Apple has officially launched the iPhone 16 lineup in Indonesia after resolving a months-long sales ban imposed by the country’s government. The delay, which lasted five months, was due to Apple’s failure to meet investment commitments required by Indonesian regulations. Initially, Apple pledged $109 million for a developer academy in the country but fell short by $14 million. Additionally, the company had committed $10 million for local manufacturing.
To address the issue, Apple increased its manufacturing investment to $100 million and added another $150 million for local AirTag production. These measures allowed the government to lift the ban, and sales began on April 11, 2025.
The sales ban had a big impact on both Apple and Indonesian consumers. Before the restriction went into effect, Apple shipped only 9,000 iPhone 16 units to Indonesia, a country with a population exceeding 283 million. Local regulations also prevent citizens from using smartphones purchased abroad without mandatory IMEI registration, further limiting access to new iPhones during the ban.
In the United States, rising tariffs on Chinese imports are creating challenges for Apple. The tariff rate has increased to 145%, up from 125%, which is likely to result in higher prices for iPhones manufactured in China. Analysts say models like the iPhone 16 Pro Max could cost up to $800 more due to these tariffs.
Although Apple has been working on diversifying its supply chain by producing some devices in India, about 90% of iPhones sold in the U.S. are still made in China. If tariffs remain at current levels and inventory runs low, Apple may need to adjust its pricing strategy or explore other manufacturing options.
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