Apple (AAPL) just scored a big win in Indonesia. The tech giant received local content certificates for 20 products, including the iPhone 16. This approval confirms Apple meets the country’s requirements for locally sourced components. However, Apple still needs extra permits from the communications and trade ministries before it can sell these devices.
This move comes after Apple pledged to invest over $300 million in Indonesia last month. The plan includes building factories and a research center to support local production.
Apple Fights to Overcome Strict Local Rules
Apple’s path to approval wasn’t easy. Last year, Indonesia banned the iPhone 16 due to strict local sourcing rules. Indonesian law requires 40% of smartphone components to come from local sources. Without meeting this standard, new iPhones cannot be sold in the country.
The negotiations between Apple and the Indonesian government were described as “tricky” by Industry Minister Agus Gumiwang Kartasasmita. Regardless of these challenges, Apple stayed focused on meeting these demands and growing its presence in one of Southeast Asia’s biggest markets.
Can Apple Climb the Ranks in Indonesia?
Despite its global success, Apple was not among the top five smartphone brands in Indonesia last year. The leading brands were Oppo, Xiaomi, Transsion (which includes Infinix, Tecno, and iTel), Samsung, and Vivo. However, according to Statista, as of October 2024, Apple held nearly 12% of the mobile phone market in Indonesia, marking a slight increase compared to the previous year.
However, with this new certification and a major investment plan, the company is now in a better position to challenge its rivals and capture a larger share of the market.
Is Apple a Buy, Sell, or Hold?
The stock of Apple has a consensus Moderate Buy rating among 33 Wall Street analysts. That rating is based on 18 Buy, 11 Hold, and four Sell recommendations assigned in the last three months. The average AAPL price target of $250.95 implies 6.64% upside from current levels.
