Apple's Strategic Shift: iPhone 16e Assembled in Brazil Marks New Manufacturing Era

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Apple's Strategic Shift: iPhone 16e Assembled in Brazil Marks New Manufacturing Era

In a significant change to its global manufacturing strategy, Apple has introduced the iPhone 16e with local assembly in Brazil from the very first launch. This move not only highlights Brazil's emerging role in Apple's production network but also signals a potential shift away from a heavy reliance on China for iPhone manufacturing.

The iPhone 16e has been assembled in Brazil, marking the first instance of a new iPhone model being produced locally right from launch. While Brazil has participated in Apple's supply chain for years, this integration reflects a deeper commitment to diversifying production locations. Customers in Brazil have started to receive their devices with the distinct label "Assembled in Brazil – Brazilian Industry." Meanwhile, the Apple Store in Brazil lists the model with a unique identifier ending in "BR/A," confirming its local assembly status. On the other hand, imported units are marked with "BE/A."

Insights from Bloomberg's Mark Gurman suggest that assembling the iPhone in Brazil is financially strategic due to the country imposing only a 10 percent tariff on US imports, making it a more affordable option compared to other regions.

iPhone 16e
Image credit — PhoneArena

Should this initiative prove successful for the iPhone 16e, it could pave the way for Apple to assemble additional models in Brazil. Current documents from Brazil’s telecom regulator affirm that the 16e is being manufactured not only in Brazil but also in China and India. The local price for the device stands at approximately $890, but thanks to tariff exemptions on locally produced items, it can be found in retail settings for about $670. Comparatively, it retails for around $600 in the US.

While uncertainty surrounds the electronics market due to temporary pauses and potential shifts in policy, this new assembly strategy offers Apple a chance to stabilize and thrive in fluctuating markets. Establishing a successful manufacturing base in Brazil may lead Apple to consider this country and India for future endeavors, resulting in potential cost savings for consumers in various regions.

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