Apple has started assembling its latest iPhone 16e model in Brazil, marking a shift in the company’s production strategy as it aims to mitigate the impact of the ongoing trade war between the United States and China.
9to5Mac reports that in an effort to circumvent the hefty tariffs imposed by the US government on Chinese imports, Apple has begun assembling its latest iPhone 16e model in Brazil. This move comes as part of the tech giant’s broader plan to diversify its manufacturing operations and reduce its reliance on China amid the escalating trade war between the two economic superpowers.
Customers who purchased the iPhone 16e in Brazil have noticed the label “Assembled in Brazil – Brazilian Industry” on the packaging, confirming that the devices are being produced locally. Apple’s Brazilian online store also corroborates this information, with the purchase URL for the iPhone 16e revealing a model number ending with “BR/A,” which is assigned to products assembled in Brazil. In contrast, iPhones imported from other countries bear the label “BE/A.”
Anatel, Brazil’s telecom regulator, has provided documentation confirming that the iPhone 16e is being assembled in Brazil, China, and India. The locally assembled iPhone 16e is priced at approximately $890 in Brazil, although it can be found at retailers for as low as $670, likely due to tariff exemptions for domestic production. In comparison, the phone starts at $600 in the United States. These phones are apparently not yet available in America, but the quick change indicates that Apple is not wedded to China as its main base of operations, despite signing a massive deal with the communist country.
This move to increase production in Brazil is a departure from Apple’s previous strategy, which typically involved waiting several months before commencing the assembly of its latest iPhone models in the country. The shift in approach underscores the urgency with which Apple is seeking to mitigate the impact of the U.S.-China trade dispute on its operations.
In contrast, products from Brazil have only been subject to a 10 percent tariff, making it an attractive alternative for Apple to import iPhones from Brazil rather than China. The company flew multiple planes carrying hundreds of tons of iPhones and other products from India and China before the tariffs took effect, in an effort to minimize the immediate impact on its supply chain.
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Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
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