updated 10:15 pm EDT, Fri June 17, 2011
Foxconn to make iPads in Brazil this Sept.
The Brazilian Minister of Science and Technology has said that Foxconn will begin manufacturing the iPad 2 by September. According to the Minister, Apple had hoped to have iPad production begin in Brazil in late July. However, due to construction delays associated with the new Foxconn production line and a shortage of skilled labor, the start of manufacturing had to be postponed.
While many of the new iPads will be destined for countries outside of Brazil, the plant will supply iPads for the local market. Due to the extremely high import taxes on foreign manufactured products, the locally made iPads will sell in Brazil for around 40% less than they do now.
The Brazil government has negotiated favorable taxation deals for the new operation, which helped to facilitate the development of the new production line. Apple along with Foxconn has reportedly invested $12 billion in the development of the new plant.