Simla Investment：Apple Fails to Meet Indonesian Investment Norms, iPhone 16 Barred

Apple (AAPL, Financial) has been barred from selling and promoting the new iPhone 16 in Indonesia because the Company does not meet the local content rules. The Indonesian Industry Ministry imposed this ban because Apple failed to meet a regulation that expects local sourcing of components for smartphone production to be at least 40%Simla Investment. This regulation aims to promote local industries and reduce imports, particularly of technology, in Indonesia.Jaipur Investment

The iPhone 16, which was released in September, has not been approved for domestic advertising since Apple has not put down the required investment to warrant certification. This decision makes sense in light of Indonesia's efforts to court overseas investors and develop advanced manufacturing capabilities in the country, specializing in technology devices. Even though Indonesians are young and have easy access to modern technology products, there is no proprietary store set up by Apple, with the general rule that they have to buy products from third-party sellers.

The restriction only touches the fret of bringing into the country the new model for commerce sale; it does not bar individual raw iPhone 16 users from importing the device for personal use in the country. It indicated that only approximately 9,000 units of iPhone 16 have been imported into Indonesia, although the market prospect in a nation with nearly 280 million people is huge.

This compliance issue emerged at a time when Apple's CEO, Tim Cook, was seeking huge investments in Southeast Asia to diversify the Company's supply chain, which is mainly dependent on China. The emergence also reveals the nature of competition the smartphone market in Indonesia has at the moment, instrumental by players like Xiaomi, Oppo, Vivo, and Samsung, amongst others.New Delhi Wealth Management

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