Sony has confirmed that it has decided not to manufacture smartphones in Brazil, a move that comes after the country’s government ended tax exemption on locally produced smartphones and computers that cost up to BRL 1,500 ($530).

The confirmation came from the Japanese company’s marketing director Ana Peretti, who said that the move is also aimed at making distribution more flexible. Consequently, Sony has also ended deals with Foxconn and Arima, its manufacturing partners in Brazil.

This comes just a year after the company announced grand plans to expand in the Brazilian smartphone market.


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