Stefan Mileschin

A plan by Foxconn and Apple to wow the economy of Brazil has turned out to be a bitter disappointment.

Foxconn agreed in April 2011 to make Apple products in Brazil and President Dilma Rousseff promised that up to $12 billion in investments over six years would transform the Brazilian technology sector.

It meant that a new supply chain would be created, generating high-quality jobs and bringing down prices of the coveted gadgets.
However as it turned out none of that happened.

Foxconn has created only a small fraction of the 100,000 jobs that the government projected, and most of the work is in low-skill assembly. In fact Brazil’s technology sector has not been improved and there was not much of a local supply chain.

True the plant is making a lot of iPhones but they carry a a retail price tag of nearly $1,000 for a 32-gigabyte iPhone 5S without a contract. So locals do not even get the benefit of a cheaper phone.

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