iPhone 16 now banned in Indonesia amidst regulatory hurdles
This could significantly affect Apple's broader push into the Asian market.
The iPhone 16 is only two months old, but it's already faced some major challenges. Last month, a fire broke out at one of its production plants in India, and now Indonesia has decided to ban the sale of the device in the country.
On October 25, Indonesia's Ministry of Industry announced the ban, citing Apple’s failure to meet local regulatory requirements. But it’s not all bad—people can still use and import the phone for personal use, though it might be a bit more expensive.
These requirements have been in place since 2017, requiring smartphone companies to invest in the country and maintain a 40% domestic production value for 4G phones, all in a bid to protect the interests of the local industry.
Unlike competitors like Samsung and Xiaomi, which have complied with these requirements since its enactment, Apple has invested only 1.5 trillion rupiah ($95 million) of the mandated 1.71 trillion rupiah ($108.7 million) in Indonesia.
Samsung and Xiaomi have also established manufacturing facilities in the country to meet the regulation but Apple opted instead to focus on setting up developer academies, establishing four so far.
According to The Strait Times, around 9,000 units of the iPhone 16 were legally imported between August and October, but selling these phones would make them illegal under the current ban.
Currently, this setback appears to be Apple's first significant challenge in the Asian market other than the fire outbreak with no reports of being resolved yet. Since launching the iPhone 16 in September, Apple has been intensifying its focus on Asia, particularly India, where it began local production of the iPhone 16 Pro models and even reduced prices.
However, it’s uncertain how long it will take Apple to meet the requirements necessary to resume legal sales in Indonesia. The company did reassure the public on October 11 that it’s actively working to bring back all its latest products, including the iPhone 16 lineup, to the Indonesian market as soon as possible.
Overall, the iPhone 16 has received mixed reviews since its release, especially given the high expectations surrounding Apple Intelligence that was announced with it. With the device still fresh on everyone's minds, it remains to be seen how these recent developments will impact its sales in the future.
