President Of Brazil Drops Taxes To Guarantee Your Next iPad Is Made In Rio

President Of Brazil Drops Taxes To Guarantee Your Next iPad Is Made In Rio

Faced with the ongoing PR crisis of suicides and alleged human rights violations of its Chinese contractors, it’s looking increasingly like Apple might shift a sizable portion of their iPad production to Brazil. To prepare, Brazil’s president lowered taxes on producing and purchasing tablets in the South American country.

Tuesday, Brazil Communications Minister Paulo Bernardo announced the government would provide tablets regulatory relief amounting to a 36 percent price cut. One measure will put equipment for tablet manufacture on par with incentives offered PC notebook makers. The changes exempt tablet producers from a 9.25 percent PIS tax, cut the country’s IPI sales tax to 3 percent from 15 percent and reduce the import tax.

“Regulation opens the door for more investment,” Bernardo is quoted in the local press. Last month, Brazil President Dilma Roussef told a Beijing audience Foxconn has invested $12 billion in a possible manufacturing site. The site could begin making iPad’s as soon as November, another Brazil minister said.

Brazil’s enticement of iPad manufacturing is part of a concerted effort to increase foreign companies relocating to the nation. The South American country reported a 42 percent increase in consumer imports during 2010.

[Folha.com, Bloomberg]

  • lemarques

    Errrr.. Brazil is not the same as Rio…. actually the plant will be in Jundiai, a city in the state of Sao Paulo, at least 500km from Rio….

  • ar_augusto

    Given Brazil’s condition as the country with the biggest tax burden in the observable universe, I will only believe it when I see an iPad being sold here with a somewhat reasonable price…

  • Victor Melo Artois

    And yes, your next iPad is going to be made by monkeys in the middle of jungle.

    Ridiculous title for the post, ridiculous analogy between Brazil and Rio.Where did idea of Rio come from?

  • Gabriel Fehr

    I’m brazilian and I love this blog. But you need to know that Brazil is bigger than Rio. Here Foxconn is located in Jundiaí, São Paulo and also in Manaus, Amazônia. Probably the iPad will be mounted in Jundiaí. 

  • William

    I was so excited to see my country’s flag I even missed the “Rio” deal. Relax people, Rio is sort of synonymous with Brazil, soon São Paulo will be as popular as Rio for the rest of the MacHeads.

  • Roberto Barreto

    As you can see in the comments below, Brazil’s way bigger than rio, and the site will be in São Paulo’s country (Jundiai) where a Foxconn site already exists. Please to read more before making stupid posts.

  • Mateus

     ow man, what a mistake! kkkk ta sabendo legal hein kkk study a bit more ;)

  • Carlos Yamada

     google maps redneck??? 

  • Caio Loki

     Oh dear god, don’t you guys get it’s a joke? There is no mention whatsoever of the manufacturing site’s location in the actual post. We all know Rio is the most famous city in Brazil (obviously). It’s kind of a journalistic gimmick to cite Rio in the post’s title. Get over it.

    BTW, I am brazilian. Love the blog. Keep up the AWESOME work.

    Nice photo of our flag, too. 

  • Eugene Trumbo

    I am all for Brazil becoming a more developed, prosperous, and just and equitable country especially for the poor in Brazil.  Dilma Roussef is an excellent President to advance those goals.

  • Al

    “Designed by Apple in California. Made in Brazil.”

    Awesome.

  • Ernesto Valladares

     I live in Brazil full time and I am American… I have the luck to be able to travel to and from the USA … believe me when I tell you that prices in Brazil are ridiculous and just disrespectful to the people of Brazil ..Oil is abundant and prices are higher than anywhere else…sad…. political thieves  are destroying a country that has the brightest future in South America…

    It is sad when you can buy a ticket to Miami, stay there for several days in a good hotel , buy an iPad and all that would still be cheaper than buying an ipad in a store in Brazil….

About the author

Ed SutherlandEd Sutherland is a veteran technology journalist who first heard of Apple when they grew on trees, Yahoo was run out of a Stanford dorm and Google was an unknown upstart. Since then, Sutherland has covered the whole technology landscape, concentrating on tracking the trends and figuring out the finances of large (and small) technology companies.

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