Apple's iPhone 16 escapes 'death sentence' in Indonesia

In October last year, Indonesia banned the sale of the iPhone 16 because Apple failed to meet the minimum localization requirement of 40%. This made it difficult for the company to access this potential market of 278 million people.

Apple is allowed to sell iPhone 16 in Indonesia from April 11

Apple initially invested $109 million in a developer academy in Indonesia and another $10 million in manufacturing. However, the Indonesian government said the iPhone maker had failed to meet its initial commitment and only spent $95 million. The Southeast Asian country has since banned the sale of the iPhone 16.

Apple then offered to raise its production spending from $10 million to $100 million to lift the ban. However, according to media reports, the Indonesian government wanted Apple to commit to investing $1 billion over one to two decades.

It seems that after many negotiations, Apple and Indonesia have reached a common voice when the company announced that it will sell iPhone 16 here from April 11. Jakarta lifted the ban after the iPhone maker announced an investment plan worth more than 300 million USD.

According to Macrumors, the iPhone 16 models have been certified with 40% domestic content, higher than the minimum (35%). In addition to financial investment, Apple is also said to commit to training local human resources in the R&D field so that they can develop and design software themselves.

The deal also includes plans to build a factory on Batam Island, which will produce AirTags and be operated by partner Luxshare. Another planned factory in Bandung will produce other accessories. Some of the money will go toward Apple academies to equip Indonesian students with tech skills.

Despite the concessions it has made, recent reports suggest that Apple has no plans to manufacture iPhones in Indonesia, meaning it is the only brand there that is allowed to sell imported smartphones without having to manufacture them locally.

Others, in contrast, must comply with the regulations by manufacturing equipment locally or contributing through software development.

Source: https://baoquocte.vn/iphone-16-cua-apple-thoat-an-tu-tai-indonesia-309027.html