Apple Partner Starts Assembing Only iPhone 13 In Brazil: Is It The End Of The Line For This Budget Model?

Apple Inc AAPL manufacturing partner Hon Hai Precision Industry Co., Ltd’s HNHPF, better known as Foxconn, is now solely making iPhone 13 models in Brazil.

What Happened: Foxconn’s Brazil unit is churning out 6.1 inch iPhone 13 models, according to a 9to5Mac report.

A surprised customer noticed that his newly purchased iPhone was labeled “Assembled in Brazil", 9to5Mac reported.

Notably, Apple is not manufacturing the iPhone 13 in the South American nation.

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Why It Matters: While the majority of iPhones are assembled in China, some are also made in India and Brazil, noted 9to5 Mac.

The Brazilian telecom regulator ANATEL in January included Foxconn Brazil as a manufacturing facility for iPhone 13. Documents seen by MacMagazine confirm neither iPhone 13 Mini or Pro models will be assembled in Brazil. 

The Pro model has never been assembled in Brazil — most likely due to low demand in emerging countries, according to 9to5Mac.

The decision not to assemble iPhone Mini could be a pointer to the low demand for the device or an upcoming move to discontinue it, according to the report.

The Tim Cook-led company is grappling with a coronavirus outbreak in China, which has led to shutdowns and consequently affected manufacturing. Foxconn was not hit by the outbreak, according to a prior report. 

Apple’s second-quarter results are expected on Thursday after market close. 

Price Action: On Wednesday, Apple shares rose 1.4% in the after-hours session to $158.76 after closing 0.15% lower at $156.57 in the regular session, according to Benzinga Pro data.

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Photo courtesy: Apple