Indonesia Demands $1 Billion Investment from Apple to Lift iPhone 16 Ban
Indonesia has banned the sale of the iPhone 16 due to Apple's insufficient investment in the local economy. Initially, Apple invested $109 million in a developer academy and $10 million in manufacturing. However, the Indonesian government claims Apple fell short on its initial investment, spending only $95 million, leading to the ban.
Apple offered to increase its manufacturing spending tenfold, from $10 million to $100 million. This could involve establishing iPhone and iPad assembly plants through Foxconn or having other supply chain partners manufacture components in Indonesia. However, the Indonesian government now expects a $1 billion investment commitment from Apple within a week.
Indonesia, with a population of 280 million and growing prosperity, represents a significant growth market for Apple. The government emphasizes the importance of investment in the local economy, job creation, and the movement of the global value chain to Indonesia. This demand for a substantial investment reflects Indonesia's strong position in negotiations with Apple. For related news on Android updates, see Xiaomi's announcement of monthly Android updates.
This situation highlights the increasing demands placed on multinational tech companies to contribute significantly to the economies of countries where they operate. You can also read about Samsung's November 2024 security update for their Galaxy devices. For more on Apple, check out potential new features coming to Apple devices.