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Indonesia bans iPhone 16 after Apple fails local investment commitments

The ban on sales of the iPhone 16 came after Apple apparently failed to meet the government's requirements for 40% local content in tablets and handsets, according to a statement from Indonesia's Ministry of Industry.

Indonesia's industry ministry spokesperson said imported phones of the iPhone16 model – which launched in September – could not be marketed domestically because Apple's local unit had not met a requirement that 40% of phones be made from local parts.

The government says Apple had pledged a US$108 million (about HK$839 million) investment, but has so far invested $94 million (about HK$730 million). 

The ministry said the new Apple phones could be carried into Indonesia as long as they were not being traded commercially.

It estimates just 9,000 units of the new model have entered the country, which has a population of around 280 million. Though those units entered the country legally, selling it in Indonesia would be illegal, Arif added.

The ministry has said Apple's investments in Indonesia are relatively small compared to its sales in the country.

Indonesia's smartphone market shipment share in the second quarter of the year was dominated by China's Xiaomi, Oppo and Vivo, as well as South Korea's Samsung, according to Counterpoint Research.

 

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