Photo by freestocks on Unsplash
India's computer market is projected to expand at an annual rate of 5.1% increase over the next five years, according to a report by S&P Global Market Intelligence. This growth is primarily driven by a 10.8% increase in laptop imports year-over-year with Apple leading these shipments.
Growth of Laptop Assembly
As laptop assembly operations grow within India, there may also be a rise in component imports. Notably, mainland China and Hong Kong are significant sources of these components excluding semiconductors.
Government Incentives
The report suggests that this trend could prompt the Indian government to encourage local manufacturing of components and assembly processes by aiming to boost the domestic electronics industry and reduce reliance on imports.
India's Future Policies on Laptop Imports and Domestic Manufacturing Growth: Potential Reintroduction in 2025
According to insights from a market intelligence firm, India might reintroduce regulations to control laptop imports as early as 2025. This move would follow an earlier decision in 2023, where the country relaxed such restrictions which is likely to support market stability and allow manufacturers to adjust. By reinstating these import limits, India may aim to encourage local production by reducing dependency on imported devices.
Boosting Domestic Production with Incentives
In addition to possible import controls, India is considering a range of other policies to foster its manufacturing sector. One prominent approach could be the implementation of production-linked incentives (PLIs). These incentives are designed to encourage both local and international companies to set up manufacturing facilities within India. Such incentives make production within the country more financially practical by creating a favourable environment for companies to shift operations locally.
A Low-Risk Environment for Investment
The firm’s report highlighted that in recent years, India’s regulatory environment has become more stable and less risky compared to many of its peers. This stability is crucial for companies to evaluate options for their production activities. With reduced regulatory risks, India presents itself as a more attractive destination for manufacturers looking to relocate or expand their operations outside of other high-risk regions.
A Growing Electronics Manufacturing Hub
India is gradually positioning itself as a global hub for electronics manufacturing. The country has shown significant growth in producing electronics, particularly in the smartphone and laptop sectors. This development is a strategic shift as India seeks to reduce its reliance on imports while establishing itself as a critical player in the global electronics supply chain.
HP Inc. Dominates the PC Market
HP Inc. has firmly established itself as a leader in the personal computer market by achieving impressive shares of 33.5% in the commercial segment and 29.7% in the consumer sector. The company's success is particularly notable in the notebook category, where it holds a significant 34.4% market share. This growth can be attributed to a surge in demand for consumer notebooks alongside the successful fulfillment of several important orders from enterprise clients.
Lenovo's Steady Growth
Following HP, Lenovo ranks second in the market by showing substantial growth across both consumer and commercial segments. Year-over-year, Lenovo's shipments increased by 32.7% in the consumer sector and by 6.3% in commercial sales. The company has excelled particularly well in the small and medium-sized business (SMB) segment with a notable growth rate of 16.5%. This success is largely due to strong demand through online retail channels and a strategic focus on offering a diverse range of AMD-powered devices.
Dell Technologies Faces Challenges
Dell Technologies occupies the third position but has encountered difficulties, especially in the commercial desktop category which saw a decline of 15.9% year-over-year due to intense pricing competition from other companies targeting government and enterprise contracts. Despite these challenges, Dell experienced a 6.4% growth in its consumer segment, thanks to a successful back-to-school and college marketing campaign that resonated well with customers, particularly through offline sales channels.
Acer Group's Remarkable Growth
Acer Group ranks fourth but has achieved an impressive year-over-year growth rate of 38.3% in the second quarter of 2024. The company leads the desktop category with a market share of 27.6%. Acer's strong performance can be attributed to its ability to fulfill key orders from government sectors and the banking, financial services, and insurance (BFSI) industry. Additionally, Acer's aggressive marketing strategies during online sales events have boosted its presence in the consumer market.
Asus's Emerging Presence
Asus holds the fifth position with a modest year-over-year growth of 5.4%. Although starting from a smaller base, Asus has recorded an astonishing growth of 131.7% in its commercial segment; indicating a strong upward trend. The company’s increasing focus on expanding its presence in the commercial sector and enhancing its offline distribution channels has significantly contributed to its improved performance.
. . .
References: