As you recognize by now from studying our protection of the story, Indonesia has banned gross sales of the iPhone 16 line within the nation. The Indonesian authorities desires smartphones offered within the nation to have 40% of the parts used to make every unit sourced domestically. Apple has supplied to speculate $100 million in Indonesia to construct a manufacturing unit to supply smartphone parts if the ban is lifted however it seems that the federal government has a better determine in thoughts.
The newest report states that the Indonesian authorities desires $1 billion from Apple to elevate the iPhone 16 gross sales ban. Whereas it would really feel like a ransom demand, the nation says that with $1 billion Apple may construct an area provide chain that will kill a number of birds with one stone. It might permit Apple to fulfill the 40% native content material requirement by utilizing components made domestically, and this may assist create jobs and lift employment ranges in Indonesia.
Indonesian telephone retailer Erafone inside a shopping center. | Picture credit-Grand Indonesia
Apple would not personal or contract with any manufacturing facility in Indonesia however has began academies that prepare aspiring app builders within the nation. However returning to the thought of an Indonesian provide chain, it’s no secret that Apple has been trying to transfer manufacturing of its units, together with the iPhone, out of China. With President-elect Donald Trump already speaking about imposing a ten% tariff on imports from China, Apple would possibly really feel the stress to expedite the method of shifting extra iPhone manufacturing to different international locations.
Whereas some iPhone 16 sequence models are produced in India, there was hypothesis about Apple turning to a rustic in Southeast Asia equivalent to Vietnam to assemble future iPhone fashions. Indonesia is in the identical area; whereas Apple would possibly really feel optimistic about constructing future iPhones within the nation, the tech large won’t be too eager about making a $1 billion funding in a way that feels extra like blackmail. Think about if different governments threatened to ban the iPhone until Apple met a requirement to speculate $1 billion to construct a provide chain of their international locations.
We must always level out that gross sales of the Pixel 9 sequence have additionally been banned in Indonesia for a similar motive. Indonesian iPhone followers can nonetheless purchase an iPhone 16 sequence mannequin however should buy the gadget from Singapore tacking an import charge onto the worth. Thus, an Indonesian shopper trying to purchase the bottom iPhone 16 handset priced at S$1,299 ($994) in Singapore should pay a further $155 to deliver the gadget to Indonesia.