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3 Things Why is Apple Building a Factory? Is it just for iPhone 16?
Indonesia is a very attractive market for Apple, given its large population and high mobile phone usage rate. According to government data, there are more than 350 million active cell phones in Indonesia, far exceeding the population of 270 million. - Apple Builds Factory However, this huge potential does not necessarily make Indonesia the first choice location for Apple to set up a factory. Some of the challenges Apple faces in Indonesia include: 1. TKDN (Domestic Component Level) Requirements The Indonesian government requires electronic device manufacturers to fulfill TKDN requirements so that their products can be freely marketed in the country. This requirement requires companies to use a certain amount of local components, which is an obstacle for Apple that relies more on global supply chains. - Less Competitive Manufacturing Infrastructure Compared to Vietnam, manufacturing infrastructure in Indonesia still needs a lot of improvement. Regulatory instability and [...]