Apple's $1 Billion Investment May Soon End Indonesian iPhone Ban

[webkit]

Looking forward to your support for the incoming American administration demanding that foreign companies pay a billion dollars before being able to sell their products in the US!

Countries are allowed to impose or increase business costs/fees on foreign countries whether it be through tariffs or other means. Trump, Biden and other administrations have done so plenty of times.

Biden to increase tariffs on $18 billion in Chinese imports in a new warning to Beijing | CNN Politics

President Joe Biden is increasing tariffs on $18 billion in Chinese imports across a handful of sectors deemed strategic to national security – an attempt to cripple Beijing’s development of critical technologies and instead prioritize US production.

www.cnn.com

Biden finalizes increases to China tariffs | CNN Politics

The Biden administration said Friday that it has finalized tariff hikes on certain Chinese-made products that the president first announced in May.

www.cnn.com

 

[webkit]

Blackmail works.

How is it blackmail? What deep dark secrets or damaging information does Indonesia have on Apple that makes it blackmail? Indonesia is requiring a payment (investment) in order to do business in their country just as Apple requires payments (up to 15% to 30% commission) in order to do business in Apple's "country" (iOS) except perhaps in the EU. Neither is blackmail.

 

[ChrisA]

It’s almost like protectionist nationalism will have consequences.

No. It is not at all like Trump-Tariffs. Tariffs are a tax paid by your own citizens. But requiring an investment is a tax paid by people who don't live in your country. Requiring the investment is a MUCH smarter move because you get something of lasting value, job training, and factories.

However, one wonders how Apple could open a factory there. Currently, the Indonesian unemployment rate is low at just under 5%. This rate, 5% is typically the threshold where employers find it hard to recruit employees without having to offer higher pay to entice people to quit their current jobs. This is what is driving inflation now.

 

[surferfb]

Countries are allowed to impose or increase business costs/fees on foreign countries whether it be through tariffs or other means. Trump, Biden and other administrations have done so plenty of times.

Biden to increase tariffs on $18 billion in Chinese imports in a new warning to Beijing | CNN Politics

President Joe Biden is increasing tariffs on $18 billion in Chinese imports across a handful of sectors deemed strategic to national security – an attempt to cripple Beijing’s development of critical technologies and instead prioritize US production.

www.cnn.com

Biden finalizes increases to China tariffs | CNN Politics

The Biden administration said Friday that it has finalized tariff hikes on certain Chinese-made products that the president first announced in May.

www.cnn.com

No one is suggesting they aren't allowed to. We're just saying it's a shakedown, which it undeniably is. Whether Indonesia does it, or the US does it, or the EU does it.

I'd argue tariffs, which are paid by the company importing the good, is significantly different than "Hey big company pay us a billion dollars or no one is allowed to import or sell your product".

Indonesia is requiring a payment (investment) in order to do business in their country just as Apple requires payments (up to 15% to 30% commission) in order to do business in Apple's "country" (iOS) except perhaps in the EU. Neither is blackmail.

You keep using this argument and it remains ridiculous. There is nothing comparable to Apple requiring developers who 1) use Apple's property (that it developed and maintains) to sell their wares to 2) a customer base Apple attracted to pay a commission for use of said property and services. Apple selling their products in Indonesia costs Indonesia nothing - and in facts gains them tax revenue. It's a straight up "you're rich, so pay me".

 

[hooptyuber]

How is it blackmail? What deep dark secrets or damaging information does Indonesia have on Apple that makes it blackmail? Indonesia is requiring a payment (investment) in order to do business in their country just as Apple requires payments (up to 15% to 30% commission) in order to do business in Apple's "country" (iOS) except perhaps in the EU. Neither is blackmail.

 

[webkit]

I'd argue tariffs, which are paid by the company importing the good, is significantly different than "Hey big company pay us a billion dollars or no one is allowed to import or sell your product".

It's not significantly different as both involve payments of some kind in order to do business in a particular "property" (country/region or IOS/iPhone).

You keep using this argument and it remains ridiculous. There is nothing comparable to Apple requiring developers who 1) use Apple's property (that it developed and maintains) to sell their wares to 2) a customer base Apple attracted to pay a commission for use of said property and services. Apple selling their products in Indonesia costs Indonesia nothing - and in facts gains them tax revenue. It's a straight up "you're rich, so pay me".

It's hardly ridiculous and is more similar than you seem to want to believe. In both circumstances, requirements are put in place to do business in one's "property" (country/region or iOS/iPhone).

Both the Indonesia and iOS/app scenarios are legal, unlike blackmail and extortion.

 

[webkit]

View attachment 2464066

What are you implying? Apple obligating an app developer to pay Apple a developer fee and up to 15% to 30% of their iOS app/in-app sales, or else they won't be allowed in the App Store/iOS or will be removed from the App Store/iOS, is blackmail?

 

[danny842003]

No. It is not at all like Trump-Tariffs. Tariffs are a tax paid by your own citizens. But requiring an investment is a tax paid by people who don't live in your country. Requiring the investment is a MUCH smarter move because you get something of lasting value, job training, and factories.

However, one wonders how Apple could open a factory there. Currently, the Indonesian unemployment rate is low at just under 5%. This rate, 5% is typically the threshold where employers find it hard to recruit employees without having to offer higher pay to entice people to quit their current jobs. This is what is driving inflation now.

Of course it’s like Trumps tariffs if the richest country isn’t going to play by the established rules why shouldn’t other countries dream up ways that will aid them. Once the norms go out the window this is exactly what’s going to happen.

 

[farmboy]

Countries are allowed to impose or increase business costs/fees on foreign countries whether it be through tariffs or other means. Trump, Biden and other administrations have done so plenty of times.

Biden to increase tariffs on $18 billion in Chinese imports in a new warning to Beijing | CNN Politics

President Joe Biden is increasing tariffs on $18 billion in Chinese imports across a handful of sectors deemed strategic to national security – an attempt to cripple Beijing’s development of critical technologies and instead prioritize US production.

www.cnn.com

Biden finalizes increases to China tariffs | CNN Politics

The Biden administration said Friday that it has finalized tariff hikes on certain Chinese-made products that the president first announced in May.

www.cnn.com

Surely you know that tariffs are paid by the importers—the American companies for instance, not the country exporting the goods to the US. That’s different than what Indonesia is doing.

 

[Ronald Reagan]

Hopefully Apple will get Indonesia to throw in Apple Pay too for that sort of coin. Apple Pay is not accepted in Indonesia as it stands.

 

[webkit]

Surely you know that tariffs are paid by the importers—the American companies for instance, not the country exporting the goods to the US. That’s different than what Indonesia is doing.

This is about a company having to pay money to or make some sort of investment in a country in order to be able to do business in that country.

Manufacturers such as Apple can be direct importers which means Apple may have to pay money to the U.S. (a tariff) in order to sell iPhones or other products in the U.S. just as Apple may have to pay (or make an investment in) Indonesia in order to sell iPhones or other products in Indonesia. Again, both are payments or investments of some kind in order to be able to do business in a country.

 

[wbeasley]

not that many countries with ±280 mil citizens that are sitting on large chunk of tin which Apple sources from them... did you cry also when Indian government pushed Apple to build factories there to avoid luxury import taxes?

Indian has long protected it's industries with high import duties.
And a billion+ citizens is an even bigger incentive to do business there.
The growing middle class want a better life meaning they are good targets for Apple products.

They speak English. They have a cheap labour force.
Many love their lax attitude to safety (not saying Apple did it for that reason).

It also diversifies away from China.

So to answer your accusation, I didnt have a cry when Apple built factories in India

 

[John_Blackthorne]

It's just straight up bribery.

 

[StoneJack]

It is not anything

It's just straight up bribery.

nope

 

[NMBob]

Let's just all try to get along while we wait to see how much of this "investment" actually gets built.