According to a report from ZDNet, Sony has ceased smartphone production in Brazil. The company has ended contracts with ODMs Foxconn and Arima “due to lack of fiscal incentives and the current financial crisis.”
This move represents a change in tact, who announced plans to aggressively expand in the Brazilian market only last year. Up until now, Sony Xperia products were manufactured in Brazil by Foxconn and Arima, who had both plants based in São Paulo.
This move is partly based on the removal of tax exemptions, which means that the company will now only sell imported phones into Brazil. Sony Brazil’s marketing director Ana Peretti also said that the news will also make distribution more flexible.