As part of its efforts to move some of its production dependence away from China, Apple has begun assembling some of its iPhone 14 units in Brazil.
A reader of the Brazilian blog MacMagazine who recently purchased a blue 128GB iPhone 14 in Brazil was surprised to see on the box that the device was “Assembled in Brazil” by Foxconn Brazil, located in São Paulo. The device’s Part Number ends with “BR/A,” which confirms that it was assembled locally.
It seems that only the regular iPhone 14 units are being assembled in Brazil so far. Quick checks as to product identifiers noted that iPhone models sold in Brazil that came from China are identified by “BZ/A” or “BE/A” and that these did not currently include the iPhone 14 Plus or iPhone 14 Pro models.
This isn’t the first time Apple has assembled iPhone units in Brazil, and in 2022, the company did the same with the iPhone 13. The iPhone SE is also assembled in Brazil, as the company focuses on assembling its less expensive devices in the country due to the local economic situation.
Brazil has historically imposed high taxes on imported devices, which tend to include almost ever Apple device. For that reason, some companies invest in assembling their products in Brazil, as this grants a reduction in taxes to sell those products. The 128GB iPhone 14 costs R$7,599 ($1,520) in Brazil. However, customers can now find the same model for around R$5,000 ($1,000) in local retail stores.
Apple also sees benefits from producing iPhones in Brazil. Aside from reducing its dependence on China, the company is able to circumvent some of the issues that have stemmed from China’s local COVID policies. At the same time, there are also political disputes affecting Apple’s suppliers.
Back in November, Apple warned investors and customers for the first time that the availability of the iPhone 14 Pro would be quite limited in the 2022 Holiday Season because of the situation in China. According to a recent report, Apple has tripled production of iPhones in India since then.
Even if the assembly of iPhones in Brazil is only focused on the local market, it can be enough to avoid supply shortages in the country. For the iPhone 15 later this year, Apple is hoping that assembly will begin in China and India simultaneously.
Stay tuned for additional details as they become available.
Via 9to5Mac and MacMagazine