$12 Billion Deal to Produce iPads in Brazil May Be In Trouble

Posted September 29, 2011 at 9:14pm by iClarified | Please help us and submit a translation by clicking here | 6333 views

A $12 billion plan for Foxconn to produce iPads in Brazil is 'in doubt' due to 'crazy' demands by Foxconn and deep structural problems, reports Reuters.

Earlier this month Brazil's Minister of Science and Technology, Aloizio Mercadante, said that Foxconn's new factory in Brazil is ready to produce iPads that will reach the market by December. However, government sources told Reuters that the plan is 'in doubt' due to 'crazy' tax break demands and a lack of skilled labor.

"The talks have been very difficult, and the project for a Brazilian iPad is in doubt," one official said. "(Foxconn) is making crazy demands" for tax breaks and other special treatment, the official added.

Reuters suggests that perhaps Foxconn will just assemble foreign-made parts to the iPad in Brazil rather than producing components locally.

"We're dealing with a lot of issues, like the (Taiwanese) trying to figure out how to do business in Brazil ... and Brazil figuring out how to produce these complicated products," said a second government official.

"Maybe we will end up starting with something smaller."

Read More


Share
Add Comment
Follow iClarified
Apple to Boost Buyback Plan by $30 Million?
Bernstein Research analyst Toni Sacconaghi sa...
Drop, Slide, Dunk Test: Samsung Galaxy S5 vs iPhone 5s vs HTC One M8 vs Nexus 5 [Video]
Anki Announces Brand New Cars & Tracks, New Race Mode
Anki has announced two new tracks, two new ca...
Corel Releases New Pinnacle Studio Video Editing App for iPhone
Corel has released a new Pinnacle Studio vide...
Corel Releases Rebuilt Pinnacle Studio Moviemaking App for iPad
Corel has released a major update to its Pinn...