Roger Fingas
Apple has reportedly agreed to invest $44 million in an Indonesian research and development center, in a move likely geared mainly toward opening up sales of the iPhone 7, as well as future iPhones.
Starting in January, all 4G phones sold in Indonesia must meet a requirement of 30 percent local content, Reuters explained on Friday. While a similar rule exists in India, in Indonesia, this can be met with software or investment and not just physical components — Apple received a "local content certification" in November, according to a director-general from the country's industry ministry, Gusti Putu Suryawirawan.
The $44 million will be spent over three years, Suryawirawan said, letting the company sell iPhones priced at $448 and above, which includes every current model.
Apple will have to take ground from firmly established Android phone makers if it wants a share of the Indonesian market. Samsung has a 26 percent share in the country, followed by Oppo's 19 percent, and both of those companies offer cheaper alternatives to the iPhone in their product lines.
The region does have a population of over 250 million people however, likely offering Apple enough room to capture at least part of the high-end smartphone market.
Andrew O'Hara
Charles Martin
Christine McKee
Malcolm Owen
9 Comments
Money well-spent. Can't imagine how only $40M over three years would meet the "30% local content" requirement of the existing law but why look a gift horse in the mouth? Nice job by whoever negotiated it.
Bribery by any name.... It used to be illegal for American businesses to bribe foreign officials to obtain their business, but I guess not anymore. How much of that $40M will help the people and economy of Indonesia, and how much will end up in the (foreign) bank accounts of the leaders?