In the midst of the US-China trade war, Apple has begun assembling the iPhone 16e in Brazil, a move aimed at mitigating the impact of tariffs imposed on Chinese imports.
Apple has been assembling the iPhone 16e in Brazil since its release, a departure from its previous practice of starting local production months later. This change is significant as it indicates Apple’s efforts to diversify its manufacturing base in response to trade tensions.
Brazilian customers have noticed the “Assembled in Brazil – Brazilian Industry” label on their iPhone 16e packaging, confirming local assembly. Apple’s Brazilian online store also indicates that the iPhone 16e is assembled in Brazil, with model numbers ending in “BR/A,” distinguishing them from imported models labeled “BE/A.”
The Brazilian telecom regulator, Anatel, has confirmed that the iPhone 16e is assembled not only in Brazil but also in China and India. The local assembly in Brazil has pricing implications, with the iPhone 16e costing around $890 in Brazil. However, due to tariff exemptions for locally produced goods, retailers are selling it for approximately $670, compared to the starting price of $600 in the US.
According to recent reports, Apple is planning to expand its facilities in Brazil in partnership with Foxconn to further avoid US import tariffs on iPhones. The potential for tariffs on Chinese goods to rise to as high as 245% has prompted Apple to explore alternative manufacturing locations. In contrast, products from Brazil are subject to a lower tariff of 10%, making it an attractive option for Apple to import iPhones into the US.
This move is part of Apple’s strategy to adapt to the changing trade landscape. The company has previously taken steps to avoid tariffs by transporting iPhones and other products from India and China before the tariffs took effect.
