Apple in South America

General Overview

South America was hit by recession in 2008:

Exports fell by 10 to 30% Investments flows reduced Food prices increased by 15% GDP decreased

=> Expected to recover before most developed countries and have a 4.1% growth

Facts about BrazilD Population: 198,739,269

E GDP per capita: $10,200 (2009 est.) Unemployment rate: 7.4% (2009 est.) Inflation rate: 4.2% (2009 est.) Current account balance: $-11.28 billion (2009 est.) Main trade partners: US, China, Argentina,

Netherlands, Germany FDI: $318.5 billion (31 December 2009 est.) 10th largest economy in the world

S Availability of high level jobs Social classes (gap)

T Good infrastructure (along the coastal areas) Mobile phone usage is less expensive than

landlines

E Amazon Pollution

P Corruption Money laundering

Apple in Brazil Company’s Implementation:

Apple's first self-run stores in South America has been put in place by the end of March 2008.

Two stores will open in the key city of Sao Paulo.

Apple has recently ramped up its efforts in the country, establishing a plan in late November to implement its store-within-a-store concept across 16 third-party stores by the end of 2008.

Trends and Issues

Mobile phone use:

More and more brazilians are using mobile phones

150.641 million users

Fast growing market

Computer and internet:

Biggest market for network provider in Latin America

Technological progress (broadband, carbon fibre, internet on mobile phones, mobile shopping...)

Trend in communication:

One of the most important trends in the next years will be the fact that mobile phones are becoming instruments used for searching, and that this will become one of the top 5 most used features of a telephone.

Apple has already applied this technology to the iPad and iPhone for example, and that it will develop this application further.

Presidential Elections:

Expected in October 2010

Risk of change in politics, national expenditures, taxes…

Olympic Games

Brazil will host the 2016 Olympic Games.

Will affect the country’s economy, infrastructure, employment and boost local growth.

Issues

Corruption

Government spending

Price of Apple in Brazil

Favelas

Questions

How much do you think corruption affects Business in Brazil?

What do you think the government should do to fight poverty?

How would the change in political factors affect business?

Do you think the olympics will make Brazil a rich country?