iPhone 16 and Apple Watch Series 10 banned in Indonesia following investment dispute

What conscionable happened? The Indonesian authorities has banned nan waste of nan latest iPhones and Apple Watches aft Apple grounded to meet its finance commitments successful nan country. The banned products see nan caller iPhone 16 models and nan Watch Series 10, which were unveiled astatine Apple's "Glowtime" arena connected September 9.

According to Bloomberg, nan prohibition extends to each units already sold, making it illegal to run immoderate iPhone 16 exemplary successful nan country. Industry Minister Agus Gumiwang Kartasasmita warned citizens against purchasing nan banned devices overseas and urged them to study anyone utilizing a prohibited iPhone aliases Apple Watch.

The prohibition follows allegations from nan Indonesian authorities that Apple has not afloat met its finance commitments successful nan country. To date, Apple has reportedly invested 1.48 trillion rupiah ($94 million) successful Indonesia, falling short of its promised 1.71 trillion rupiah ($108 million) by 230 cardinal rupiah ($14 million).

The curate besides cited Apple's nonaccomplishment to meet constituent localization requirements arsenic an further logic for nan ban. Apple reportedly did not unafraid an hold for nan TKDN certification connected nan iPhone 16, arsenic it lacked nan 40 percent locally manufactured components required for ineligible waste successful Indonesia.

This prohibition is improbable to effect Apple's bottommost statement significantly, arsenic Indonesia is not 1 of its largest markets. Although Apple does not rank among nan apical 5 smartphone vendors successful nan country, it holds a beardown lead complete Samsung successful nan premium handset segment. According to IDC, Oppo is nan starring smartphone vendor successful Indonesia, followed by Samsung, Transsion, Vivo, and Xiaomi.

Earlier this year, Tim Cook visited Jakarta and met pinch President Joko Widodo to talk nan anticipation of establishing a manufacturing installation successful Indonesia. This aligns pinch Apple's broader strategy to diversify its proviso chains distant from China, wherever astir of its smartphones and tablets are presently assembled.

Apple has already moved immoderate accumulation to Vietnam and India amid escalating tensions betwixt Beijing and Washington and is collaborating pinch its manufacturing partners to grow accumulation capabilities successful different low-cost Asian countries.