Apple blocked from selling iPhone 16 models in Indonesia due to failure to meet investment requirements in the country (via bloomberg).
According to a statement from Indonesia’s Ministry of Industry dated October 25, the mobile phone cannot be sold in the country because local subsidiary PT Apple Indonesia does not meet the domestic content requirement of 40% for smartphones.
Apple has invested about 1.5 trillion rupiah ($95 million) in Indonesia, but has promised an investment target of 1.7 trillion rupiah. According to the report, Apple is focusing on establishing a developer academy in the region rather than establishing a local manufacturing facility.
The setback comes at a time when Apple was enjoying strong iPhone sales around the world, especially in China. Indonesia in particular is a key market for Apple, with more than 350 million mobile phones in use among its 270 million residents in the country’s $1 trillion economy.
According to ministry officials, about 9,000 iPhone 16s have entered Indonesia through personal imports by passengers and crew, or through postal delivery, but these devices are strictly for personal use and cannot be sold commercially. He says he can’t.
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