Apple Inc (NASDAQ:AAPL) could enjoy a boost in international smartphone sales once it’s cleared to sell the iPhone 16 in Indonesia.
What Happened: Apple has been unable to sell the iPhone 16 in Indonesia since October, due to the Cupertino, California-based company not meeting investment commitments in the country.
According to Reuters, citing Indonesia's industry minister, the two sides have now worked out an agreement. Apple agreed to a new manufacturing plant in the country. It will also invest in a research and development center in Indonesia to produce components for products like AirPods.
Apple currently has no manufacturing facilities in Indonesia, but had previously pledged to invest in the region. Indonesian rules call for smartphones and tablets sold in the country to have at least 40% locally produced components, according to the report.
It is currently unknown how quickly the ban on the iPhone 16 in Indonesia could end.
Why It's Important: With a population of more than 280 million people, Indonesia is among the largest countries in the world. It’s also a key growth market for companies and consumer products to target.
The news of investment in Indonesia follows Apple's recent announcement that it would invest $500 billion over the next four years in the U.S.
Indonesia had smartphone growth of 15.5% year-over-year in 2024. Around 40 million units were sold, according to the International Data Corporation.
Smartphone sales were up 9.6% year-over-year in the fourth quarter in Indonesia.
The country's ultra-low-end range of under $100 and mid-range $200 to $600 price ranges for smartphones saw the biggest growth in 2024. The premium $600+ sales price saw growth of 9.2% year-over-year.
The average smartphone selling price in Indonesia in 2024 was $195.
Apple has made progress with growth of its iPhone in several international markets. A return to Indonesia could be another catalyst for the company on top of its upcoming iPhone 16e, a cheaper-priced option in several markets.
AAPL Price Action: Apple stock is down 2.9% Wednesday versus a 52-week trading range of $164.08 to $260.09. Apple stock is up 32% over the last year.
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Photo courtesy: Apple
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