The Indonesian government has prohibited the sale of Apple Inc.’s AAPL iPhone 16 due to the company’s failure to meet its investment commitments in the country.
What Happened: The Indonesian government has banned the sale of Apple’s iPhone 16 in the country due to the company’s inability to fulfill its investment obligations, the South China Morning Post reported on Wednesday.
The Minister of Industry, Agus Gumiwang Kartasasmita, stated that Apple has not met its investment commitments and must renew its local content license.
“Apple’s iPhone 16 cannot be sold in Indonesia yet because the extension of the TKDN certification is still pending, awaiting further investment realization from Apple,” Agus said.
Apple has invested 1.48 trillion rupiah ($95.08 million) in Indonesia, which falls short of its total commitment of 1.71 trillion rupiah ($109.59 million). The company has not yet met its promised investments through four research and development facilities in Indonesia. The shortfall between the investment made and the original commitment is 230 billion rupiah ($14.75 million).
Why It Matters: This move comes as a surprise, considering Apple’s recent success in the smartphone market. In the third quarter of 2024, Apple’s iPhone 16 powered record sales, with the company capturing an 18% market share, just behind Samsung.
Earlier in April, Apple had expressed interest in expanding its manufacturing base to Indonesia following discussions between CEO Tim Cook and the Indonesian President.
Despite the ban, Apple’s iPhone 16 series has been leading growth in the smartphone market, according to JPMorgan analyst Samik Chatterjee.
Price Action: Apple Inc.’s stock closed at $233.85 on Tuesday, up 1.10%, for the day. In after-hours trading, the stock rose 0.11%. Year to date, Apple’s stock has increased by 25.97%, according to data from Benzinga Pro.
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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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