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Hello reader,
As someone who’s been an Android user for years, I’ve never really understood the hype around the iPhone, especially every time a new model comes out.
Is it worth it to shell out big bucks for a few upgrades on a new phone? Are my selfies really going to look that much better? Will I enjoy my doomscrolling a tenth of a percentage point more?
As the market demands growth, it’s understandable why Apple keeps coming out with new products. That’s why a sales ban for the iPhone 16 in Indonesia is a big problem for the company.
Today’s featured piece dives into what Apple may do to overcome this hurdle and get sales flowing in the country.
On another note, the Daily Newsletter will take a break for the Lunar New Year – the next edition will be out on February 4. Happy holidays!
Today we look at:
- Apple’s Indonesia conundrum
- How DeepSeek is shaking up the world of AI
- Other newsy highlights such as Trump floating Microsoft as a possible TikTok buyer and India’s Shiprocket gearing up for an IPO
Premium summary
Becoming the Apple of Indonesia’s eye
Image credit: Timmy Loen
Apple is currently unable to sell the iPhone 16 in Indonesia after falling afoul of local content requirements.
The firm is reportedly close to striking a deal with the government to lift the ban, so what shape could that agreement take?
- Some background: Under Indonesian law, at least 40% of the components in a smartphone sold in the market should be produced locally, which is not the case for iPhones. In response, Apple proposed building a US$1 billion factory in the country to produce AirTags, but the government deemed this insufficient.
- Throw cash at the problem?: Short of shifting iPhone production to the country, Apple could commit more investments to Indonesia in hopes of lifting the ban. This could include setting up factories to make accessories like charging cables and adapters as well as building a data center or an R&D center.
- Better together?: Alternatively, Apple could partner with an Indonesian company via a joint venture or an M&A, similar to what TikTok Shop did with Tokopedia. While a complex option, it could make negotiations with the government easier.
A new dawn for AI?
The practice will pay off at #TIAConference2025
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