After a few days of rumors that it would begin producing iPads in Brazil, Taiwanese company Hon Hai Precision Industry (Foxconn is a subsidiary) has confirmed that it will do just that, according to a report by Digitimes.
The investment is said to be worth $12 billion over five years, according to FocusTaiwan citing The Commercial Times newspaper.
Foxconn is known for its low-cost manufacturing operations in China, where a rash of suicides has thrown it – and by extension Apple – under heavy criticism and scrutiny.
One of the most likely reasons the company wants to expand into Brazil, however, is to manufacture Apple products for that nation, thus avoiding high tariffs so it sell at lower prices there. Currently the cheapest iPad in Brazil is $860, in contrast to $499 in the US.
Stay updated on the go with our mobile app.
Get latest insights with smoother, more personalized experience through TIA mobile app.
