Tag: Indonesia

Apple faced a ban on the sales of its iPhone 16 series in Indonesia back in October 2024. The company had apparently failed to keep its promise for planned investment in the region, prompting the end of iPhone 16 sales in the area. But now, Apple is willing to invest even more in Indonesia to reverse this decision. So let’s check it out.

The Reason Behind the Ban

The Cupertino based giant faced the sales restriction after failing to meet the $109 million investment that it had promised to provide in local infrastructure. Reports had indicated that Apple fell short of this amount by around $14 million. This paired with no new agreements and previous issues with the government’s mandate to source 40% local components led to the iPhone 16 sales ban.

What’s Next for Apple?

As of right now, Apple has already began work on an innovation development scheme by creating Apple Academies in the country. Further more, a new report claims (Via PhoneArena) that Apple has increased its offer to invest $100 million in Indonesia over the next two years. This is a sizeable investment, which is around 10 times higher than its previous proposal of $10 million for a factory in Bandung that would make accessories and components.

Government Response Pending

The Indonesian government has yet to respond to Apple’s new proposal officially. However, considering how the Ministry of Industry is looking for Apple to expand research and development for iPhones selling in the country, this new investment promise might end the ban of iPhone 16 sales. To recall, Indonesia had also blocked the sale of Google’s Pixel 9 series of smartphones as well for a similar reason. The company had failed to meet similar investments, but it remains to be seen if Google meets these requirements.

Infused with smart tech, the iPhone 16 series made its debut last month, but in some regions, buyers will have to wait until next year to access all the features. Unfortunately, Apple enthusiasts in Indonesia are unable to purchase these new devices locally due to a sales ban linked to noncompliance with specific regulations. On a positive note, they can still obtain any iPhone 16 models from international sources, either online or in physical stores, and pay any applicable import duties.

Statement from Officials

In a statement released on Friday, Febri Hendri Antoni Arief, a spokesman for the ministry, mentioned:

“Imported iPhone 16 devices aren’t allowed to be sold here because Apple Indonesia hasn’t met its investment obligations to obtain a local content certification.”

Given this situation, it’s unlikely that Apple will make the necessary adjustments. As reported by Statista, Apple holds over 12% market share in Indonesia, with approximately nine million units sold locally in the fourth quarter of last year.

Features and Sales Performance

With its specially designed A18 chip, improved camera capabilities, and subtle design tweaks, the iPhone 16 series garnered a mixed reception from both consumers and critics. This lukewarm response has led to diminished demand, which is concerning for Apple and its investors. Morgan Stanley reported that the standard and Plus versions sold about 37 million units during their opening weekend. In terms of lead times—the duration between placing an order and receiving it—the iPhone 16 lineup is performing the worst in the last five years, showing similar results to the iPhone 12 series.