Is Apple Moving iPad Production to Brazil?

zacharye writes "According to JP Morgan analysts Mark Moskowitz and Gokul Hariharan, Apple lowered fourth-quarter iPad orders 25%, the first time there has been a production decrease. This decrease has led some to speculate that the move is more than a response to lower demand, or a wish to operate with reduced inventory. Some insiders see this as a move in production from China to Brazil."

Comments

Probably a Hon Hai decision

[Animats]

This may just be Hon Hai deciding to move some production capacity. Hon Hai makes the products, remember. Apple is a "hollowed out" company, with no manufacturing capability.

Historically, that's the beginning of the end. The day may come when Apple is just a brand name licensed to real manufacturers. That's what Westinghouse and RCA, once major companies, are now.

Re:An effort to avoid tariffs in Brazil

[HereIAmJH]

What advantage does Brazil offer?

Higher wages, but...
Shorter shipping distance
Less product in the middle of the ocean
Possibly more favorable tariffs
Less bad press about working conditions and employees committing suicide?
If they weren't keeping the same supplier I'd say possibly better new product security.

not only that china has no worker / plant safety

[Joe_Dragon]

not only that china has no worker / plant safety.

After that high speed rail crash they moved to fast to cover it up.

China also likes to copy stuff on the cheap and cut corners all over the place.

Re:An effort to avoid tariffs in Brazil

[famazza]

Some of the real reasons for Apple/Foxconn chose to produce iPads in Brazil:

• Better engeneers
• Sorter shipping distance
• Saner time zone

But the most important reason: Considerable tax reduction (as translated by Google Translate)