Apple Is Assembling iPhone 16e in Brazil to Cut Back on China Production: Report

Highlights

• Apple has begun assembling the iPhone 16e in Brazil from the start to diversify production away from China.
• Local production helps Apple mitigate US-China tariff impacts with Brazilian-made iPhones priced lower due to likely tariff exemptions.
• Apple collaborates with Foxconn to expand manufacturing in Brazil and leverage lower tariffs (10%) on imports to the US.

Caption – The recently launched iPhone 16e is being assembled in Brazil. (Image credit – Apple)

It is no news that Apple has been focusing on diversifying its production bases for a while now. And now new report reveals that Apple is already building the iPhone 16e in Brazil as part of its efforts to move some of its production out of China. The shift comes amid the ongoing US-China trade tensions with high import tariffs making things trickier for companies like Apple. Here’s what we know.

iPhone 16e Production Begins in Brazil

According to an international publication named MacMagazine, Apple has been assembling the iPhone 16e in Brazil since the very beginning. While Apple has produced iPhones in Brazil before, it usually took a few months after the launch of a new model to start local assembly but they didn’t wait this time.

Customers in Brazil who bought the iPhone 16e noticed a label on the box that reads, “Assembled in Brazil – Brazilian Industry.”

Caption – iPhone 16e Made in Brazil box and confirmation certificate. (Image credit – MacMagazine)

Apple also confirms this on its official Brazilian store, where the purchase URL for the iPhone 16e includes a model number ending in “BR/A”, the code for products made in Brazil. Imported models carry the “BE/A” label instead.

Anatel, Brazil’s telecom regulator, also confirms that the iPhone 16e is being assembled in Brazil, as well as in China and India.

Pricing and Tariffs

In Brazil, the iPhone 16e is priced at around $890. But thanks to local production and likely tariff exemptions, it’s already selling for as low as $670 at some retailers. For comparison, the same model starts at $600 in the US.

Apple’s decision to ramp up production in Brazil is closely tied to growing tariff concerns. The company is reportedly working with Foxconn to expand its manufacturing facilities in Brazil, hoping to avoid steep US import taxes on devices made in China.

Even though the US government recently made some exceptions to Trump-era tariffs, a new White House document suggests that Chinese products could still face tariffs as high as 245%. China has responded with its own tariff increases on American goods.

Meanwhile, goods imported from Brazil are only hit with a 10% tariff, which is much less than what products from China might face. That’s why Apple sees Brazil as a smart alternative for iPhone production. Reports also say Apple flew in multiple shipments of iPhones and other gear from India and China before the new tariffs kicked in.

FAQs

Q1. Why is Apple assembling the iPhone 16e in Brazil?

Answer. Apple is assembling the iPhone 16e in Brazil to reduce reliance on China for production, driven by US-China trade tensions and high import tariffs.

Q2. What benefits does local production in Brazil offer Apple?

Answer. Local production in Brazil allows Apple to avoid steep tariffs, enabling lower pricing for Brazilian-made iPhones and minimizing costs for exports to the US.

Q3. Is the iPhone 16e being assembled exclusively in Brazil?

Answer. No, the iPhone 16e is also being assembled in China and India, as confirmed by Brazil’s telecom regulator, Anatel.

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