Indonesia bans sales of iPhone 16 & Apple Watch Series 10

The iPhone 16 series has been available around the world for a few weeks now. However, it appears that Apple has encountered a significant obstacle in a Southeast Asian market. Indonesia has banned the sales of the iPhone 16 series due to Apple’s failure to comply with local investment requirements.

For certain product categories, the Indonesian government requires manufacturers to include at least 40% of “domestic content.” For example, companies could set up device factories in the Asian country to comply with the requirement. Apple, on the other hand, approaches the issue differently. The Cupertino giant invests cash in local sourcing, infrastructure, and others.

Indonesia has banned iPhone 16 sales over Apple’s failure to comply with local investment requirement

The local government’s requirement for Apple was for an investment to reach at least 1.71 trillion rupiah ($109 million) in total. However, Apple has only invested 1.48 trillion rupiah ($94 million), leaving a deficit of about $15 million compared to the demanded amount. Apple’s investments in Indonesia to try to meet the requirements go to things like four software developer academies.

That said, after having failed to meet the required investment, the iPhone 16 sales have been banned in Indonesia. The local government has denied Apple the necessary license to sell such devices in the country. The ban also affects the latest Apple Watch Series 10 and other products announced by the company a few weeks ago.

Other brands, such as Samsung and Xiaomi, have played it safe by establishing device factories in Indonesia. Apple has not established factories in Indonesia, possibly due to the lack of popularity of iPhones in the country. In fact, Bloomberg reports that iPhones are not among the top six smartphone brands in Indonesia. Therefore, establishing factories would not yield significant profits for the company. However, some reports claim that Apple was considering doing so.

iPhones are not that popular in Indonesia

Indonesian representatives claim that there are around 9,000 units of the iPhone 16 series in the country. These devices may have entered the country through imports, international shipments, or carry-on luggage on flights. The government will not ban the use of such devices but will ban their resale. It remains to be seen whether Apple reaches an agreement with the Indonesian government to resolve the incident in the near future.

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