Apple has confirmed a plan to invest US$3 billion in Indonesia this year. Apple Inc planned to invest in Indonesia after Taiwan-based Foxconn Technology Group which supplies and assembles Apple Inc products intended to relocate its plant in Indonesia.
According to the Indonesia’s leading blog, Bixbux; in the first phase, Apple Inc would open stores and online stores in Jakarta. Apple will reportedly invest $2 to $3 million in this plan, contributing to the development and opening of its first store in Indonesia. This will help Apple to strengthen its retail presence in Asia, as well as to provide direct sales to locals, who previously imported Apple products from Singapore or ordered them through an authorized reseller.
This isn’t actually the first time that Apple has operated an online store in Indonesia. Apple began selling online between 2008 and 2010, but was forced to shut this service down due to shipping irregularities that started appearing in 2010. Three months later, Apple suspended its online operations, but kept the site online to promote its products, pricing and to direct customers to authorized resellers. Most of the time, though, the prices listed on the website ended up being a lot lower than actual prices in reseller stores.
With a population of nearly 250 million and a growing middle class, Indonesia is becoming an increasingly important market for Apple and its rivals, as is the wider Asian region. Apple CEO Tim Cook said recently that at some stage he expects China to become the company’s biggest market, taking the place of the US.
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