RUMOR: Foxconn to invest $12 billion in Brazil; Apple iPad production to start by end of November

“iPhone maker Foxconn Technology Group is considering investing $12 billion in Brazil to assemble monitors, Brazil’s president said on Tuesday, in a sign the company may be ready to accelerate its move away from its main China manufacturing base,” Ray Colitt reports for Reuters

“The Brazilian government is studying Foxconn’s investment plan, President Dilma Rousseff told reporters during a visit to Beijing, where she is meeting with Chinese President Hu Jintao,” Colitt reports. “‘We’ve been talking to them for three months,’ said Aloizio Mercadente, Brazil’s science and technology minister.”

Colitt reports, “The Brazilian government and Foxconn are negotiating a range of details, including the location of any new facilities, financing, taxes, broadband infrastructure and logistics, including roads. ‘The negotiations are far from complete but I’m confident,’ said Mercadente… Separately, Mercadente also told reporters that Foxconn is planning to begin assembling Apple’s iPad tablet PC at its plants in the South American country by end-November.”

Read more in the full article here.

[Thanks to MacDailyNews Reader “Dan K.” for the heads up.]

17 Comments

  1. “Tech companies are keen to sell to Brazilian consumers hungry for high-end electronics, but gadgets are often priced out of the market because of high production costs and import tariffs. Apple’s cheapest iPad, for example, retails for about $860 in Brazil, versus $400 in the United States.”

  2. Why can’t Apple assemble their gear in the United States. How big a hit on profit margins would it take? 5%? 10%? They can afford it. And we need the jobs!!

    Mr. Jobs — where are the jobs?

    1. Any member of the GOP can tell you, it’s because greedy lazy unions in the US won’t allow their members to work for $10 a day to compete with the global labor force, but we’ll be there soon enough.

        1. If we had the FairTax we could manufacturer iPads in the US. The problem now isn’t necessarily the hourly pay we pay our workers but the imbedded payroll and corporate taxes in the goods we export that aren’t built into the goods we import. Think about it. This could be a big deal.

      1. Unions are just a scapegoat for corporations who want to get their manufacturing off-shore to reduce overall costs. Only 7% of the workforce in the US is unionized. Are you trying to say that this is why the US is in such a horrible mess because of the 7% of your workforce. Or could it be because of the greedy Wall Street Bankers for whom $millions a year is not enough?

    2. But you forget, Mike: Today’s youth are being taught in high schools and college that menial factory labor is far, far, FAR beneath them. They cannot perform the simplest mathematical operations, but they feel TERRIFIC about themselves and their numerical prowess. Every student today is being prepped for creative, white collar, intellectual, ivory tower endeavors . . . even though only one in ten of them is truly suited for such employment. “What, me sit all day working like a robot on circuit boards as they pass by me on a conveyor belt? Really? I’d rather live with my parents for the rest of their lives than slave away in a factory! I’m a genius! Look at my educational resumé: ALL A’s!” (I know all this for a fact, just having retired from 30 years in the classrooms of a western US high school.) Fact is: Manufacturing is simply not an avenue of pursuit for today’s youth. Sad, but true.

        1. Apple would never have manufacturing jobs in the U.S. Health care coverage is too expensive for most companies. Besides, it would kill Apple profit margins. Wall Street would crucify Apple if they lost even a small amount of margin. Wall Street is not about employment, it’s about how much money a company can make on a product. Apple needs to find some country where people will work for $2 a day, then Apple’s share price might go up.

  3. It really hacks me off that stuff like this can’t be located in the US of A. It’s maddening. We can find plenty of people to assemble bombs; why not something useful?

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