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Apple is under pressure. Political tensions between the US and China are increasingly impacting the global supply chain. In this context, one country has suddenly resurfaced in the spotlight: Brazil. Although Apple initially denied any expansion of production there, there are now mounting signs of a change of course.
Apple is apparently planning to expand iPhone assembly in Brazil after all. The company originally stated that it had no plans to expand production at Foxconn's factories in Jundiaí, São Paulo. However, new information from the Brazilian business magazine Exame paints a different picture. Apple could use Brazilian factories specifically for the US market in the future – in response to the tariffs imposed under President Trump.
Apple and Foxconn: What's happening in Brazil
Apple has been manufacturing iPhones in Brazil for over ten years. The factories in Jundiaí currently produce the iPhone 16, the iPhone 16 Plus, and the iPhone 16e. Officially, according to Apple, production there only serves to supply the local market. However, at the beginning of April, Exame reported for the first time that Apple wanted to expand production capacity in Brazil. The background: a strategy to circumvent US tariffs. At the time, Apple denied this. The company stated that it had no plans to increase local production. The factories in Jundiaí were intended exclusively for Brazil. However, on April 25, Exame followed up. According to the report, Apple has already begun examining options for modernizing the machinery and industrial processes at Foxconn's Brazilian factories in 2024. The goal is to also use these factories to supply the US in the future. According to Exame, this represents a strategic shift that has not yet been officially confirmed.
No official confirmation, but clear indications
In the recent quarterly conference call for the second quarter of 2025, neither CEO Tim Cook nor CFO Kevan Parekh mentioned Brazil. Instead, they emphasized that India and Vietnam should increase their share of US production. China remains the main production base for the rest of the world. However, according to Exame, the fact that Brazil was not mentioned in this context does not mean that nothing is happening there. Rather, the expansion is apparently proceeding quietly in the background, possibly to avoid exacerbating political tensions or prematurely raising expectations.
What does this mean for Apple users in the US?
If Apple does indeed produce more iPhones in Brazil, and these devices are destined for the US market, this could help offset the cost increases caused by tariffs. For US buyers, this raises the question: Will Apple be able to maintain current iPhone prices? Exame doesn't provide a clear answer, but expanding production in alternative locations at least suggests an attempt to avoid price increases. Whether this succeeds depends on many factors—including the speed with which Apple can modernize its Brazilian factories.
Brazil moves to the center of Apple's production strategy
Apple appears to be gradually adjusting its production strategy. While outward communication remains vague, behind the scenes, according to Exame, concrete preparations are underway to expand iPhone assembly in Brazil. The goal is apparently to minimize the impact of US tariffs. Whether this will succeed in the long term and what role Brazil will actually play remains to be seen. The only thing that is clear is that the development is well underway – and it could have a direct impact on iPhone pricing in the US. (Image: Shutterstock / BadPixma)
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