Why Apple Can't Sell iPhone 16 in World's 4th Most Populous Country ?

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A few days ago, Indonesia, the 4th most populous country in the world, announced a ban on the sale of the iPhone 16. As explained in an article in the Financial Times, the Cupertino company failed to obtain the government’s “local content” certification, which is essential for its latest iPhones to be marketed in the country. But what is it all about?? In essence, to encourage investment in Indonesia, the government created this rule that requires that at least 40% of a product’s value be of local origin.

However, as explained in the Financial Times, it is possible to obtain certification by developing apps locally, or by developing innovative products there. And to comply with this rule, Apple has reportedly chosen to create developer academies. But the problem is that the firm’s investments would not be enough for it to obtain the “local content” certification. More precisely, Apple would have invested only 1.5 trillion Indonesian rupiah (about 88 million euros), out of the 1.7 trillion promised.

What impact on Apple’s sales ?

As mentioned above, Indonesia is one of the most populous countries on the planet. And there are reportedly a total of 354 million smartphones in use in the country, out of a population of 280 million people. Furthermore, in recent years, iPhone sales in the country have reportedly been on the rise. However, despite all this, the banning of the iPhone 16 in Indonesia should not have a significant impact on the company’s financial results, according to the Financial Times.

Indeed, despite its population, Indonesia is not a particularly important market for Apple, since it is still largely dominated by Android devices.

• The Indonesian government recently announced a ban on the sale of the iPhone 16
• Indeed, the country has a “local content” rule that Apple has not respected despite its investments in the country
• Indonesia requires that a portion of the value of products sold in the country be local
• The ban on the sale of the iPhone in Indonesia should not have a serious effect on Apple’s financial results, however, given that it is a market that is still largely dominated by Android

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