Apple invests $44M into Indonesian R&D to unlock local iPhone sales

Posted:
in iPhone
Apple has reportedly agreed to invest $44 million in an Indonesian research and development center, in a move likely geared mainly toward opening up sales of the iPhone 7, as well as future iPhones.




Starting in January, all 4G phones sold in Indonesia must meet a requirement of 30 percent local content, Reuters explained on Friday. While a similar rule exists in India, in Indonesia, this can be met with software or investment and not just physical components -- Apple received a "local content certification" in November, according to a director-general from the country's industry ministry, Gusti Putu Suryawirawan.

The $44 million will be spent over three years, Suryawirawan said, letting the company sell iPhones priced at $448 and above, which includes every current model.

Apple will have to take ground from firmly established Android phone makers if it wants a share of the Indonesian market. Samsung has a 26 percent share in the country, followed by Oppo's 19 percent, and both of those companies offer cheaper alternatives to the iPhone in their product lines.

The region does have a population of over 250 million people however, likely offering Apple enough room to capture at least part of the high-end smartphone market.

Comments

  • Reply 1 of 9
    gatorguygatorguy Posts: 19,805member
    Money well-spent. Can't imagine how only $40M over three years would meet the "30% local content" requirement of the existing law but why look a gift horse in the mouth? Nice job by whoever negotiated it. 
    watto_cobra
  • Reply 2 of 9
    Bribery by any name....  It used to be illegal for American businesses to bribe foreign officials to obtain their business, but I guess not anymore.  How much of that $40M will help the people and economy of Indonesia, and how much will end up in the (foreign) bank accounts of the leaders?
    james john
  • Reply 3 of 9
    auxioauxio Posts: 1,949member
    Bribery by any name....  It used to be illegal for American businesses to bribe foreign officials to obtain their business, but I guess not anymore.  How much of that $40M will help the people and economy of Indonesia, and how much will end up in the (foreign) bank accounts of the leaders?
    And it's Apple's job to reform this government corruption? (if it does exist -- you haven't given any proof)  How many of their competitors have done the same to get business in the area?  Maybe think a bit more deeply on a real solution to these problems before you turn it into a crusade against one company.
    badmonkpatchythepiratewatto_cobra
  • Reply 4 of 9
    Bribery by any name....  It used to be illegal for American businesses to bribe foreign officials to obtain their business, but I guess not anymore.  How much of that $40M will help the people and economy of Indonesia, and how much will end up in the (foreign) bank accounts of the leaders?
    Here is an excerpt from Reuters link which Appleinsider provided… 

    "Apple received a "local content certification" in November, I Gusti Putu Suryawirawan, director-general for metal, machines, transport equipments and electronics at the industry ministry, said in a text message.

    An Apple spokeswoman declined to confirm the investment figure, but pointed to an announcement last year that the U.S. tech company had committed to build an iOS App Development Center in Indonesia."

    This is not a bribe but how and actual "deal" looks.

    edited December 2016 watto_cobraslprescott
  • Reply 5 of 9
    auxio said:
    Bribery by any name....  It used to be illegal for American businesses to bribe foreign officials to obtain their business, but I guess not anymore.  How much of that $40M will help the people and economy of Indonesia, and how much will end up in the (foreign) bank accounts of the leaders?
    And it's Apple's job to reform this government corruption? (if it does exist -- you haven't given any proof)  How many of their competitors have done the same to get business in the area?  Maybe think a bit more deeply on a real solution to these problems before you turn it into a crusade against one company.
    Hold your horses, I wasn't aiming this at Apple, I was only pointing out how the slippery slope has gotten slipperier, and I fully expect it will get even more so going forward
    edited December 2016
  • Reply 6 of 9
    How is this a bribe if it's an investing in R&D staff and infrastructure? can any of your skeptics link us to evidence that it's merely going into someone's pocket? 
    watto_cobra
  • Reply 7 of 9
    auxioauxio Posts: 1,949member
    auxio said:
    Bribery by any name....  It used to be illegal for American businesses to bribe foreign officials to obtain their business, but I guess not anymore.  How much of that $40M will help the people and economy of Indonesia, and how much will end up in the (foreign) bank accounts of the leaders?
    And it's Apple's job to reform this government corruption? (if it does exist -- you haven't given any proof)  How many of their competitors have done the same to get business in the area?  Maybe think a bit more deeply on a real solution to these problems before you turn it into a crusade against one company.
    Hold your horses, I wasn't aiming this at Apple, I was only pointing out how the slippery slope has gotten slipperier, and I fully expect it will get even more so going forward.
    And yet, that's the way the Internet works these days.  Post an idea which you may or may not have intended to be "aiming" and it turns into an avalanche of aiming by those who either have an agenda (ala the one post wonder who picked it up) or don't have the mental capacity to think beyond the few words/catchphrases which they'll mindlessly repeat everywhere.  Then shoddy news agencies pick it up for clickbait and it turns into the de jour argument for the masses to consume.
    edited December 2016 watto_cobra
  • Reply 8 of 9
    Indonesia have many foreign investors building phone factories, but it was more assembling jobs.
    so they didn't have any transfer technology scheme
    one of the first serious investor for the software research is apple, and they gladly accept
    patchythepiratewatto_cobra
  • Reply 9 of 9
    flaneurflaneur Posts: 4,495member
    blasev said:
    Indonesia have many foreign investors building phone factories, but it was more assembling jobs.
    so they didn't have any transfer technology scheme
    one of the first serious investor for the software research is apple, and they gladly accept
    Thanks for a better point of view here.
    jSnivelywatto_cobra
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