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  • Apple Makes R&D Plan to Meet Indonesian Phone Sales Rule

    Apple is reportedly planning to build research and development facilities in Indonesia. This move was formulated to help satisfy a new rule that requires foreign made phones to contain a percentage of domestically produced components, which was recently approved by the Indonesian government.

    According to Bloomberg, the Indonesian Minister of Communications and Technology, Rudiantara, informed Apple of the rule during a trip to California last month. The stipulation is set to take effect in 2017 and requires foreign phone makers to source at least 30% of their components from domestic products. Rudiantara mentioned that Apple can “take the hardware route or the software and development route” to meet this particular criteria.

    The US government is set to be on board as well, with Rudiantara claiming both US Assistant Secretary of State for Economic & Business Affairs Charles H. Rivkin and US Ambassador to Indonesia Robert Blake were “okay” with Indonesia’s plan after being briefed on the matter. The move is one that Indonesia is attempting to bolster domestic manufacturing assets with the new rule. For the Cupertino California company, building out local R&D capabilities might be worth the investment as Rudiantara mentioned that Indonesia imported roughly $5 billion worth of smartphones this past year.

    The Cupertino California company is looking beyond developed markets such as North America and Europe to areas that can help maximize the iPhone’s growth potential. China is typically seen as the largest emerging market and the company has dedicated massive resources to building out its retail presence in the country. This appears to be paying off for the company as Apple reported China revenue hit $12.5 billion for the most recent fiscal quarter, which is a year-over-year increase of 99%.

    We’ll have to see how this effort behind the creation of R&D facilities in Indonesia works out.

    Source: Bloomberg
    This article was originally published in forum thread: Apple Makes R&D Plan to Meet Indonesian Phone Sales Rule started by Akshay Masand View original post