India's New Licensing Rules for Laptop, PC, Tablet Imports May Impact Apple, Dell

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India is imposing new licensing requirements on laptops, tablets, and personal computer imports that could impact such companies as Apple (AAPL), Dell (DELL), and Samsung.

Previously the import of computers was free, but the new regulations require a special license which would increase wait times for each new model launch. India introduced similar restrictions for TVs in 2020.

Last year, the market size of laptops in India was $5.5 billion, growing at a compound annual growth rate (CAGR) of 6.7% between 2023 and 2028. It is expected to reach $8.1 billion by 2028.

Though the government did not explain this move, Prime Minister Narendra Modi has been pushing local manufacturing under his "Make in India" plan. India has a $2.1 billion financial incentive strategy to entice hardware makers to set up a shop in the South Asian nation.

Apple manufactures roughly 7% of its global iPhone output in India though not iPads or MacBooks. From April to December last year, the tech giant exported more than $2.5 billion worth of iPhones from India, accelerating the shift away from China as geopolitical tensions rise.

Market leaders in India, Dell and HP, have a manufacturing presence of commercial computers. In India's personal computer market, HP had a 30% market share in 2022, followed by Dell at 19%. However, their production of computers and laptops in India is limited and relies on imported parts.

A source told Reuters that besides increasing local manufacturing, the government also aims to restrict imports from China owing to security concerns. Half of the items restricted are shipped from China, with whom India has border clashes. The licensing requirement will allow imports of only trusted partners.

Directorate General of Foreign Trade. "Notifcation No. 23/2023."

Reuters. "India mandates licensing for laptop, tablet imports in blow to Apple, Samsung."

Expert Market Research. "India Laptop Market Outlook."

Yahoo! finance. "India Launches $2 Billion Drive to Woo Laptop Makers Like Apple."

Bloomberg. "iPhone Exports from India Double to Surpass $2.5 Billion."

Business Today. "Tech giant Dell eyes 32% market share in commercial PC segment in the next 3 years."

Business Today. "HP's Make in India plans focused on local procurement of subcomponents."

IDC. "Despite a Decline in 4Q22, India’s PC Market Clocked a Marginal 0.3% YoY Growth in 2022, According To IDC."