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