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Technology Stocks : Apple Inc.
AAPL 267.72-1.0%9:30 AM EST
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To: Sr K who wrote (126415)2/28/2012 9:17:47 PM
From: JP Sullivan   of 213172
 
the possibility of Apple moving production out of China is real

Brazil is becoming the China of South America, but I doubt if the Foxconn expansion is to replace the capacity in China -- it's hard to imagine that Brazil will be able to match China in terms of scale at this time. More likely it's to cater to the demand in that part of the world and to circumvent the crazy taxes Brazil (and possibly its neighbors) imposes on imported consumer electronics products. That said, it's also a stick that Foxconn can use to improve its bargaining position with the powers that be in China.

-we-
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