Apple Inc committed to an investment of close to $44 million in a center for research and development in Indonesia during the upcoming three years, said an official in the government. That has enabled the tech giant to begin sales of its most recent iPhone 7 in the country.
Indonesia is becoming a promising market for smartphone sales where Apple has lagged behind rivals. The country has stipulated that beginning in January of 2017, all handsets with 4G sold in the country must have local content of 30%.
That rule is able to be met through hardware, software or a commitment to investing.
Apple was given a local content certificate last November by the corresponding ministry.
The ministry said that Apple had committed close to $44 million as an investment in the center for R&D over a period of three years. Therefore, it can distribute its devices priced at $488 or 6 million rupiah and above, which means all of its iPhones will now be able to be distributed.
A spokesperson for Apple did not confirm the figure for its investment but did point out an announcement made last year that the tech company committed to building an App Development Center for iOS in Indonesia.
Apple will be fighting a difficult battle in Indonesia where there are over 250 million people. The country has a young, demographic that is internet-savvy that is amongst the biggest users in the world of different sites of social media.
During the 2016 second quarter, Samsung, based in South Korea, led the smartphone market in Indonesia with an overall share of 26% based on volume of sales.
The South Korea electronics giant was trailed in second place by OPPO a smartphone maker from China that held 19% of the overall market, showed data received from online research company IDC.
However, both Samsung as well as OPPO have factories operating in the country.
The army of OPPO sales representatives, its blitzes of advertisements and is prices that is middle of the road, propelled it to the No. 2 spot in all of Indonesia over a period of only three years.
Apple will be trailing those two and other manufacturers in the country, but should quickly start to take its share of the market due to its consist high marks from its users.