Apple intensified its push for global smartphone market dominance, as the ban on iPhone 16 sales in Indonesia is expected to be lifted soon.
A Bloomberg report indicates that Apple has secured approval from the Indonesian government for a $1 billion investment plan.
The investment will establish an AirTag production facility on Batam Island in Indonesia’s Riau Islands. A portion of the funds will also support Southeast Asian students by creating an Apple Academy.
The Batam Island factory will handle 20% of global AirTag production and initially employ around 1,000 workers.
Indonesia requires smartphones, laptops, and tablets sold in the country to include more than 40% locally sourced components to boost the manufacturing sector.
Companies that fail to meet this requirement must either use Indonesian software or make equivalent investments. Non-compliance can result in sales bans.
Due to these rules, Apple has been banned from selling the iPhone 16 in Indonesia. The device is unavailable on Apple’s Indonesian website and in local stores, and overseas purchases are blocked.
Analysts suggest that approving the $1 billion investment could pave the way for lifting the iPhone 16 sales ban. Indonesia is a critical market for Apple, ranking fifth in global smartphone sales share. With a population of 278 million, the country— the world’s fourth most populous—offers significant growth potential.
However, the timeline for lifting the ban remains unclear. Bloomberg notes that the Indonesian government has not provided a schedule for allowing iPhone 16 sales, warning that plans could change given Indonesia’s history of policy reversals.
If the ban is lifted, Apple could surpass Samsung Electronics as the global leader in smartphone shipments. Canalys said both companies held an 18% share of global smartphone shipments in Q3 2023.
Apple’s share rose by one percentage point year-over-year, while Samsung’s declined by 3 points.
Despite the uncertain initial reception of the iPhone 16, Canalys predicts that Apple will continue to grow as it expands into new markets and supports additional languages.
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