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Indonesia bans iPhone 16 over Apple’s broken commitments
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Indonesia bans iPhone 16 over Apple’s broken commitments

  • Indonesia has banned the sale of the iPhone 16.
  • The Ministry of Industry has not issued the IMEI certificates required for the sale of phones.
  • This was done because Apple failed to meet its investment commitments in the country.

Indonesia bans iPhone 16 over Apple's broken commitments

Indonesia has bans the sale of iPhone 16 in the country, making it illegal to use the device within its borders. The ban also extends to other Apple products launched in recent Apple Eventlike the Apple Watch Series 10.

Now this not only covers the sale of new units, but also includes already sold iPhone 16 models. This means that if you are in Indonesia and using an iPhone 16, you are engaging in illegal activity. This is particularly problematic for tourists who own the device.

This was done because Apple failed to meet its investment commitment in the country. The company has committed to investing $109 million in Indonesia. However, it has only invested $95 million so far, which represents a shortfall of $14 million.

Indonesia has a 40% local content requirement (LCR) for Apple devices. This means that 40% of all input parts used in the device must be manufactured locally in Indonesia. This policy helps the government boost employment and the manufacturing sector in the country.

“If there is an iPhone 16 that can work in Indonesia, that means I can say the device is illegal. Report it to us. – Gumiwang Kartasasmita, Ministry of Industry

Apple was planning to establish local development and research units in Indonesia, which has not yet happened.

As a result, the country The Ministry of Industry did not issue IMEI (International Mobile Equipment Identity) for iPhone 16, which are required to sell the device in the country.

Apple’s Indonesian market

Apple is the third largest smartphone seller in Indonesia with a market share of 12.33%. And this ban does not concern the entire iPhone range, but only the latest 16 models. So, it would not affect the company’s revenue and market share in the country.

According to a Apple reportiPhones are a a large part of the used smartphone industry in Indonesia. Since buying a new iPhone is expensive for most of the citizens of the country, they prefer to buy used iPhones due to their brand appeal and user-friendly experience.

This raises the question of whether banning the iPhone 16 would be enough to force Apple to invest the additional $14 million. However, Apple is yet to respond to the incident.