the Indian government recently announced that enterprises need to apply for licenses in advance to restrict the import of personal computers, including laptops and tablets, and the relevant measures are expected to take effect from November 1. What impact will this have on global electronics companies and the local Indian market?
Analysis pointed out that India's move is mainly to boost its electronics manufacturing industry and reduce import dependence.
According to data Counterpoint by global analysis company, about 65% of personal computer products such as laptops in India rely on imports. Of these imports, China accounts for a large proportion. From 2022 to 2023, China will account for about 76.9 percent of India's imports of various personal computer products.
After the restriction order was issued, the share prices of Indian electronics companies rose sharply. After the restraining order was issued, Dixon Technology rose about 8% on the day.
By combing India's electronics market share, to see in detail which companies may be hit.
According to data from analytics firm Canalys, this chart shows the top five companies in the desktop and laptop market in 2022. Among them, HP ranked first with 31.6 per cent of the market, Lenovo in second place accounted for 19.8 per cent of the market, and Dell in third place accounted for 14.3 per cent. In the tablet market, the top three are still multinational companies, including Samsung, Apple and Lenovo. Lava ranked No. 4 is Indian Enterprise.
electronics giants also reacted to the ban. According to Bloomberg, Apple, Samsung and Hewlett-Packard and other companies have suspended exports to India PC.
analysis also pointed out that in the Indian personal computer market, the launch of new products may be significantly later than the international market. It should also be noted that the autumn semester is about to begin, and in addition, India will also welcome Diwali in October, which is usually the peak sales season. The latest restrictions could lead to a tight supply of PC products and may even lead to short-term price increases.
, in fact, in May this year, the Indian government introduced an incentive plan of about $2 billion, hoping to replicate the successful experience of the mobile phone industry and attract more computer manufacturers to settle in India for production, but there was no interest at that time. Today, the restrictions further reflect India's desire to play an important role in the global electronics supply chain. India wants to make $300 billion billion in electronics by 2026.
Source: Ningbo Shipping