$44 Million R&D investment allows Apple to sell the iPhone 7 in Indonesia

Apple has pledged to commit $44 million as an investment for an Indonesian R&D center in order to obtain a certificate that would allow the distribution of the iPhone 7 across the country.

The funds will be provided over the course of three years and the investment will comply with a telecommunications policy that the Indonesian government will introduce in 2017. As of next year, all 4G smartphones sold in the country must have “local content” of 30% or more in terms of software, hardware or an investment commitment. If a manufacturer fulfills these conditions, a“local content certification” will be granted in order to allow the distribution of devices priced at 6 million rupiah ($448) and above.

News agency Reuters approached Apple for a confirmation of the investment figure, but the company declined to comment and pointed to an announcement from 2015, in which Apple had committed to construct an iOS App Development Center in the country.

It is not surprising that Apple is looking to increase its stature on the Indonesian smartphone market. The nation has a population of over 255 million people, and a lot of it is comprised of young and tech-savvy people.

The Cupertino-based tech giant has a long way to go in order to catch up with Samsung and Oppo, which are the most popular handset producers among Indonesians. Samsung was responsible for 26% of smartphone sales by volume for Q2 2016, and China's Oppo held 19%. Both manufacturers have factories in Indonesia.

source: Reuters via MacRumors

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14 Comments

1. cnour

Posts: 2305; Member since: Sep 11, 2014

Innovation is coming to Indonesia. Thanks Apple....

6. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Still thumbing up your own posts? Gosh dude...you're desperate...aren't you? Don't you have a girlfriend? I am sure she needs your attention. Apple has never innovated anything. Even you know this.

13. yyzamin

Posts: 382; Member since: Aug 26, 2015

Yeah, nah apple has not innovated anything. Technically purchasing music through iTunes lead to streaming services like Spotify. They may not have created the smartphone but they revolutionised the entire industry which lead to the demise of Nokia. No need to walk around with a chip on your shoulder anytime someone says something positive about Apple. Modern technology is meant to be easy to use even for people who are not tech savy. That's a big reason why apple is so popular.

8. maple_mak

Posts: 953; Member since: Dec 18, 2013

Yea, false innovation is coming since Steve Jobs has passed.

2. tiara6918

Posts: 2263; Member since: Apr 26, 2012

What a dumb move. Apple can still make profits elsewhere

4. peegieislim

Posts: 68; Member since: Dec 14, 2016

Indonesia is a big market for apple im glad they did this move

7. maple_mak

Posts: 953; Member since: Dec 18, 2013

What a joker rebirth again at PhoneArena. Indonesia not rich as you think.

14. ibend

Posts: 6747; Member since: Sep 30, 2014

yeah, but population number is the point (just like china and india market).. even if it's just 5% of it's population can afford iPhone, and 1% of it decided to get an iPhone, it's still a big number (actually it's more than 5% since people can simply sell their kidney, lol...)

5. cmdacos

Posts: 4207; Member since: Nov 01, 2016

When I see the word investment I keep reading bribe

9. WPX00

Posts: 511; Member since: Aug 15, 2015

Finally. It's shameful how behind Indonesia is in getting Apple products. The iPhone 6 took well over 5 months to launch, while the 6s and SE never even made it here. It's insane how backwards this rule is, a rule I'd expect from someone like Trump than populist Jokowi.

10. Khyron

Posts: 397; Member since: Sep 28, 2015

Apple's desperate Tries to increase the sales Numbers of sales Is falling down every day for the Itoy

11. willytbk

Posts: 252; Member since: Aug 15, 2012

It's about time for Apple to focus on another country beside China, India and Brazil as the next largest population country is Indonesia. Samsung is very smart to focus in Indonesia since years ago.....

12. insanity99

Posts: 104; Member since: Feb 28, 2015

Lots of them are tech savy and they want iPhones to be distrubuted there? I think they would love to prefer phones that has a lot of techs.

15. ibend

Posts: 6747; Member since: Sep 30, 2014

weird rule for those above "$448" price... is there any other flagships enter their market? (probably only Mi5 and OP3, cause it's below that number :-/)

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