After an absence of more than a year from Southeast Asia’s largest smartphone market, the iPhone arrives back in Indonesia today with the long-awaited debut of the iPhone 7.
Apple has been unable to sell the previous iPhone 6s, 6s Plus and iPhone SE generation of its handsets after a ruling in the country that all makers of 4G smartphones must have 30 percent of “local content” — meaning hardware, software, or an investment commitment.
In an effort to get the iPhone back into the world’s fourth most populous country — after China, India and the U.S. — Apple agreed to increase its investment in Indonesia late last year. This involved a commitment to invest $44 million in the country in the form of three new R&D centers.
As a result, Apple was awarded “local content certification,” issued by I Gusti Putu Suryawirawan, Indonesia’s director-general for metal, machines, transport equipments and electronics. By securing this, Apple was able to once again access Indonesia’s population of 250 million people.
The iPhone 7 will be available through six retailers across major cities in Indonesia, with local wireless carrier Smartfren becoming the first the first Indonesian carrier to be Apple’s official partner for the latest handset.
Local content
Apple’s efforts to resolve its situation in Indonesia are reminiscent of similar efforts in India and China, which are both markets Apple is eager to expand its business in.
To open official Apple stores in India and generally increase its foothold in the country, Apple has agreed to open a $25 million on a new office complex in India, as well as a brand new local office dedicated to Apple Maps. Very soon it will commence manufacturing iPhones in India as well.
In China, meanwhile, Apple has also announced the opening of new R&D centers that will similarly employ large numbers of people.
Earlier this week, we reported that Apple has additionally gotten around local sourcing laws in Argentina, where Apple devices have been difficult to get hold of for 8 years, due to similar demands by the government. In that case, however, the company did not have to commit to local manufacturing to get its products back in the country.
Via: ValueWalk
