Apple to open Indonesia store in developing market push

Summary:The iPhone and iPad maker will invest $2 to $3 million in a new retail store in the country in order to hit the burgeoning wealthy population harder, as the company retains its focus on Asia and China.

Apple will invest between $2 million and $3 million in opening a new retail store in Indonesia, according to one publication, after filing an application with the country's investment board.

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Apple Store to open in Jakarta, Indonesia, according to a report. (Credit: ZDNet)

According to NZWeek, Indonesia's Investment Coordinating Board (BKPM) has announced it approved the application earlier today, which will see Apple debut in the online space in the country first, with the eye of opening its first Apple Store in Jakarta, the country's capital city.

The move will push Apple's focus farther into Asia, while still keeping the spinning plates of China's retail stores ticking over, as the iPhone and iPad maker attempts to fill the gap from third parties who had to import products from neighboring countries, such as Singapore.

The Next Web's Matt Brian noted that Apple expanded its online store to Indonesia between 2008 and 2010, but closed it down over "shipping irregularities" in November 2010, and close operations in the country after. It kept the Website online in order to keep a presence and to show product prices, but instead of taking on orders, the company directed customers to authorized resellers.

While it's a push into the emerging and developing markets — that can't be denied — it may not directly mean that a cheaper iPhone or low-end Apple products will be hitting the stores any time soon.

Following the rare retraction of a Reuters article in which Apple senior vice president for marketing Phil Schiller said that the company would "never blindly pursue market share," it led to further speculation that the company would in fact be offering a low-end device in order to hit the markets, despite his initial semi-apparently clear suggestion that the firm would not expand into an area that it did not see as profitable.

Indonesia is a strange place at the moment. It's not quite an emerging market, but it's certainly more than developed — at least, the more wealthy areas are. The rich are very rich, and the poor are extremely poor. It's the almost "1 percent argument" all over again. For Apple, hitting the market with a single Apple Store may make sense to serve those who can afford phones, but for now China and the rest of Asia — where the stable cash flow actually is — needs to remain in focus.

There's money in Indonesia — albeit from a tiny proportion of the population — but it could be a route into other markets in the region.

Topics: Apple

About

Zack Whittaker writes for ZDNet, CNET, and CBS News. He is based in New York City.

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