The Indonesian government has banned the sale of Apple’s AAPL iPhone 16, claiming that the company has not fulfilled its investment commitments in the country.
What happened: The Indonesian government has banned Apple from selling the iPhone 16 in the country due to the company’s inability to meet investment obligations, the South China Morning Post reported on Wednesday.
Industry Minister Agus Gumiwan Cartasasmita said Apple has not fulfilled its investment commitments and therefore needs to renew its local content license.
“Apple’s iPhone 16 is not yet available for sale in Indonesia, as the TKDN certification extension is still pending and we are waiting for further investment from Apple to materialize,” Agus said.
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Apple has invested 1.48 trillion rupiah ($95.08 million) in Indonesia, falling short of the total commitment of 1.71 trillion rupiah ($109.59 million). The company has yet to achieve its promised investments through its four research and development facilities in Indonesia. The difference between the investment amount and the original commitment amount is 230 billion rupiah ($14.75 million).
Why it matters: This move comes as a surprise given Apple’s recent success in the smartphone market. In the third quarter of 2024, Apple’s iPhone 16 achieved record sales, giving the company an 18% market share, second only to Samsung.
In early April, Apple expressed interest in expanding its manufacturing base in Indonesia after discussions with CEO Tim Cook and the Indonesian president.
Despite the ban, Apple’s iPhone 16 series continues to drive growth in the smartphone market, according to JPMorgan analyst Samik Chatterjee.
Price Action: Apple stock closed 1.10% higher at $233.85 on Tuesday. In after-hours trading, the stock rose 0.11%. Apple stock has increased 25.97% since the beginning of the year, according to data from Benzinga Pro.
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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
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