Apple Ramps Up iPhone Production in Brazil

Apple has begun assembly of the latest iPhone 16E model in Brazil, indicating a change in the company’s production strategy as it aims to mitigate the impact of the ongoing trade war between the US and China.

9to5mac Report To avoid the heavy tariffs imposed by the Chinese government, Apple has begun assembling the latest iPhone 16E models in Brazil. The move comes as part of Tech Giant’s broader plan to diversify manufacturing operations and reduce dependence on China amid the escalation of a trade war between the two economic superpowers.

Customers who purchased the iPhone 16E in Brazil noticed the label “Brazil Industry assembled in Brazil” on the package, confirming that the device is being produced locally. Apple’s Brazilian online store also supports this information, with the purchase URL for the iPhone 16E revealing the model number ending with “BR/A” assigned to the product assembled in Brazil. In contrast, iPhones imported from other countries have the label “be/a”.

Anatel, a Brazilian telecom regulator, has provided documents confirming that the iPhone 16E is being assembled in Brazil, China and India. The locally assembled iPhone 16E costs around $890 in Brazil, but can be found at retailers as low as $670 due to the tariff exemption from domestic production. In comparison, phones start at $600 in the US. These phones are clearly not available in the US yet, but the quick changes show that despite signing a massive deal with communist countries, Apple is not married to China as its main business location.

This move to increase Brazilian production was a departure from Apple’s previous strategy, usually including waiting several months before starting a rally for the latest iPhone models in the country. The changing approach highlights the urgency of Apple trying to mitigate the impact of US-China trade disputes on activities.

In contrast, Brazilian products are only subject to 10% tariffs, making it an attractive alternative for Apple to import iPhones from Brazil rather than China. The company flew multiple planes carrying hundreds of tons of iPhones and other products from India and China before tariffs were enacted to minimize the immediate impact on the supply chain.