Apple Inc. (NASDAQ:AAPL) remains unable to sell its iPhone 16 in Indonesia.
What Happened: Apple has not met Indonesia's domestic content requirements, which stipulate that smartphones sold in the country must include at least 35% locally-made components.
This rule led to the ban on iPhone 16 sales last year.
According to Indonesia's Industry Minister Agus Gumiwang Kartasasmita, Apple has agreed to establish a facility on Batam Island to produce its AirTag devices.
However, this does not satisfy the local content criteria for iPhones, reported Reuters.
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"There is no basis for the ministry to issue a local content certification as a way for Apple to have the permission to sell iPhone 16 because (the facility) has no direct relations," Agus stated, adding that only phone components would be considered.
Indonesia's investment minister announced the factory's value at $1 billion, with operations expected to commence next year.
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Why It Matters: The ban on iPhone 16 sales in Indonesia is a significant hurdle for Apple, especially given its record sales performance in the third quarter of 2024. Apple narrowly trailed Samsung Electronics Co. (OTC:SSNLF) in global market share, capturing 18%.
iPhones play a crucial role in Apple's earnings, making up about half of the company's total revenue.
The tech giant reported strong financial results in the fourth quarter, with a revenue beat of $94.9 billion. iPhone revenue climbed to $46.22 billion, up from $43.8 billion in the previous year.
Price Action: Apple's stock ended Wednesday's trading session with a 0.2% increase, closing at $242.7. However, in after-hours trading, the shares slipped by 0.12%, settling at $242.4, according to Benzinga Pro data.
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Photo courtesy: Unsplash
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
