Sony, a Japan-based company, has announced that it has decided to cease production of its smartphones in Brazil. This decision has been made by Sony, as Brazil has ended tax benefits for locally produced smartphones and computers that cost up to R$1,500 ($530), that's the main reason at least. This comes as a big move from Sony's investment back in 2015, in which the company injected R$250 million (which was equivalent to $83 million at the time of announcement) into the Brazilian smartphone market to expand its presence in the country. Sony was confident that its sales would be driven up by consumers' demand for smartphones even with the challenging market and economic crisis that are plaguing Brazil.
Before this decision was made, Sony's smartphones produced in Brazil were manufactured by companies such as Foxconn and Arima. Both companies had manufacturing plants producing smartphones for Sony based in the countryside of Sao Paulo. However, those of you who live in Brazil and like Sony's smartphones do not have to worry, as Sony will now be importing their devices to Brazil. Sony will bring in their smartphones from China and Thailand, which is where Sony assembles their devices. The Japanese multinational company will also import their latest smartphones to Brazil, the Sony Xperia X and Sony Xperia XA, which were launched in Brazil earlier this month. This move will enable Sony to distribute their products with more flexibility in Brazil according to Ana Peretti, who is Sony's marketing director in Brazil.
Another smartphone manufacturer to take the same path as Sony, is a China-based electronics company, Xiaomi. The company's CEO, Hugo Barra, recalled it's handset team back to China from Brazil in early June. Although extremely popular in its home country of China, Xiaomi has been struggling in Brazil a year after they launched the Xiaomi Redmi 2 in the country. This was most likely due to the brand having trouble in promoting their devices in the country, and also due to the very complicated tax system implemented by the Brazilian government. Xiaomi currently has no plans to bring any of its latest devices, such as the Mi Max and Mi 5, to Brazil. However, Hugo Barra has reassured everyone that the company is not leaving the Brazilian market.