Apple iPhone 16 faces ban in Indonesia

Apple’s iPhone 16 will not be available for sale in Indonesia after the tech company failed to meet the country’s local content requirements. According to the Indonesian industry ministry, smartphones sold domestically must contain at least 40% locally made components, a threshold the iPhone 16 did not meet. Ministry spokesperson Febri Hendri Antoni Arief confirmed that while imports of the device for personal use are permitted if proper taxes are paid, Apple has not secured the necessary local content certification to market the phone widely in Indonesia.

Apple’s absence from the market could give a further edge to leading competitors OPPO and Samsung, who hold the top two positions in Indonesia’s smartphone market. The country’s large, tech-savvy population makes it a critical market for tech investment, and Indonesian officials have encouraged Apple to partner with domestic firms to meet local content requirements.

While Apple has no manufacturing plants in Indonesia, it has invested in app developer academies since 2018, amounting to around $101.8 million to support local talent and development.

The United States, Japan, and South Korea collaborate to strengthen India’s digital infrastructure

The United States, Japan, and South Korea collaborate to strengthen digital infrastructure development in India through the recently announced Digital Infrastructure Growth Initiative for India Framework, known as the DiGi Framework. The significant partnership seeks to leverage the strengths of three influential nations, with key financial support from the US International Development Finance Corporation (DFC), the Japan Bank for International Cooperation (JBIC), and the Export-Import Bank of Korea (Korea Eximbank).

The primary objective of the DiGi Framework is to promote private sector investments in India’s digital infrastructure by addressing the strategic needs of various projects. Targeted sectors include multiple technologies and services, such as information and communications technologies (ICT), Open RAN, 5G telecommunications, submarine cables, optical fibre networks, telecom towers, data centres, smart cities, e-commerce, AI, and quantum technology.

Additionally, the initiative aims to foster meaningful dialogues between the Indian government and the private sector to promote funding for digital infrastructure projects. The collaborative effort builds upon an earlier agreement signed in August 2023, emphasising the importance of coordination and cooperation among like-minded countries to support private sector investment in infrastructure.

By enhancing collaboration and communication, the DiGi Framework aims to create an environment conducive to investment and innovation within India’s digital landscape. That initiative signifies a strong commitment to enhancing India’s digital infrastructure, positioning the country for sustainable growth and technological advancement in an increasingly digital world.

Why does it matter?

With the support of these three nations, the framework represents a strategic move to strengthen India’s technological capabilities and improve connectivity, ultimately benefiting its economic development and resilience in the face of future challenges.

South African cloud market boosts Huawei’s regional growth

Huawei Cloud has reported substantial growth in its South African market, with demand for cloud services rising from both government and private sectors. Since becoming the first international vendor to open a ‘hyperscale’ data centre in South Africa in 2019, the company’s client base has expanded to over 1,000 businesses across sectors such as financial services, telecoms, education, and government.

Over the past five years, Huawei Cloud‘s business in South Africa has increased more than 16 times, according to Jacqueline Shi, president of Huawei Cloud Global Marketing and Sales Service. Although the current revenue figures remain modest, the company is planning to launch more cloud solutions to gain a larger market share as cloud adoption grows across the country.

South Africa’s cloud market is anticipated to grow at an annual rate of 26% from 2023 to 2028, reaching a projected value of 113 billion rand ($6 billion). The adoption of AI is also expected to drive demand for cloud services, making cloud solutions increasingly essential for local businesses, said Steven Chen, Huawei Cloud South Africa’s CEO.

Huawei is competing with Amazon, Microsoft, and Google in the South African market, already operating three data centre locations in Johannesburg. The Chinese tech giant aims to capitalise on the region’s expanding cloud market and meet the increased demand for computing and AI solutions from local companies.

Ethiopia to enhance financial inclusion via mobile services

Ethiopia is set to transform its digital economy, with projections indicating a contribution of over ETB 1.3 trillion to the GDP by 2028. Significant telecommunications reforms and increased investments in mobile technology primarily drive this transformation.

As a result, this growth is expected to create over 1 million new jobs as the digital sector expands, with major players like Ethio Telecom and Safaricom Ethiopia enhancing connectivity and fostering competition. Moreover, by 2028, more than 50 million citizens are anticipated to be connected to mobile internet, significantly boosting productivity across vital sectors such as agriculture, which could add ETB 140 billion, and manufacturing, projected to contribute ETB 114 billion.

However, despite widespread coverage, Ethiopia is confronted with a notable digital divide, as 76% of the population still does not utilise mobile internet. That situation highlights the urgent need for targeted policy reforms to increase accessibility and bridge this gap. Furthermore, mobile money services are becoming increasingly vital for financial inclusion, with 90 million registered accounts and a 70% penetration rate facilitating access to financial resources for underserved communities.

In response to these challenges, Ethiopia is taking proactive steps to accelerate its digital transformation through key policy recommendations. These recommendations include prioritising service affordability by reducing sector-specific taxes, fast-tracking telecom reforms to enhance infrastructure development, and improving device affordability by lowering taxes on mobile devices.

Strengthening regulatory support for mobile money services and investing in digital skills and e-government initiatives will further empower citizens and facilitate broader participation in the digital economy. Ultimately, these efforts aim to drive sustainable growth and development across the country.

China launches pilot programme to boost foreign investment in telecom sector

China has launched a pilot program to expand foreign investment in its value-added telecom services sector, allowing foreign companies to wholly own businesses such as internet data centres and engage in online data and transaction processing. The initiative is being implemented in four key regions – Beijing’s national demonstration zone, Shanghai’s free trade zone, the Hainan Free Trade Port, and Shenzhen’s socialist modernisation pilot zone.

The program aims to align China’s telecom sector with high-standard international economic and trade rules, improve regulatory frameworks, and reduce market barriers for foreign investors. By opening up sectors like cloud computing and computing power services, China seeks to diversify market supply, boost innovation, and foster greater integration of digital technologies across industries.

In response to this initiative, companies like HSBC are preparing to participate, with HSBC Fintech Services applying for an internet content provider permit to enhance its digital services and business transformation. The Ministry of Industry and Information Technology (MIIT) has committed to monitoring the program’s effects, possibly expanding its scope based on its success. By improving the business environment and encouraging new business models, China is positioning itself as a more attractive destination for foreign investment in the telecommunications sector.

Starlink and Reliance Jio battle for dominance in India’s satellite broadband market

The competition between Elon Musk and Mukesh Ambani is intensifying as they vie for dominance in India’s emerging satellite broadband market. After India’s government decided to allocate satellite spectrum administratively, rather than through auction, the stage is set for a fierce battle. Musk’s Starlink, which uses low-Earth orbit (LEO) satellites, is poised to enter the Indian market, while Ambani’s Reliance Jio has already partnered with Luxembourg-based SES, utilising medium-Earth orbit (MEO) satellites.

The stakes are high as satellite broadband promises to bring internet access to remote areas of India, helping to bridge the country’s digital divide. Both billionaires have taken opposing views on how the spectrum should be allocated, with Ambani pushing for an auction, while Musk argues for the administrative model, aligning with international standards. India’s telecom regulator has yet to announce spectrum pricing, but projections indicate that satellite internet could reach two million subscribers by 2025.

This rivalry underscores the vast potential of the Indian market, where nearly 40% of the population still lacks internet access. Both Musk and Ambani are vying to capture this untapped segment, but pricing will be critical, especially in a country where mobile data is among the cheapest globally. Analysts predict a price war, with Musk’s deep pockets potentially giving Starlink a competitive edge, though challenges remain due to Starlink’s higher costs compared to local providers.

Qualcomm and Google collaborate on automotive AI solutions

Qualcomm has announced a partnership with Google to create advanced AI tools for the automotive industry. This collaboration will allow automakers to develop customised voice assistants without relying on a driver’s mobile phone. Qualcomm’s expertise in chips and Google’s Android Automotive OS will be merged to provide a seamless experience for vehicle computing systems.

The Android Automotive OS, distinct from Google’s Android Auto, powers internal vehicle systems instead of simply mirroring apps from smartphones. Automakers will be able to personalise their AI voice assistants using this technology, offering features independent of phone connectivity. Qualcomm highlighted that this shift in strategy with Google aims to eliminate confusion for automakers by streamlining their services.

Qualcomm also launched two new chips designed to enhance driving experiences. The Snapdragon Cockpit Elite will focus on powering dashboards, while the Snapdragon Ride Elite will support autonomous driving systems. These innovations build on Qualcomm’s growing presence in the automotive sector, which includes partnerships with companies like General Motors.

Mercedes-Benz plans to integrate the Snapdragon Cockpit Elite chip into future models, though the exact timing and vehicle models remain undisclosed. Qualcomm continues to expand its influence in automotive technology, further positioning itself as a key player in the industry’s digital transformation.

Marvell Technology announces price increase amid rising AI demand and robust growth

Marvell Technology, a leading US chip manufacturer, has announced it will raise prices across its entire product line starting January 1, marking the first major price increase in the optical communications sector. This decision comes after Marvell’s strong financial performance last quarter, driven by the surging demand for AI-related products, including ASICs and silicon photonics for data centres. The price hike is seen as a way to capture new market opportunities and support ongoing investments in innovative technologies.

A leaked notification letter from Marvell’s Senior Vice President of Global Sales, Dean Jarnac, revealed that the global demand for AI and accelerated computing is pushing companies like Marvell to expand production capacity and invest in new manufacturing bases. Jarnac emphasised that the price increase is necessary to support these investments, but assured customers that the impact would be minimised and encouraged them to plan their orders accordingly.

Marvell’s recent growth has been fueled by booming demand in the AI space, particularly in its data centre business. Key products such as 800G PAM and 400ZR optical solutions have been central to this success. Marvell’s CEO Matt Murphy highlighted the company’s optimistic outlook, expecting continued revenue growth in the coming quarter as demand for AI and data centre solutions continues to rise.

Qualcomm brings new AI power to mobile chips

Qualcomm is integrating advanced AI technology from its laptop processors into mobile phone chips. The new Snapdragon 8 Elite chip introduces improved capabilities for generative AI, such as producing images and text.

The chip incorporates Qualcomm’s Oryon custom computing technology, originally developed by engineers who joined the company from Apple in 2021. This innovation aligns with the company’s broader effort to push AI features across various platforms.

Developers will benefit from enhanced tools that complement existing Android functionalities, allowing deeper use of the Snapdragon chip’s AI capabilities. Qualcomm aims to distinguish its approach from Google’s rapid developments in AI by offering unique technologies to app creators.

Major companies, including Samsung, Xiaomi, and Asustek, are set to integrate Qualcomm’s latest chips into their devices. This marks another step in the company’s strategy to remain a leader in mobile computing and AI solutions.

Vedomosti reports increased iPhone purchases by Russian government amid security concerns

Russian government spending on iPhones between January and September was four times higher than during the same period last year, according to Vedomosti. Security warnings and restrictions on some officials have not prevented these purchases.

The Federal Security Service (FSB) last year accused the US of using spyware to compromise thousands of iPhones. Although Apple rejected the claim, officials preparing for the 2024 presidential election were instructed to avoid iPhones over espionage concerns.

Contracts for iPhones totalled 6.9 million roubles for the first nine months of 2024, compared to 1.6 million the previous year. Despite the digital ministry banning iPhones for work purposes, officials and institutions continue to procure them.

Demand for the latest iPhone 16 remains strong, with consumers relying on grey-market imports after Apple halted direct exports due to the conflict in Ukraine. Even with higher prices, interest in Apple products across Russia shows no signs of slowing.