Beta
×

Welcome to the Slashdot Beta site -- learn more here. Use the link in the footer or click here to return to the Classic version of Slashdot.

Thank you!

Before you choose to head back to the Classic look of the site, we'd appreciate it if you share your thoughts on the Beta; your feedback is what drives our ongoing development.

Beta is different and we value you taking the time to try it out. Please take a look at the changes we've made in Beta and  learn more about it. Thanks for reading, and for making the site better!

Is Apple Moving iPad Production to Brazil?

samzenpus posted more than 2 years ago | from the moving-to-better-quarters-on-campus dept.

Apple 148

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."

cancel ×

148 comments

Sorry! There are no comments related to the filter you selected.

An effort to avoid tariffs in Brazil (2)

crow (16139) | more than 2 years ago | (#37517294)

Brazil has the worst tariffs on imports. If Apple has decided that the Brazil market for iPads is large enough, it makes sense to move production there to avoid the tariffs.

Re:An effort to avoid tariffs in Brazil (0)

Anonymous Coward | more than 2 years ago | (#37517338)

there will probably be a bigger reason then the the people in brazil that want an Ipad. I don't think brazil is anywhere near a 25% share in the Ipad market.

must be cheaper for some reasons.

Re:An effort to avoid tariffs in Brazil (1)

Third Position (1725934) | more than 2 years ago | (#37517406)

It'd be interesting to know what those reasons are - I'm still not seeing the incentive here. I note that the Brazilian factory is still owned by Foxconn, so it's not like they're changing manufacturers. I'd expect Foxconn would manufacture them wherever they could build them the cheapest. What advantage does Brazil offer? Still not seeing it....

It's more efficient... (3, Funny)

_0xd0ad (1974778) | more than 2 years ago | (#37517444)

They'll be produced by the brazilians!

Re:It's more efficient... (2, Funny)

roman_mir (125474) | more than 2 years ago | (#37518288)

Right, Bush heard that 2 Brazilian people died, he sent his condolences but only later asked how much is a brazilion?

Re:An effort to avoid tariffs in Brazil (5, Interesting)

HereIAmJH (1319621) | more than 2 years ago | (#37517542)

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.

Re:An effort to avoid tariffs in Brazil (4, Insightful)

erroneus (253617) | more than 2 years ago | (#37517680)

Let's not forget having to trust the Chinese government.

Re:An effort to avoid tariffs in Brazil (2)

Antimatter3009 (886953) | more than 2 years ago | (#37518222)

Or simple marketing. Being able to say your product is not manufactured in China is probably worth something these days, rightly or wrongly. There's also a possibility of environmental concerns. Though I admit ignorance as to whether Brazil is actually better in that area, China has quite a rep for pollution. Apple gets a well deserved bad rep for a lot of things, but I think they do legitimately care about the environment to some extent and, again, environmentally friendly is also good for marketing.

Re:An effort to avoid tariffs in Brazil (3, Insightful)

erroneus (253617) | more than 2 years ago | (#37518350)

Well, I saw the movie "Rio" recently and they looked pretty friendly there... and all the birds and animals talk too. Gotta be a nice place I think.

Taiwan or mainland China - which one? (0)

doubleyou (89602) | more than 2 years ago | (#37519312)

Let's not forget having to trust the Chinese government.

To which Chinese government do you refer? The PRC or the ROC?

Re:An effort to avoid tariffs in Brazil (3, Interesting)

famazza (398147) | more than 2 years ago | (#37518272)

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 [google.com.br] (as translated by Google Translate)

Some reasons not too: (1)

alexander_686 (957440) | more than 2 years ago | (#37519068)

Overvalued Brazilian Real – Discourages exports.
Highly regulated employment market
Very slow court system (to settle contract disputes)
Highly complex tax system (most complex one in the Americas)

Brazil is getting better, but I can’t see Apple exporting IPads from Brazil to the US / Europe.

Re:Some reasons not too: (1)

That Guy From Mrktng (2274712) | more than 2 years ago | (#37519754)

Because nobody else in south America would like an iPad, that fad is strong around here and almost every country have trade agreements with Brazil.

China > USA > $country
Brazil > $country

Also south America seems like the only continent thats not having financial problems at the scale of those in USA and EU. Probably the product curve [wikipedia.org] reached the top in developing nations.

tl;dr: we milked people here first, now move on to milk anyone able to pay for our stuff there

Re:An effort to avoid tariffs in Brazil (2)

morcego (260031) | more than 2 years ago | (#37517628)

What advantage does Brazil offer?

http://www.youtube.com/watch?v=wg3SvxoyRFY [youtube.com] (NSFW --- kinda)

Re:An effort to avoid tariffs in Brazil (1)

amnesia_tc (1983602) | more than 2 years ago | (#37517886)

Obnoxious music? I'm not seeing that as an advantage.

Re:An effort to avoid tariffs in Brazil (1)

morcego (260031) | more than 2 years ago | (#37518004)

Sorry, I had my headset off. The music is awful, so I recommend muting it before watching the video.

Re:An effort to avoid tariffs in Brazil (1)

LateArthurDent (1403947) | more than 2 years ago | (#37517836)

It'd be interesting to know what those reasons are - I'm still not seeing the incentive here. I note that the Brazilian factory is still owned by Foxconn, so it's not like they're changing manufacturers. I'd expect Foxconn would manufacture them wherever they could build them the cheapest. What advantage does Brazil offer? Still not seeing it....

Well, the Foxconn factory is within the Free Economic Zone of Manaus [wikipedia.org] . The Brazilian government offers various significant tax incentives/exemptions to industries there. Those incentives, coupled with location advantages just might make up for the increase in wages as compared to China, although I don't know enough about it to state that this is a fact.

Re:An effort to avoid tariffs in Brazil (0)

Anonymous Coward | more than 2 years ago | (#37518340)

AFAIK, the Foxconn factory is in Jundiaí, near São Paulo. That's almost as far away from Manaus as possible in Brazil. However, the São Paulo state government is pretty aggressive in cutting taxes for big industrial complexes implemented onstate; that helps increase the state's industry and employment levels. Quite sure Foxconn got some very nice incentives for this factory.

Re:An effort to avoid tariffs in Brazil (1)

LateArthurDent (1403947) | more than 2 years ago | (#37519664)

AFAIK, the Foxconn factory is in Jundiaí, near São Paulo. That's almost as far away from Manaus as possible in Brazil. However, the São Paulo state government is pretty aggressive in cutting taxes for big industrial complexes implemented onstate; that helps increase the state's industry and employment levels. Quite sure Foxconn got some very nice incentives for this factory.

I stand corrected. I saw this article [itdecs.com] which mentions they also have factories in Manaus, but it does appear you're correct, and the Jundiai one is where the bulk of the operation takes place.

Re:An effort to avoid tariffs in Brazil (1)

lcarnevale (1691570) | more than 2 years ago | (#37518020)

They may have made some kind of arrangement with the government. I live in Argentina and the gvmnt stopped the import for most of Apple products, this may include even the iPhone 5, because of the opening of a Samsung assembly plant, according to the rumors. I don't think the idea of an arrangement of that kind in Brazil to be too weird.

Re:An effort to avoid tariffs in Brazil (-1)

Anonymous Coward | more than 2 years ago | (#37518936)

Because Brazil strip-searches all incoming Americans in retaliation for the TSA doing the same to their people?

Nice. An Apple factory in a country obviously hostile to US interests. Wonder what Apple will do when the government nationalizes the Foxconn factory and takes the Apple IP for their own stuff.

Re:An effort to avoid tariffs in Brazil (0)

Anonymous Coward | more than 2 years ago | (#37518146)

then: a point in time than: a comparison

Re:An effort to avoid tariffs in Brazil (0)

Anonymous Coward | more than 2 years ago | (#37519008)

Hotter transexuals?

Re:An effort to avoid tariffs in Brazil (1)

Truekaiser (724672) | more than 2 years ago | (#37519428)

it's most likely due to the changes in china. the media spotlight of what happened in the foxconn plant in china probably has put just enough pressure there to put in place even some vapor like protections. so china does not get labeled(and rightly it should get labeled) as a place where companies push workers to suicide just for lower manufacturing costs. and so the multi-national company foxconn moves production to another country with very lax, to no worker rights because god forbid their executives and share holders earn a few percentage less money so the people who make the apple products among other companies products are treated like living beings instead of biological robots.

Re:An effort to avoid tariffs in Brazil (1)

alen (225700) | more than 2 years ago | (#37517346)

there is also the americas trade zone or whatever it's called. I think anything made in each of the american continents can be sold tariff free here

and the chinese new year is not the best scheduled holiday for 1Q product launches

Re:An effort to avoid tariffs in Brazil (1)

dmbasso (1052166) | more than 2 years ago | (#37517516)

No, there is not. Do a little bit of research before posting wrong information.

http://en.wikipedia.org/wiki/Free_Trade_Area_of_the_Americas [wikipedia.org]

Re:An effort to avoid tariffs in Brazil (0)

Anonymous Coward | more than 2 years ago | (#37519194)

WoW. Just WoW.

Research yourself troll.

http://en.wikipedia.org/wiki/Mercosur

Re:An effort to avoid tariffs in Brazil (0)

Anonymous Coward | more than 2 years ago | (#37519526)

Yeah, there is, but as he suggested in his post, he wasnt sure of the exact name: Mercosur.

You can just about say that anything made in South America can be sold within that continent tariff-free.
(not exactl true, but close enough that Mercosur should be what one thinks of when reading his post,
  not dredging up the numerous free-trade treaties with didnt succeed, but the one that brazil is in that did)

Re:An effort to avoid tariffs in Brazil (0)

Anonymous Coward | more than 2 years ago | (#37519680)

No, there is not. Do a little bit of research before posting wrong information.

http://en.wikipedia.org/wiki/Free_Trade_Area_of_the_Americas [wikipedia.org]

Yes, there is. Do a little bit of research before posting wrong information.

http://en.wikipedia.org/wiki/Mercosur [wikipedia.org]

Re:An effort to avoid tariffs in Brazil (0)

Anonymous Coward | more than 2 years ago | (#37517710)

Yea, knowing the "whatever it's called" might have helped you out there. For future reference, it's the North American Free Trade Agreement.

Re:An effort to avoid tariffs in Brazil (0)

Anonymous Coward | more than 2 years ago | (#37517956)

I think the GP was talking about FTAA, not NAFTA. Brazil is not part of FTAA anyway.

Re:An effort to avoid tariffs in Brazil (0)

Anonymous Coward | more than 2 years ago | (#37517530)

Why don't we have similar tariffs? Seems like that would drive production back to the US, no? Of course, costs would go up as well. Hmm, bring back manufacturing and pay more, or pay less but have many manufacturing positions continue to leave the country?

Re:An effort to avoid tariffs in Brazil (3, Insightful)

hedwards (940851) | more than 2 years ago | (#37517678)

Because if we bring manufacturing jobs back to the US, it decreases the leverage that corporations have when extorting government benefits. Plus it might lead to the unfortunate situation where poor people can afford to live without having to beg for scraps.

Re:An effort to avoid tariffs in Brazil (1)

v1 (525388) | more than 2 years ago | (#37518182)

drat. mod pts and no +1 Sarcastic option.

Re:An effort to avoid tariffs in Brazil (2)

Bemopolis (698691) | more than 2 years ago | (#37518584)

That's what "Insightful" is for.

Re:An effort to avoid tariffs in Brazil (0)

Anonymous Coward | more than 2 years ago | (#37518928)

That's funny and all, but those US manufacturing jobs? They're gone. Just - gone.

When companies move manufacturing back to the US, they don't hire the same number of workers they'd have hired in China. Instead, they build robots.

So you might get something like 10% actual human jobs back in the US, but the rest will be done by robots. Hell, just about any manufacturing left in the US is already done by robots. Even things you'd think couldn't be done by robots, like milking cows, are done by robots these days. No, seriously, this isn't a joke. [wikipedia.org] The milk you get from your local dairy more than likely was milked by a robot, sent to a robotic bottling plant, and then pasteurized and bottled by a robot.

About the most a human does any more is periodically check on the robots.

Those manufacturing jobs that the US lost to countries with cheaper labor? If they hadn't been shipped overseas, they would have been lost to robots in the US.

Re:An effort to avoid tariffs in Brazil (1)

h4rr4r (612664) | more than 2 years ago | (#37519014)

And who makes the robots?

This milking robot could it be converted for another more sexy purpose?

Re:An effort to avoid tariffs in Brazil (1)

cyfer2000 (548592) | more than 2 years ago | (#37519050)

"And who makes the robots?" hmmm... robots?

Re:An effort to avoid tariffs in Brazil (1)

michelcultivo (524114) | more than 2 years ago | (#37518990)

Hi all. Brazil is closer to the USA than China, and our senators approved a new law that Tablets will have discount on taxes, now it will be better to make it in Brazil than China. Our market is in expansion and we have more and more users buying Table as it first computers. Bye

They mispelled the minister's name (0)

Anonymous Coward | more than 2 years ago | (#37517308)

Aolizio Mercadante, the Brazilian Minister of Science and Technology

That would be Aloizio Mercadante. "Aolizio" is not even a name.

Re:They mispelled the minister's name (5, Funny)

dintech (998802) | more than 2 years ago | (#37517334)

"Aolizio" is not even a name.

Yes it is, it means Son of Garlic Mayonnaise.

Re:They mispelled the minister's name (1)

michelcultivo (524114) | more than 2 years ago | (#37519022)

It's was a mistake, the correct name is: Aloizio Mercadante.

Re:They mispelled the minister's name (1)

tepples (727027) | more than 2 years ago | (#37517610)

That would be Aloizio Mercadante. "Aolizio" is not even a name.

Aloizio appears to be the Portuguese counterpart to Latin Aloysius, the little-known given name of a famous fictional mammoth [wikipedia.org] , and its German counterpart is Alois, as in Adolf Hitler's father [wikipedia.org] . (Godwin!) I'm not familiar with Brazilian politics (it takes a brazillion brain cells just to keep up with the politics of my own country), but I could see "Aolizio" as an attempt to put down Mercadante by tying him to some undesirable aspect of AOL.

Re:They mispelled the minister's name (0)

Anonymous Coward | more than 2 years ago | (#37518476)

AOL is a non-issue in Brazil. They tried to get a piece of our market. They couldn't have failed harder.

Eu, por exemplo.. (1)

Moheeheeko (1682914) | more than 2 years ago | (#37517312)

boas vindas ao nosso novo overlords rentÃvel

Re:Eu, por exemplo.. (0)

Anonymous Coward | more than 2 years ago | (#37517468)

Automatic translators often give ridiculous results. That's the case here.

Re:Eu, por exemplo.. (2, Funny)

Dogtanian (588974) | more than 2 years ago | (#37517732)

boas vindas ao nosso novo overlords rentÃvel

Automatic translators often give ridiculous results. That's the case here.

Oh, and how do you know his hovercraft *isn't* full of eels, you insensitive clod?!

Re:Eu, por exemplo.. (0)

Anonymous Coward | more than 2 years ago | (#37518280)

Babblefish: Portugeuse to English.

"welcome our new overlords Profitable"

I'm not sure (0)

Anonymous Coward | more than 2 years ago | (#37517314)

I hear their monkey problem is even worse now

Re:I'm not sure (0)

Anonymous Coward | more than 2 years ago | (#37518228)

I hear their monkey problem is even worse now

Yes, it is. We keep sending THEM back to EUA, but they insist in coming back here. Something to do about lack of native non-plastified females, but not sure...

People don't want new iPads every 3 years? (-1)

Anonymous Coward | more than 2 years ago | (#37517316)

Shocking! Who is gooing to buy a new iPad every 3 eyars for $600? Those hardcore fans, take one step back.

Same goes for Kindle by the way. Everyone now has their fancy calculator. No need to get another one at extraordinary cost.

I hope so! (1)

Anonymous Coward | more than 2 years ago | (#37517418)

China = A hoarde of communist slaves working away in terrible conditions with one aim: World domination for the Chinese Communist Party and its authoritarian ways. Terrible human rights situation, censorship, people generally not allowed to do as they please by the government, most companies actually owned by the CCP, corruption, most of the women are either bitches or brainwashed into doing all they can to help Hu Jintao

Brazil = Party all the time, hawt women everywhere, everybody is too busy having fun and consuming liquids with a high concentration of ethanol to be too serious about such evil things as world domination, a generally happy and stress-free bunch of lads.

I wish really that the jobs could be kept in the US because all this outsourcing has brought quite a lot of poverty to the place and the real cost is in the resulting unemployable underclass the US now has to support. You couldn't just kill them all but that would be the Chinese solution for it (or prevent them from having more than 1 child unless they can afford the fine for having a second child)

Re:I hope so! (3, Insightful)

rodrigoandrade (713371) | more than 2 years ago | (#37517594)

Brazil = Party all the time, hawt women everywhere, everybody is too busy having fun and consuming liquids with a high concentration of ethanol to be too serious about such evil things as world domination, a generally happy and stress-free bunch of lads.

True, it's party all the time over here, so we don't have to worry about corruption in government, high unemployment, high crime rate, high taxes, violence, crap public health and education systems, high taxes, crazy ass traffic, and other shit (besides high taxes) that leave this country economically far behind the other BRICs.

The truly sad part is that a brazilian-made iPad won't be any cheaper than the imported model we currently have. Brazilias usually spend the most on gadgets compared to other nations, due to... you guessed it, high taxes. Even if we have it our way, Apple will get greedy and charge whatever the market will bear (i.e. possiby lower taxes becomes Apple's margin).

And by the way, we drink acohol alright. Ethanol is for cars.

Re:I hope so! (1)

rodrigoandrade (713371) | more than 2 years ago | (#37517644)

Oh, almost forgot. Saying that Brazil has hot women everywhere is like saying the US has Natalie Portmans and Megan Foxes everywhere. I've lived in both countries, so I know.

Re:I hope so! (1)

M0j0_j0j0 (1250800) | more than 2 years ago | (#37517712)

go to Rio Grande do Sul, Florianopolis, there are Nats a Foxies everywhere...

Re:I hope so! (0)

Anonymous Coward | more than 2 years ago | (#37517966)

Florianopolis is in Santa Catarina... not here at Rio Grande... besides here the girls are far better.

Re:I hope so! (2)

Mister Whirly (964219) | more than 2 years ago | (#37517940)

I have also lived in both countries and can attest that Brasil has a much higher concentration of hot women than the USA does - speaking in general. But beauty is in the eye of the beholder I suppose.

Re:I hope so! (0)

Anonymous Coward | more than 2 years ago | (#37518658)

Are you sure they are women ?

Re:I hope so! (1)

Mister Whirly (964219) | more than 2 years ago | (#37518720)

To be honest, in some cases no - not from afar. But the penis is kind of a dead giveaway. Same with the Adam's apple.

Re:I hope so! (0)

Anonymous Coward | more than 2 years ago | (#37517958)

Except Megan Fox is not hot.

Re:I hope so! (1)

elrous0 (869638) | more than 2 years ago | (#37518008)

Megan Fox is not hot.

She is right up to the point where she talks.

Re:I hope so! (0)

Anonymous Coward | more than 2 years ago | (#37518352)

possiby lower taxes becomes Apple's margin
That is not how it works.

MR=MC marginal rev equals marginal cost. Lower price points means more units moved and possible higher profit. IF the equation is correct.

If the reason for higher prices is tariffs then there is a possibility they will lower prices and do better in volume. Now if their production costs are higher from moving to brazil then prices have the possibility of moving higher.

Any business that does not ride MR=MC like a bucking bronco will loose money. They will do that by controlling supplies, workers, taxes, and production levels.

Re:I hope so! (1)

morcego (260031) | more than 2 years ago | (#37517666)

I wish really that the jobs could be kept in the US because all this outsourcing has brought quite a lot of poverty to the place and the real cost is in the resulting unemployable underclass the US now has to support.

Well, that's what you get when you keep demanding lower prices.

Americans can be quite organized when they want. They have campaigned and blocked trade of various products in the past, by simply refusing to buy them (wasn't there something about tuna ? They refused to buy it until they started using more eco friendly nets ?). It can be done, it was done in the past. The only reason I can imagine for it not being done right now is: the people who can and buy those products don't care. The ones that care wouldn't be able to afford them, either at current prices or the higher prices if they were manufactured in the US.

not only that china has no worker / plant safety (1, Interesting)

Joe_Dragon (2206452) | more than 2 years ago | (#37517752)

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:I hope so! (0)

Anonymous Coward | more than 2 years ago | (#37518032)

China = A hoarde of communist slaves working away in terrible conditions with one aim: World domination for the Chinese Communist Party and its authoritarian ways. Terrible human rights situation, censorship, people generally not allowed to do as they please by the government, most companies actually owned by the CCP, corruption, most of the women are either bitches or brainwashed into doing all they can to help Hu Jintao

And the scary thing is that most of these things can be said about the American government too, to some degree.
Although in the USA the companies own the government, in China it's the other way around.

Re:I hope so! (0)

Anonymous Coward | more than 2 years ago | (#37518546)

Brazil... party all the time.

That's a fucking fantasy dude. You know... the Rio movie about birds? It's not really a documentary.

all kinds of crazy shit going on in brazil. Sure, the country is getting a lot better (might be the best in south america right now) but it's still brazil AKA lots of murderous little children with guns that want to murder you and snort coke off your skull.

I've been a lot of times there, and I've seen some bad craziness too.

Re:I hope so! (0)

Anonymous Coward | more than 2 years ago | (#37519724)

Have you been in Brazil, or Rio? There are places in here that are diferent from Rio, drug dealers, AK-47, beachs, prostitutes, etc. Big country, 190.000.000 people lives here, Rio have got about 6.000.000 only.

=)

Probably a Hon Hai decision (1, Interesting)

Animats (122034) | more than 2 years ago | (#37517436)

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 [wikipedia.org] and RCA [wikipedia.org] , once major companies, are now.

Not necessarily (4, Insightful)

Sycraft-fu (314770) | more than 2 years ago | (#37517524)

There are companies that don't manufacture, but still do real work. nVidia is a great example. They don't fab their chips, TSMC does. They also don't build the cards (other than reference boards for OEMs to look at) OEM partners like eVGA do. However they make a lot of money and it isn't off of patent trolling or something. What they do is design the chips. They have shitloads of R&D and simulation and so on and their engineers design the chips, write the drivers, and so on. That they don't own the facilities to make them is of no real consequence. It isn't like someone else could just up and make a graphics chip with no effort. The R&D is as hard or harder than the manufacturing.

Not saying that is quite the same for Apple, just saying that you don't have to be a manufacturer to be doing something worthwhile.

Re:Not necessarily (0)

Anonymous Coward | more than 2 years ago | (#37517858)

Yes but do you know what happens when a contracted manufacturer becomes "too good" at what it does? It rises up and becomes your competition. Apple relies heavily on FOXCONN and one day you might see Foxconn products competing with Apple instead of manufacturing FOR them. Just read the story on how Acer made a name for itself.

Re:Not necessarily (1)

Belial6 (794905) | more than 2 years ago | (#37518050)

A good example is grocery stores. How many grocery stores do any food production? As far as I know, none. Some might have a bakery on site but they are still getting the parts from some other manufacturer. Grocery stores are definitely doing real work, and something worthwhile.

Production is harder to replace (1)

mangu (126918) | more than 2 years ago | (#37519104)

If you have production and want to have design, what do you do? Hire engineers, it costs something in the order of $100 k in tuitions to create a new engineer, there are thousands of engineers graduating every year all over the world.

If you have design and want to have production, what do you do? Building a new factory costs on the order of $1 billion, that's four orders of magnitude more than educating someone to be an engineer.

Giving priority to design over manufacturing only works as long as there is excess manufacturing capability in the world, so you can get a new fabricating facility for less than it would cost your current fabricator to get into the design business.

Believing the current situation will last forever is how big corporations die.

Not a hardware company (0)

Anonymous Coward | more than 2 years ago | (#37518624)

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.

No, Apple is not "hollowed out." Apple is exactly what it's been for the last thirty years: a huge, very profitable software company that sells slick consumer software bundled with computer- and phone-shaped license restriction dongles.

RCA was a hardware company that didn't keep up with the times, got bought out, and now exists only as a name.

Westinghouse, now known as CBS, is a different example: a one-time hardware company that gradually sold off its hardware businesses, one by one, getting good money for them, which it then invested in becoming a media conglomerate. (This is like what IBM did, except IBM went into consulting instead of media.)

Re:Probably a Hon Hai decision (0)

Anonymous Coward | more than 2 years ago | (#37518840)

Apple is shopping around. They switch manufacturers to keep the guys in China on their toes.

taxes (0)

Anonymous Coward | more than 2 years ago | (#37517484)

I wonder if Apple would pay all the high taxes we pay here in Brazil!

Speculation on rumor and innuendo (4, Insightful)

UnknowingFool (672806) | more than 2 years ago | (#37517492)

So based on rumors, JP Morgan analysts lowered production forecasts which leads to speculation that iPad is moving production to Brazil. I don't know if I would place much stock in these analyst forecasts. They're almost never right. When the iPad 2 first came out some analysts forecasted really high numbers like 8M the first quarter only to downgrade them later. Their reasoning was since the iPad 1 sold about 7M the previous quarter, the iPad 2 should outsell it. Well the analysts did think that the previous quarter being the holidays or that it might take time to ramp up production for a new product were factors.

Right now it's only rumors that Apple has cut orders to their existing suppliers. It may not be true. Even if it were true, if Apple has done so to bring on more suppliers nothing says those new suppliers are Brazilian. It might be that Apple is simply bringing on other Asian suppliers. Some people are speculating that this means the iPad 3 will launch soon. I would think it is more likely that Apple has cut orders because they are about to launch the iPhone 5 (or whatever it is called) and the iPad 2 shares more of the same components with the iPhone 4.

Re:Speculation on rumor and innuendo (1)

NatasRevol (731260) | more than 2 years ago | (#37517986)

Analysts. Is there nothing they can get right?

http://daringfireball.net/2010/09/kumar_track_record [daringfireball.net]

Re:Speculation on rumor and innuendo (1)

DaveRexel (887813) | more than 2 years ago | (#37519536)

Betting on a 7-inch iPad based on a Kumar research note is pretty much like betting on the time of day based on a stopped clock.

That's those pesky "Analysts" in a nutshell.

Re:Speculation on rumor and innuendo (1)

CheerfulMacFanboy (1900788) | more than 2 years ago | (#37519126)

So based on rumors, JP Morgan analysts lowered production forecasts which leads to speculation that iPad is moving production to Brazil. I don't know if I would place much stock in these analyst forecasts. They're almost never right. When the iPad 2 first came out some analysts forecasted really high numbers like 8M the first quarter only to downgrade them later.

Well, it depending on how you count, they were right. In FQ2011, the first the iPad 2 was available, they only sold about 2.5 million of them - in the 3 weeks from March 15th.

Re:Speculation on rumor and innuendo (1)

MikeURL (890801) | more than 2 years ago | (#37519156)

There is almost no way that Apple is cutting production. If anything Apple is going to have a tough time keeping up with demand this holiday season.

All the mindshare is on tablets right now. That does not mean that notebooks are dead but it does mean that the marginal consumer is breaking toward a tablet right now. Even the eee pad slider, which no one knows about, sold out at 2 of the 3 big retailers (B&H and Newegg) within just a few days of being released.

If the tablet market were falling apart--we'd know it. It isn't.

Foxconn has a plant in brazil (0)

Anonymous Coward | more than 2 years ago | (#37517496)

And brazil has protective import tariff, but probably the same cost of "export" as china, moreover it's closer to the US.
So although the cost of "assembly" is/was about 2 to 10 time higher than in china (when there were discussions around assembling the olpc in brazil for the local market) it might well be lower today due to the exchange fluctuations, and the cost of transport might also offset this somewhat.
Particularly to ship ipads to the east coast.

Safe(r) from corporate espionage (2, Insightful)

spiffmastercow (1001386) | more than 2 years ago | (#37517676)

Producing stuff in Brazil might be a bit more expensive in the short term, but they're a lot less likely to steal all of your R&D and sell it to your competitor.

Re:Safe(r) from corporate espionage (1)

morcego (260031) | more than 2 years ago | (#37517730)

As an IT person who have worked to identify and block corporate espionage in the past here in Brazil, I would have to say that, even if it is a smaller problem than in China, it is still pretty big. But then again, isn't it everywhere ?

and that got china a unsafe high speed rail system (0)

Joe_Dragon (2206452) | more than 2 years ago | (#37517840)

and that got china a unsafe high speed rail system that is a copy of japans one's with alot of safely stuff taken out.

No News in Brazil (0)

Anonymous Coward | more than 2 years ago | (#37517688)

I'm from Brazil and this is no news here. President Rousseff has promised, since the beginning of her term, to bring the production of iPads to Brazil. There are rumours that the government is studying some new incarnation of the OLPC program with tablets, but I doubt that it would be with iPads, otherwise I'll be back to high school again!

Tax reduction (1)

martui (1055272) | more than 2 years ago | (#37517698)

Brazil just reduced taxes for tablets produced within the country. Apple may or may not be moving its production to Brazil, but it is certainly interesting that this speculation come right after this Brazilian gov't move. Also, there is Mercosul, which is an area of (almost) free commerce in South America that has Brazil, Argentina, Uruguay, Paraguay and Chile as members (Venezuela is also part of Mercosul, I think).

What's an "insider"? (3, Insightful)

gnasher719 (869701) | more than 2 years ago | (#37517704)

"Insiders" don't have to make stupid guesses what this might mean. Insiders _know_ what Apple is doing. That's because they are inside, and that's why they are called "insiders".

The people making guesses about a production move to Brazil are either overpaid information whores who don't have a clue, or some random MacRumors poster, not having much more of a clue, but at least not pretending and getting paid for it.

Re:What's an "insider"? (0)

Anonymous Coward | more than 2 years ago | (#37517814)

They might also be actual Apple insiders trying to downplay the widespread rumor that Apple is cutting down iPad production.

Mercadante (2)

morcego (260031) | more than 2 years ago | (#37517716)

FTFA:

Aolizio Mercadante, the Brazilian Minister of Science and Technology, confirmed to the press earlier this month that Foxconn’s Jundiaí, Brazil factory is ready to begin production

I would take that with a grain of salt. Mercadante and his political party have strong root and support from blue collar workers. Heck, their party name can be translated as "Workers Party". So this could be nothing more than a political move to increase his popularity with his support base.

Mercadante + Foxconn ... Yeah, that's a source you are really trust ...... NOT.

Re:Mercadante (0)

Anonymous Coward | more than 2 years ago | (#37518234)

You are absolutely right. If Mercadante says that hte iPad is coming, is because it will never be produced here. A bunch of liars, more than the average politican.

Re:Mercadante (0)

Anonymous Coward | more than 2 years ago | (#37518632)

If you don't think too much of Mercadante, please, read the stupidity that his so-called doctoral thesis is. Your opinion will find new lows. I mean, iPads are coming from China to Brazil by the hole that it made when it sunk.

Re:Mercadante (0)

Anonymous Coward | more than 2 years ago | (#37518894)

Oh, I saw that "thesis". Pure political BS, as usual.

Bias much? (0)

Anonymous Coward | more than 2 years ago | (#37517778)

Just because you own AAPL doesn't mean you should post ehwe weedo woomoh on /.

inside scoop (0)

Anonymous Coward | more than 2 years ago | (#37518104)

well, not totally true inside scoop, but as a commuter that regularly sees Foxconn's facility on the roadside while driving from Campinas to São Paulo, I can tell you that it looks like they're expanding big time. From last month to last friday, a quite big area right next to the plant got totally cleared and leveled.
What does it mean?
Y U NO

Thank god i don't buy Apple (0)

Anonymous Coward | more than 2 years ago | (#37518148)

If Apple decides to go to Brazil to manufacture devices, general public can expect them to be as crappy as any other technology device manufactured in that country, i mean, here in Argentina we get phones, cars and most electronic devices from Brazil, and, well, they suck!, poor, pooooooor quality.

Not Apple moving (1)

Quila (201335) | more than 2 years ago | (#37518974)

Hon Hai/Foxconn, Apple's iPad manufactuer in China, is also setting up production in Brazil. It's nothing more than that. I wouldn't expect a Brazilian and Chinese iPad to be any different, except maybe in the bikini line.

Juan Valdez! (0)

bryan1945 (301828) | more than 2 years ago | (#37518226)

Or is that Columbia? Not sure.

Anyhoo- with the coffee powered car article + iPad = 3x perfomance! Yee ha!

Crime, crime, crime (0)

Anonymous Coward | more than 2 years ago | (#37518588)

Brazil is the place where airbnb would hava a hundred times more problems then in US to operate its business with the current model. i.e. it wouldn't run in Brazil, at all. Whenever people start thinking about some web business in Brazil, their main concern is fraud prevention.

Amazon is moving to Brazil too (just CloudFront) (1)

edsar (2468942) | more than 2 years ago | (#37518714)

From our data is looks like the other Big "A" is also making investments in Brazil. http://www.cedexis.com/is-amazon-cloudfront-in-brazil/ [cedexis.com] Ed ed@cedexis.com

Good idea (0)

Anonymous Coward | more than 2 years ago | (#37518824)

Brazilians are much less likely to kill themselves.

Load More Comments
Slashdot Login

Need an Account?

Forgot your password?

Submission Text Formatting Tips

We support a small subset of HTML, namely these tags:

  • b
  • i
  • p
  • br
  • a
  • ol
  • ul
  • li
  • dl
  • dt
  • dd
  • em
  • strong
  • tt
  • blockquote
  • div
  • quote
  • ecode

"ecode" can be used for code snippets, for example:

<ecode>    while(1) { do_something(); } </ecode>