Apple restricted from selling iPhone 16 series in Indonesia – report

Indonesia has restricted Apple (NASDAQ:AAPL) from selling its new iPhone 16 series in the country, noting that the company has yet to meet local investment requirements, Bloomberg News reported.

The U.S. tech giant’s local unit PT Apple Indonesia has not fulfilled the nation’s 40% domestic content requirements for smartphones and tablets, the report added, citing the Ministry of Industry.

Older products from Apple can still be sold in Indonesia.

Earlier in October, the industry ministry said that Apple has invested 1.5T rupiah ($95M) in Indonesia, below its pledge of 1.7T rupiah. The company has built four developer academies in the country, the report noted.

In April, Apple’s CEO Tim Cook had said the company planned to think about the viability of making some of its devices in Indonesia.

Companies such as Samsung (OTCPK:SSNLF) Electronics and Xiaomi (OTCPK:XIACF) (OTCPK:XIACY) have set up factories in Indonesia to adhere to local content rules introduced in 2017. Other ways to increase local content include sourcing materials or hiring workers in the country, the report added.

About 9,000 iPhone 16 units have so far entered Indonesia, brought by passengers and crew or delivered by post, the industry ministry noted. However, these are only allowed for personal use and cannot be traded.

Even this medium may not be easy for those keen on buying iPhone 16. Since 2020, Indonesia has required all phones bought overseas to be registered with the government and these are subject to a high tax, according to the report.

In the third quarter, Apple reclaimed its place in the top five smartphone companies by market share in China, helped by the launch of the iPhone 16 series, as per data from research firm IDC. However, the Apple saw a 0.3% year-over-year decline in shipments, while its Chinese rival Huawei Technologies witnessed a 42% surge year-over-year.