we should be so fortunate. Thriving aircraft manufacturing industry, auto manufacturing industry, and energy independence (and that was before all the offshore oil discoveries.) I guess being good for nothing layabouts is a good thing, huh?
      Maybe you should climb back into Balmers nut sack where you belong.

  3. Or how protectionism can turn into a benefit: attracting foreign companies to build plants and distribution centers. Because I suspect that they won’t charge high export taxes.

    1. Precisely – seems to be working nicely for China too. Or are they “retards” too? Also – what’s with the use of that word? Most civilised people consider it to be up there with the “N word” when it comes to inappropriateness.

  4. Hey Apple.How about a factory in the USA??? You have the profit margin to support a living wage, high quality, minimal transportation costs, rapid just in time engineering and product changes on the lines. Oh wait… building here wouldn’t give you the absolute maximum profit possible. The “share holders” would not be happy. You know, if you asked, put it to a vote, I think they’d LOVE a factory in the states. Think of the public relations coup you would haver over the other tech companies.

    1. Don’t 60% of Apple Revenues come from outside the US? Should they build a factory in all their major markets? The reality is that manufacturing is, for the most part, dead in the West. That’s not necessarily a bad thing. First it’s good that other countries can develop their economies and drag their people out of poverty. Second, the pie can grow so we can all benefit.

    2. By a living wage, I expect that is the amount of money given to a single mom living in the projects.

      I’m sure Apple can open a factory in the USA and pay the workers a living wage of $1000 a month.

    3. Apple doesn’t have ANY factories anywhere. All Apple manufacturing is done on a contract basis by others, primarily Foxconn, but others as well. Apple got out of the manufacturing business years ago because that isn’t it’s area of expertise and costs to build in the US were too high to be remotely competitive. Would you really be willing to pay $2000 for an iPad and $5000 for an iMac? How many others would?

  5. Apple is foolish to depend on others for the production of their products! Multiple suppliers and multiple sites in multiple countries is the only way to protect its production from halting.

    The Japanese earthquake is a wake up call to all international companies that dependence on one company, one site, one nation will be the downfall of a company.

    A strike a regime change a disaster can put a halt to iPhone – say – production for months with the subsequent loss of market share and possible loss of the ability to recapture it!

    I know — A company went bankrupt because of President Bush in 2003 due to his denial of government money to cloning research!

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