The restriction on the iPhone 16 imposed by the Indonesian government last year is set to be lifted, according to a recent report, with the latest models scheduled to return to the market on April 11.
The prolonged dispute between Apple and Indonesia has reportedly cost the tech giant at least $300 million and could go as high as $1 billion over the next decade.
Overview of the iPhone 16 restriction
This situation has involved lengthy and challenging negotiations.
Initially, Apple made a $109 million investment in Indonesia by establishing a developer academy, along with an additional $10 million allocated for manufacturing. The Indonesian government claimed that Apple did not meet its initial commitment, stating the actual expenditure was only $95 million. As a result of this minor deficit, the sale and use of iPhone 16 models were prohibited in the country.
With a population of approximately 280 million and a growing economy, this issue was significant for Apple. In response, the company proposed a tenfold increase in its manufacturing budget in Indonesia, increasing from $10 million to $100 million. However, the government expressed expectations for further growth, requesting another tenfold increase to reach $1 billion.
Agreement reached – but investment details unclear
Reports from last month indicated that Apple had come to an agreement, with a formal deal anticipated soon.
Reuters has reported today that a consensus has been achieved, allowing the iPhone 16 to be available again from April 11. However, it mentions a reduced investment figure of $300 million.
Apple’s iPhone 16 lineup will be launched in Indonesia starting April 11, as stated on Wednesday, following Jakarta’s decision to remove the sales ban based on the company’s investment plan exceeding $300 million.
The reason for the variation in investment figures remains unclear. It’s possible that Apple has negotiated a more favorable deal than initially expected, or that the $300 million is just a preliminary investment considering the billion-dollar figure was projected to be allocated over a ten-year span.
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