$1bn includes building a factory so most of that investment will go on this.
But with iPhone sales stalling and the smartphone market in general plateauing they need to find untapped markets quick.
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iPhone 16 Still Banned in Indonesia Despite $1B Apple Investment Deal
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$1bn includes building a factory so most of that investment will go on this.
But with iPhone sales stalling and the smartphone market in general plateauing they need to find untapped markets quick.
it’s a complicated situation. How the domestic production requirements can be fulfilled is not clearly specified in the law (are laws ever fully explicit in every detail?). The law appears to suggest goods and services, including Apple's money to build up and support app developers, can fulfill requirements.
Also, if you bring up possible bribery, people can interpret Indonesian’s law as a form of requiring bribes. How about we just say that Apple is trying to figure out how to follow the law in a way that doesn't cost more money than Apple will make in Indonesia (most smartphones purchased there are low-end, inexpensive models), won't result in products that do not meet Apple's quality requirements, have a secure supply chain, etc.
There are various Chinese and some others that have been and are ramping up production and services in the country, but they are also companies that sell inexpensive phone models (that lose the companies money to make or only allow a slim profit).
The history of this law goes back about 10 years. The U.S. government, other governments, and companies are concerned about it for various reasons, including that it might break international trade agreements Indonesia is part of (i.e., the World Trade Organization): https://www.reuters.com/article/tec...de-in-indonesia-smartphone-law-idUSKBN0LS0CU/
I don't understand this protectionistic law and I'd venture no one commenting here really does. But my take is that Apple appears to be trying to figure out how to follow the law and the Indonesian government's requirements that are a moving target. Then there is also the issue of precedent. If Indonesia can do this, what stops every other country from having a law like this? I dislike bringing up a slippery slope, but given the surge in populism and protectionism around the world, including in the U.S., E.U., South America, India, and other locations, international business is becoming increasingly complex. That's a change from the 1990s through 2010s when globalization generally ruled.
By the way, the requirement is now up to 40%, not 35%: https://www.reuters.com/technology/...investment-proposal-official-says-2025-01-07/
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Do an internet search for "Indonesia IMEI whitelist", if you try to smuggle in an iPhone, you'll have no cellular service. And air tags are useless without a iPhone.
Apple intelligence has trouble with British English, I think it is going to have even more trouble with Javanese.
Tim wasted his donation to trump.
The Uk and US, and even India and Indonesia are not as bad as China and Russia.
Sure they're massively flawed. But I'd rather support the lesser evils.
UK and US invaded Iraq and Afghanistan based on fabricated information. Killed thousands and then fled the country leaving the Taliban to run amok again. Basically throwing dirt in the faces of all the soldiers who died or got maimed fighting for nothing.
George Bush and Tony Blair are war criminals who should be in jail right now.
If you look back the slave trade itself went on for 400 years just as bad as anything China or Russia are doing now.
I don’t agree with what China and Russia are doing but let’s not pretend any country or government is better than the next. They are all corrupt and get their hands dirty.
Side with Apple here.
I get what poor Indonesia are trying to do but if every country had this policy the supply chain would be a total mess.
One of these days Apple is just going to say 'sod it' and set a precedent by withdrawing.
Side note: I don't understand why everyone is going all political and talking about things like the Iraq invasion. Leave it out, this isn't X.
I get what poor Indonesia are trying to do but if every country had this policy the supply chain would be a total mess.
One of these days Apple is just going to say 'sod it' and set a precedent by withdrawing.
Side note: I don't understand why everyone is going all political and talking about things like the Iraq invasion. Leave it out, this isn't X.
Does Indonesia has this requirement for all of the companies that sell Android phones in their country??
Words that do not belong together from my experience:
Honest and politician
Military and intelligence
The Indonesian president and or government need new luxury yachts so they can join in the fun a Morocco?
Honest and politician
Military and intelligence
The Indonesian president and or government need new luxury yachts so they can join in the fun a Morocco?
Looks like Timothy donated his million to the wrong national leader.
Yes., these rules are not specific to Apple despite MacRumors reporting it that way. Indonesia requires that for smartphones sold in the country, 40% of their components must be domestically sourced..that includes all Android phones. It was 30% prior, but not enforced.
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What's corrupt about this? They're not looking for personal gain, but gain for their country.
Sure, you can call it extortion, or isolationist. Maybe it violates trade agreements. But if you call that corrupt, that word has lost all meaning.
Indonesia should learn to do their own innovation if they want to treat foreign investment so shabbily. Apple should just move on and look to do business in countries that value freedom and private industry. Otherwise, 100% tariffs on Indonesian goods would make sense.
Significant. The population is nearly the size of USA, and the GDP is the world's 16th largest.
Yes, that's exactly what the criminals and liars want you to believe. "Everybody is guilty and lying anyway, so it's okay."
Every country has terrible things in their history, and no country is perfect, but that doesn't mean some governments are doing worse things than others.
Sure Apple can do that and completely cede the market, but Chinese phone companies did and will continue to happily into the role, while complying with Indonesia's rules. Oppo and Honor are now the top selling phones, have just increased their manufacturing in Indonesia and have pledged to increase it further. It's in Apple and it's shareholder's business interest to follow the rules.
Indonesia's main export to the US is palm oil, so the only thing tariffs will do is make our food prices jump. In short, they won't do a damn thing except make Indonesia buckle down. My family avoids palm oil like the plague, for environmental reasons, but most don't.
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I can now understand why Cook was bit cushy with orange haired guy recently: hit Indonesia with extreme tariffs. All I can say is it won’t work and will only force Indonesia to rely more on China and potentially Russia instead of western countries.
That seems impossibly low. Indonesia has 275 million people. Apple wouldn't have gone from a 10 million investment to 1 billion to get around the ban if this was about 2 million dollars.
If a country requires that iPhones have 35% domestic content, doesn't that limit it to two countries that can source the iPhone content ?
The only solutions that I can see are making Indonesia one of the two countries (along with China) or stopping sales in Indonesia.
The only solutions that I can see are making Indonesia one of the two countries (along with China) or stopping sales in Indonesia.
There are failures in democracy. But please do not compare that to China. In China, political party members can walk into your house, deem it too big for your requirement and claim the house for their use. They can kill your baby to control population.
Please do not compare other working democracies to China. If you can vote and elect out your current government, then that's a big achievement in human history.