Move may be motivated by tax exemptions

Apple has filed documents with authorities in São Paulo, Brazil that indicate the company will soon be assembling products -- most likely the iPad 2 -- in the city, the largest in Brazil and the sixth-largest city in the world, UOL Technology reports. Newspaper reports indicate that a formal announcement of Apple's arrival will be made on or around April 22nd. Apple would be joining supplier (and competitor) Samsung in doing some manufacture in Brazil if the deal goes through.

The application to the government proposes a new company called Apple Computer Export-Import Ltd. The company already operates in the country as Apple Computer Brazil Ltd. and could amend the application to bring the new division under the same masthead if it wins approval for the new venture.

Apple may be motivated to move the assembly operations to Brazil by tax exemptions offered by the government there, specifically aimed at "tablet PC" type devices. Apple's arrival could influence other tablet makers to follow suit, boosting the Brazilian economy. The approval process for a company coming in to Brazil is normally around 40 days, following legal and environmental checks.

Not yet clear is whether Apple will build its own facility for the assembly work or contract with an existing facility. Shipments of components to be assembled are already on their way to Brazil from China, a São Paulo newspaper has reported. Samsung has already established facilities in the country to help make their Galaxy Tab tablet devices.

The iPad 2 sells in Brazil starting at around US$1,075. [via UOL Technology]

by MacNN Staff