Since Covid-19, Apple majorly started moving its production into different countries. In recent days, the company leased a building in Bangalore, India for manufacturing iPhones in India. Apple also opened its doors to two Flagship stores in India, one in Mumbai BKC, which is the financial hub of the city, and the other in Saket, Delhi. The Apple BKC Store consists of 22,000 square feet whereas the Delhi Store consists of 10,000 square feet. Tim Cook made a personal visit to India and opened the doors of both stores while meeting the fans who were waiting for hours and hours.
A question arises here, why is Apple diversifying its supply chain from China to other parts of the globe?
The main reason is the pandemic and the ongoing trade tensions between the United States of America and China. Apart from it, the company is getting more revenues and business from countries like Brazil, India, etc.
Brazil Welcomes Apple
The all-new iPhones, especially the iPhone 14 are now also made in India. Similarly, Brazil welcomes Apple when it comes to the production of the iPhone 14. The production has been diversified even further from China to Brazil. As a result, China loses its major production hub due to Covid-19. Recently, a MacMagazine reader bought a new iPhone 14 and was astonished to see the text “Assembled in Brazil” on the box of the new iPhone. It seems to be manufactured by Foxconn Brazil, located in Sao Paulo.
However, till now only the iPhone 14 is being assembled in Brazil and there is no update on the Pro and Plus models. iPhone models sold in Brazil, and assembled in China are identified as “BZ/A or BE/A”. The model number, MLPF3BR/A in the MacMagazine reader’s iPhone 14 box confirms that the device was assembled in Brazil.
Looking at the economic conditions of the country, Brazil also started assembling iPhone 13 and the iPhone SE series which are less expensive, making them more affordable for local people. However, the iPhone 13 mini is excluded from the list.
Since countries like Brazil impose high taxes on imported products, some companies invest in different countries to assemble the products within the country itself, Apple being one of them. This could help in reducing taxes, making it easy for the people in Brazil to purchase such products.
The 128GB variant of the iPhone 14 costs R$7599 ($1520) in Brazil. However, people can now also find the same for R$5000 ($1000) in local retail stores.
Apple and China
Apple benefits a lot economically and financially when it comes to producing iPhones in different countries. This shows how the company is trying to reduce its dependency on China. The Covid policies of China have deeply affected the company’s facilities and made waiting periods longer for everyone to purchase any iPhone or any Apple Product.
In November of 2022, Apple warned their customers and investors about the limited stock availability of the iPhone 14 Pro Series due to the Holiday season in China and after that, the values of the iPhones produced in India tripled, according to a recent report by Bloomberg. This resulted in the products having less waiting periods and being easily available for the customers to buy.
Similarly, the waiting period for the iPhone 14 is expected to be shorter in Brazil too, in the same way it’s in India.
– By Kush Thakkar