Sony Mobile has ceased smartphone production in Brazil according to a report from ZDnet. 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 from Sony, who announced plans to aggressively expand in the Brazilian market only last year. Up until now, Sony Xperia smartphones were manufactured in Brazil by Foxconn and Arima, who both had plants based in São Paulo.
The move by Sony is partly based on the removal of tax exemptions of locally products smartphones costing up to R$1,500 ($530), which means that the company will now only sell imported Xperia devices into Brazil. Sony Brazil’s marketing director Ana Peretti has also said that news will make distribution more flexible.