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China

Submission + - Foxconn's Brazil Plan Stalled (reuters.com) 1

hackingbear writes: A much-hyped $12 billion plan for Taiwanese manufacturer Foxconn to produce iPads in Brazil, announced in April by President Dilma Rousseff during an official visit to China, is "in doubt" due to stagnant negotiations over tax breaks and Brazil's own deep structural problems such as a lack of skilled labor and bad infrastructure, government sources tell Reuters. "(Foxconn) is making crazy demands" for tax breaks and other special treatment, the official added. Local media have reported that Foxconn is also seeking priority treatment at Brazilian customs, which is notoriously slow even by the standards of emerging markets. Because of tariffs and taxes, an iPad 2 with 16 gigabytes of memory currently retails for about $900 [in Brazil], nearly twice the $500 list price in the United States.
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Foxconn's Brazil Plan Stalled

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  • Because of tariffs and taxes, an iPad 2 with 16 gigabytes of memory currently retails for about $900 [in Brazil], nearly twice the $500 list price in the United States

    Unlikely. They might be part of the story, but probably not anywhere to such a degree. High tech toys, and overall any sort of luxurious item, just have greater mark-up the more impoverished a given place is; more so if they are of the premium type. Local Apple branches seem quite committed to that rule (a short hop across the Oder river, in western direction, and I see significantly lower prices; with tariffs and taxes being there similar, quite possibly higher)

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