Negotiating with considered one of many largest companies on this planet doesn’t sound easy, nevertheless that’s precisely what Indonesia has been doing for the previous couple of weeks with iPhone maker Apple. The backstory proper right here is that after the nation required smartphones which are provided domestically to be constituted of not lower than 40% regionally manufactured components, Indonesia banned iPhone 16 product sales. In November 2024, authorities even confiscated and destroyed present iPhone fashions, as confirmed throughout the picture above.
Now, Reuters tales that Apple plans to spend $1 billion on its first manufacturing plant in Indonesia. The manufacturing unit will produce smartphone components and totally different components for Apple merchandise.
Whereas the switch follows Indonesia’s crackdown on abroad manufacturing, it matches a sample as over the previous couple of years Apple has diversified its present chain to cut back reliance on China. For instance, the iPhone 16 is at current manufactured in Brazil and Indiaalong with China. Many AirPods fashions are moreover assembled in Vietnam.