“A much-hyped $12 billion plan for Taiwanese manufacturer Foxconn to produce iPads in Brazil is ‘in doubt’ due to stagnant negotiations over tax breaks and Brazil’s own deep structural problems such as a lack of skilled labor,” Brian Winter reports for Reuters, citing “government sources.”
“The idea for a ‘Brazilian iPad’ prompted immediate skepticism back home, where factories have struggled for years with high taxes, an overvalued currency and a lack of qualified workers due to poor education and a tight labor market,” Winter reports. “The expected start date for production was first set for July, then delayed to November. Now, it is unclear whether the project will ever get off the ground, at least in the form that it was originally envisioned, the officials said on condition of anonymity.”
Winter reports, “Folha de S.Paulo newspaper reported on Thursday that funding for the Foxconn project from the BNDES state development bank — without which the initiative would likely collapse — was in danger of being withdrawn… If the project does fall through, it could become symbolic of Brazil’s struggle to meet high — and perhaps unrealistic — growth expectations this year. After expanding 7.5 percent last year, the economy is now forecast to grow just 3.5 percent in 2011, which could put it last in the BRICS group of large emerging markets, and near the bottom of Latin America. The issues holding back the iPad — high taxes, bad infrastructure and a shallow labor pool — are routinely cited by business leaders as the main obstacles to higher growth.”
Read more in the full article here.
[Thanks to MacDailyNews Readers “Brawndo Drinker” and “Carl H.” for the heads up.]
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Apple’s less expensive iPhone 4 (N90A) spotted at Foxconn Brazil – October 2, 2011
Foxconn begins Apple iPad assembly in Brazil – September 14, 2011
Brazil’s president slashes taxes to lure iPad production jobs – May 18, 2011
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
“high taxes, bad infrastructure and a shallow labor pool”…sounds like Obama Messiah has annexed Brazil.
Obama’s shal;low labor pool or “lack of qualified workers due to poor education” have been on Wall Street for 3 weeks now.
Maybe we can export the ‘Wallower’s’ (idiot Greedy Wall Street Protestors) to Brazil?!
‘Greedy’ protestors? Surely, you’re joking.
You can’t reason with idiots who are too stupid to understand that the protesters are not the problem.
all caused by eight years of government by Republican criminals.
Yeah, that’s why they’re doing it 3 years into Obama’s administration. Why don’t the protestors go do something actually productive. In America, if you can’t get a job or don’t make enough, all you need to do is come up with a better idea for a product or service and go to it. Stop complaining! Stop playing the victim! Go do something with your life! I mean, you got your free education, right? Go contribute to society, you bunch of ingrates!
“you got your free education”
Perfect! You get what you pay for. LOL
I think these freeloader protesters want free everything. They dont want “greedy” corporations to charge for their products.
” …all you need to do is come up with a better idea for a product or service and go to it.”
All you need to do? Are you completely insane?
“Yes, we can’t.”
Criminals have far higher standards.
Would a Brazilian iPad be smoother and glossier than a Chinese iPad?
Maybe, but I’m pretty sure it’d have a killer booty!!!!
No, but it will run the SaMBa protocol… 🙂
Ha! Very funny. I think it must.
Production line assembly doesn’t require employees to have a high-IQ and I can’t believe that Brazilians are some race that can’t be taught how to assemble devices. I agree that it may take time to train them, but that’s about it. Tax breaks are one thing, but I refuse to believe that they really can’t get enough skilled workers even if they had to recruit workers from other parts of the country. It’s true I don’t know all that much about Brazil in particular but if when in China, they can recruit young farm laborers and put them on production assembly lines, I’m certain they can do the same in Brazil.
My wife is from Brasil and I’ve been there once visiting her relatives (one happens to be a doctor). You’re right and you make a good point. Big population, smart people. etc. And, factory workers dont have to be smart – just look at our own union work force.
it’s not really a shortage of skilled labor. it’s a shortage of skilled labor that’s willing to work for what Foxconn is offering. In a hot economy, they have other options.
This happens all the time when an economy is booming–in the USA in the 90s, when even fast food outlets in some places couldn’t recruit the workers they needed. The people they did train moved up and out quickly, perpetuating the cycle. The recession fixed all that.
It’s Reuters, they are paid to print crap. I wonder what tablet maker paid for this?
it is possible that foxconn is already churning out iPhones/iPads at this plant and that a FUD article is just taking advantage of the secrecy vacuum.
never been to brazil but worked and taught in Asia.
Some years ago my wife and I as a sideline ran a ‘cram school’ in Asia to help kids pass tough Government exams. To get into top colleges you need perfect scores all through your school life, kids are in tears getting 90 out of 100. Kids are absolutely serious about studying. After a full day of school they spend hours in ‘cram schools’ like ours.
On weekends we taught younger kids. One parent came in after a few weeks, yelled at us and pulled his KINDERGARTEN kid out saying we were ‘too soft’ and unlike the other schools did NOT GIVE the kindergarten (5 years old) HOMEWORK!! Another told us we should CANE his kids if they disobeyed and not to be too soft (we of course refused to do this. This is some years ago, whether situations have changed I don’t know)
Kids are taught to sit still, listen to their elders (superiors) and do whatever is necessary without talkback.
Let me tell you these kids will make GREAT workers.
(some of my friends after teaching in Asia and shown great respect by students can’t deal with teaching back here in North America)
When I worked as a manager in an Asian company the staff under me NEVER gave any talkback and worked late into the night and sometimes overnight with no complaint (many of them with no overtime pay). When a couple of my guys collapsed and I sent them home, again i was accused by the boss for being ‘too soft’ , I should just have set up sleeping bags and bunk beds in the office when there was too much work! One girl involved in a crucial project was so sick I sent her home, the boss sent a guy to her house to drive her back to work “come back to work or we’ll fire you on the spot”. The client was very happy as the project got finished by deadline!! (I’m telling the bad moments, but usually the office ran like a machine. Astounding workers. If I was to run a company I’ll like to do it in asia. )
I’ve also worked in other places (with other races of whom I shall not mention) who come in for a 9 am shift at 11 am. They are the nicest people and love partying but useless as workers. I’ll work with the first group from Asia and like to party with the other group! (North Americans are in between the two extremes. )
Like I said never been to Brazil, how are they like?
As a follow-up to comments from Laughing_boy48 & MacLouie, the problem is not Brasil, it’s Foxconn. Aside from being exploited (no protection of labor rights), Chinese factory labor although disciplined is robotic & w/o improvization initiative.
Brasilian labor law is very robust (neo-liberals would call it ‘inflexible’). Brasilian workers tend to be highly creative & great improvisers. They are generally intelligent & trainable. This allows for good training to offset a lack of formal ‘education’, where applicable.
Also, at some point the Brasilian govt. will not be ‘blackmailed’ by Foxconn’s unreasonable demands for tax breaks & funding.
At the end of the day, Brasil does not need Foxconn, but Foxconn needs to diversify it’s narrow hi-risk China manufacturing base. Brasil offers the best value prop in this regard (as opposed to India, Russia, Europe or the US).
They think they’re real smart, but if/when they blow this deal, they will operate under a huge handicap in the world’s 3rd largest IT market. Positivo & Samsung w/b happy to fill the void. After all, for the Brasilian govt. a tablet is a tablet is a tablet & viewed as an inexpensive educational & connectivity tool for the masses.
I say the Brasilian govt should hang tough.