Sales spiked by up to 25% last weekend sequentially over the previous weekend, retailers and brands said.
Online platforms such as Amazon running its Independence Day sales saw a surge in laptop sales following the government announcement, industry executives said. The sales momentum is continuing even on Monday, they said.
The government said on Thursday that a licence will be needed for import of laptops, tablets, all-in-one-personal computers, ultra-small factor computers and servers. Shipments of these products can be cleared without a licence until October 31.
This has triggered concerns that supplies may dwindle November onwards. Social media may also have contributed to the frantic buying with posts warning of shortages and price hikes.Leading electronics retail chain Vijay Sales’ director Nilesh Gupta said fear of both price increases and shortages due to the licensing requirement has seen sales shoot up in the last two days. He said sales are up 20% this weekend over last. A Xiaomi India spokesperson said there has been a rise in demand for tablets in the last few days.The chief executive of a leading computer and tablet manufacturer who didn’t wish to be named said the announcement by the government catalysed the back-to-college sales that usually happen around this time.
Some others considering festive season purchases may have advanced their plans.
The Centre has tried to calm concerns saying there will be no delays in giving licences and permits for imports once the regime begins and the move should have no effect on product prices.
Around 30-35% of the laptops and tablets sold locally are assembled in India currently.
India imported IT hardware products worth $8.8 billion in FY23, with China accounting for more than half at $5.1 billion, followed by $1.3 billion from Singapore.
Great Eastern Retail director Pulkit Baid there was a 15-20% rise in laptop inquiries after the recent regulatory announcements. “We feel these are temporary spikes of consumers coming in early before the Independence Day sales,” he said. The retailer operates 88 stores in the east and north.
Amazon and Flipkart did not respond to email queries.
A senior executive of another leading computer maker said the measure should not have an impact on pricing unless the government makes it difficult to get licences and companies are forced to scale up local production instantly.
The government has sweetened the production-linked incentive (PLI) scheme for IT hardware, but local output may take time to rise due to the lack of a component ecosystem in India, he said. These products may also be costlier compared with the imports despite the benefits.
Companies can apply for the PLI scheme this month.
As per the latest data by market researcher International Data Corporation (IDC), the personal computer market in India declined by 30% year-on-year in the January-March period, continuing the trend of sluggish demand over the last few quarters.
Laptop sales saw a steeper decline at over 40% in the period under review. Demand for tablets is also languishing after these categories, including smartphones, received a massive boost during the peak of the Covid pandemic.
