Indonesia, Apple reach agreement to end iPhone 16 sales ban

Apple has reached an agreement with Indonesia to resume sales of its iPhone 16, five months after a ban was imposed due to non-compliance with local regulations requiring 40% locally produced components in smartphones. The resolution follows Apple's commitment to invest $1 billion in a new factory in Indonesia, which will produce components for its devices. Previously, Indonesia had rejected a $100 million investment proposal from Apple, citing insufficient funding. The company is currently working on obtaining a local content certificate to market its products in the country.

Apple's move to invest in Indonesia aligns with its broader strategy to diversify supply chains and reduce dependence on China. The iPhone 16 is also manufactured in Brazil, India, and China, while AirPods are assembled in Vietnam. In a related development, Indonesia has banned the sale of Google Pixel phones for similar reasons regarding local component use. The top smartphone brands in Indonesia as of the third quarter of 2024 are Oppo, Xiaomi, Transsion, Samsung, and Vivo.

Key takeaways

Apple will resume iPhone 16 sales in Indonesia after agreeing to meet local content regulations by investing $1 billion in a factory.
Indonesia previously blocked iPhone 16 sales due to non-compliance with the 40% local component requirement.
Apple plans to invest $500 billion in the U.S. over the next four years, focusing on AI and chip manufacturing.
Indonesia has also banned Google Pixel phones for not meeting local component requirements.

Indonesia, Apple reach agreement to end iPhone 16 sales ban | TechCrunch

Key takeaways

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