Indonesia, Apple reach agreement to end iPhone 16 sales ban

Apple resumes iPhone 16 sales in Indonesia after a local investment.

: Apple can now sell iPhone 16 in Indonesia following a five-month ban due to local component requirements. The company agreed to invest $1 billion in its first factory in the country, correcting previous investment inadequacies. Indonesia's decision comes as Apple diversifies its global manufacturing, now including Brazil, India, and Vietnam.

After a five-month halt, Apple is set to resume iPhone 16 sales in Indonesia as both parties reached an agreement. The ban arose when Apple failed to meet Indonesia's rule that mandates 40% of smartphones' components must be locally produced.

To address the issue, Apple pledged a substantial investment of $1 billion for its inaugural manufacturing plant in Indonesia. Previously, a $100 million offer by Apple was rejected, deemed insufficient by Indonesia for allowing smartphone sales.

This resolution aligns with Apple's strategy to diversify its supply chains away from China, with iPhone 16 production in Brazil, India, and China. Indonesia had similarly banned Google Pixel phones for lacking local components, consistent with ongoing enforcement of local content regulations.

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