Daily Management Review

India's Limitation On The Import Of Laptops And PCs Could Harm Apple And Samsung


India's Limitation On The Import Of Laptops And PCs Could Harm Apple And Samsung
In one of the biggest marketplaces for consumer electronics, India placed restrictions on the importation of personal computers and tablets, citing security concerns and the need to increase domestic manufacturing. This action may have an impact on Samsung and Apple hardware sales.
A government notice released on Thursday lists a few goods, including laptops and tablets, that will need a licence to be imported into India.
India's information technology minister, Rajeev Chandrasekhar, provided an explanation for the development on Friday, pointing out that his nation has one of the fastest-rising digital product markets in the world.
Chandrasekhar stated that the government wants to guarantee "trusted" hardware and systems, lessen reliance on imports, and enhance domestic production of these goods in a post on social media platform X, formerly known as Twitter.
Theoretically, in order to import goods like laptops and tablets into India, businesses like Apple, Samsung, and HP will need licences.
Inquiries from CNBC for comment were not answered by Apple or Samsung. According to people familiar with the situation, Bloomberg had earlier on Thursday reported that Apple, Samsung, and HP were among the corporations that had frozen shipments of prohibited goods into India.
The action is being taken as New Delhi seeks to establish itself as a high-tech manufacturing hub for everything from semiconductors to consumer goods.
The government has tried to entice the biggest technological corporations in the world with incentives.
For its most recent iPhones, Apple has already moved some manufacture to India. This week, Foxconn, Apple's primary iPhone assembler, revealed a $600 million investment in India for a phone manufacturing project and separate semiconductor equipment factory.
According to Tarun Pathak, an analyst at Counterpoint Research, the licencing trend may result in price rises for some goods before the beginning of November, when India celebrates the festival of Diwali.
According to Pathak, the festival season during the month of Diwali is responsible for one-fifth of the annual sales of the products that are subject to the most recent restrictions.
“The recent restrictions on imports may lead to short-term price increases and a supply crunch for some key brands relying mostly on imports. Assembling locally or even obtaining licenses for such brands will take time,” Pathak told CNBC.
“With the festive season approaching, there might be some disruptions in offers and discounts as well and those couldn’t be as aggressive as last year due to possible demand and supply mismatches.”