Laptop and Tablet sales spike due to import restrictions

8 Aug 2023 , 11:50 AM

In response to worries about shortages and price rises caused by the government’s plan to restrict their unrestricted import, laptops and tablets are flying off the shelves and e-commerce sites.

Retailers and brands reported that last weekend’s sales increased sequentially over the weekend before by up to 25%.

Following the government announcement, online retailers offering Independence day deals, including Amazon, experienced a spike in laptop sales, according to news reports. They said that the sales momentum was still present on Monday.

A permit will be required for the importation of servers, laptops, tablets, all-in-one computers, and ultra-small form factor computers. Up to October 31st, shipments of these products can be cleared without a licence.

This has led to worries that supplies would run out starting in November. Social media posts announcing shortages and price increases may also have fueled the frenzy of shopping.

Others who were thinking about making holiday shopping may have planned ahead.

The Centre has made an effort to allay fears by assuring people that once the new regime is in place, there won’t be any delays in granting import licences and permits, and that there shouldn’t be any impact on product costs.

Currently, between 30% and 35% of the computers and tablets marketed locally are made in India.

In FY23, India imported IT gear worth $8.8 billion, with China accounting for more than half of that amount ($5.1 billion), followed by Singapore ($1.3 billion).

According to the most recent figures from market analyst International Data Corporation (IDC), the personal computer market in India shrank 30% year over year between January and March, continuing a recent trend of weak demand.

Over 40% fewer laptops were sold throughout the studied period, which was a greater fall. After several categories, including smartphones, experienced a significant increase in demand during the height of the Covid epidemic, demand for tablets is now waning.

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