Apple Might Have To Commit $1 Billion To Indonesia To Reverse iPhone 16 Ban

Apple Inc AAPL could commit to a $1 billion investment in Indonesia in a week, Reuters cites the country’s investment minister Rosan Roeslani on Tuesday.

Indonesia had banned the sale of iPhone 16 due to a violation of the country’s content rules that mandated a minimum of 40% locally sourced components for companies aiming to sell smartphones in the country.

Indonesia plans to raise the investment criteria, Reuters cites a deputy minister.

Also Read: Meta Weighs Sole Ownership Of A $10 Billion Subsea Cable Project

In November, Indonesia rejected Apple’s $100 million investment offer to build an accessory and component plant, deeming it insufficient to lift the ban.

Apple has no manufacturing facilities in Indonesia. Indonesia expects more investment from Apple in return for its inclusion in the company’s supply chain, Reuters cites Roeslani in a hearing.

Previously, Indonesia barred Alphabet Inc GOOG GOOGL from selling its Google Pixel phones in the country for similar non-compliance.

Apple’s geographical diversification of its supply chain marks its attempts to reduce dependence on China due to the disruption following China’s pandemic in 2020 and intensifying geopolitical tensions with the U.S.

On Monday, the Biden administration launched its third semiconductor embargo on China, restricting Chinese chip equipment manufacturers from advanced memory chips and chipmaking tools, citing national security threats.

The iPhone company reported fiscal fourth-quarter revenue of $94.9 billion, topping analyst estimates of $94.56 billion. Adjusted EPS of $1.64 surpassed forecasts of $1.60.

Bank of America flagged potential in Apple Intelligence, boosting iPhone cycles and product demand. Goldman Sachs also projected growth with iPhone 16 and Apple Intelligence.

Is Apple A Good Stock To Buy?

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like Apple‘s page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. Apple does pay a dividend, which yields 0.5% per year as of the closing price on Dec. 3, 2024. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

For example, if you're looking to earn an annualized return of 13.81%, you'll need to buy a share of PIMCO Dynamic Income by the Dec. 12, 2024. Once done, you can expect to receive a nominal payout of $0.22 on Jan. 2, 2025.

Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on Apple will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.

Price Action: AAPL stock is up 0.56% at $240.94 at the last check on Tuesday.

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