Electronics manufacturing takes wing: Apple
In August 2023, a sudden announcement of the ban on imports of laptops, all-in-one personal computers, and tablets created a lot of uproar among the electronic manufacturers worldwide.
NEW DELHI: The US tech giant Apple made all the ‘right’ news in India in 2023. It opened its first two retail stores and increased its production, thereby becoming the top smartphone exporter in India. It reported an all-time revenue record in India. During the earnings call, Apple’s CEO Tim Cook stated the company achieved an all-time revenue record in the country for the September 2023 quarter.
“We experienced strong double-digit growth. We have a low market share in a large market, so there seems to be a lot of headroom for expansion. I haven’t looked at average selling prices (ASPs) recently, but I’m sure they’re lower than the worldwide average,” said Cook.
Apple, which currently holds only a 5% market share, is experiencing significant growth in India. As per Counterpoint Research, Apple shipped a record-breaking 2.5 million units in India for the period of July to September 2023, marking a 34% year-on-year (YoY) growth. iPhone revenue reached $43.8 billion, up 3% YoY and setting a new record for the September 2023 quarter from India. In April 2023, Apple opened two stores in Mumbai and Delhi.
Restriction on import of laptop
In August 2023, a sudden announcement of the ban on imports of laptops, all-in-one personal computers, and tablets created a lot of uproar among the electronic manufacturers worldwide. However, later the government clarified that there was no ban just registration would be enough to import these items. However, many big tech companies raised concerns about this decision.
According to Counterpoint Research, India’s laptop and personal computer market is worth $8 billion annually, with two-thirds of those being imported. In short, they can’t start manufacturing in India in such a short span.
One positive aspect of the decision was that it prompted big tech firms to apply for the revised Rs 17,000 crore PLI scheme for IT hardware announced by the government in May 2023. The scheme received an overwhelming response, with 44 companies, including HP, Dell, Lenovo, Thompson, Acer, and Asus, applying for it.
Electronics manufacturing
Tata Electronics, fourth contract manufacturer and the first Indian company to assemble iPhone with the acquisition of Wistron’s facility near Bengaluru is another big development. There are reports about its plans to open a mega facility at Hosur for the iPhone assembly, though it is not confirmed.
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