According to new reports from the Brazilian business magazine Exame, Apple is revisiting plans to expand iPhone assembly in Brazil. The move could position its existing Foxconn facilities in Jundiaí, São Paulo, as an alternative production hub to reduce exposure to U.S. tariffs on China-made devices.
Apple denied any such expansion in early April, stating that its Brazilian factories only served the local market. But Exame now claims Apple is actively upgrading machinery in Jundiaí and preparing the site to support exports to the U.S. Apple hasn’t publicly confirmed the shift. However, it hasn’t refuted the updated report either.
Strategic Response to U.S. Tariffs
The escalating trade war between the U.S. and China has pushed Apple to rethink its manufacturing strategy. China still produces the bulk of Apple’s devices, but rising tariffs make that model costly. Under current U.S. policy, iPhones made in China face a 145% import tax. India and Vietnam also face increased rates, at 26% and 46% respectively, while Brazil’s exports to the U.S. are taxed at just 10%.
Exame reports that Apple began studying production changes in Jundiaí last year. The facility, run by Foxconn, already assembles base models of the iPhone 14, 15, and 16 series. The iPhone 16e has been assembled in Brazil since launch. However, Pro models remain imported.
Apple has not confirmed plans to export from Brazil or increase volume but has acknowledged Brazil’s role in its supply chain. During Apple’s most recent earnings call, CEO Tim Cook and CFO Kevan Parekh made no mention of Brazil while discussing efforts to mitigate tariff-related costs, naming only India and Vietnam as expansion sites.
Brazil Emerges as Plan B
Brazil’s role may grow if India faces prolonged trade pressure from the U.S. According to Counterpoint Research, Apple’s diversification plan now hinges on balancing tariffs with logistics, cost, and quality control. While Brazil’s tax incentives help lower local production costs, they haven’t significantly reduced retail prices for Brazilian consumers.
Now, that infrastructure could serve a different goal: supporting Apple’s U.S. supply chain without incurring China-level tariffs. Foxconn’s Jundiaí site employs between 5,000 and 10,000 workers and already has Anatel approval to manufacture newer iPhone models.
Apple’s decision to scale production in Brazil will depend on whether the factory can meet demand without disrupting global distribution. For now, Apple remains silent, but the shift suggests that Jundiaí is no longer just about serving the local market.