The central government is planning to provide financial incentives to companies producing laptops and tablets in the country. These companies include Apple and Dell. With this, China will also be able to compete as the production base of these companies. To reduce imports, the government wants to increase the production of laptops and tablets and also make the country an export hub in the long run. The Technology Ministry has made changes to an already existing plan for this and has consulted with the executives of electronics companies on this. Have asked for suggestions. Sources with knowledge of the matter said it could include incentives worth more than $500 million per company. The scheme aims to attract Apple, Dell, HP and Asus to increase or start production in the country. The government especially wants to encourage Apple to manufacture iPads in the country. The company is already assembling iPhones in India through its Taiwanese suppliers. In a government document seen by Bloomberg News, incentives worth Rs 4,500 crore have been offered per company. However, for this, foreign companies will have to invest at least Rs 700 crore in five years in addition to the expenditure incurred till March last year. The incentives will depend on the local components procured by these companies and could be up to about 6 percent of the sales of finished products. However, this plan can be changed after consultation with the industry. Last year, a scheme worth Rs 7,350 crore was launched to increase manufacturing and exports of IT products like laptops, tablets and personal computers in the country. However, due to low incentives, these companies did not take interest in it. Apple’s new iPhone 14 will be made in India. Apple hopes to grow its business rapidly from this world’s largest smartphone market after China. The company started manufacturing in India in 2017 with the iPhone SE. It is manufacturing advanced iPhone devices including iPhone SE, iPhone 12 and iPhone 13 in India. iPhone 14 has also been added to it.
Tag: electronics
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The launch of new PCs and laptops may be affected by the spread of Corona in China.
Due to the rapid spread of Corona again in China during the last few weeks, there may be a labor shortage in many industries. This is also likely to affect the launch of new PCs and laptops. In China, the government had given some relaxation in the restrictions related to Corona. Since then the number of people infected with this virus is increasing. The problems of suppliers of companies manufacturing personal computers and laptops in China have also increased due to Corona. Many workers of some of these firms have been infected with the virus and due to this production has had to be temporarily stopped. This will cause delays in shipments, which will impact the availability of products like new laptops. Contract manufacturing firms like Compal, Inventec, Quanta and Wistron have not yet faced shortages of components or workers. Due to the inventory already available with them and the demand not being expected to be very high in the first quarter, they have not asked their suppliers to increase production. However, big companies manufacturing personal computers may face difficulties and this is likely to impact the supply of PCs. The situation in China is worsening due to increasing Corona cases. A large number of people are getting infected by the new variant of this epidemic called BF.7. The reports coming from China have shocked the whole world. The videos coming from Chinese hospitals are scary. One such video has been shared on social media, in which it can be seen that a doctor became so tired due to the workload that he collapsed on his chair. This video has been shared by ‘The Telegraph’. It can be seen that a doctor is looking at the patients present in the hospital. After this he suddenly falls on his chair and other doctors come to help him. This indicates that China’s hospitals are full of patients and the systems there have completely collapsed. Experts say that 60 percent of China’s population may get infected with Corona in the next 90 days. -
Lenovo suffered a big blow due to decline in PC sales, 24 percent decline in revenue.
China’s Lenovo has suffered a major setback due to the decline in demand for personal computers (PC). The company’s revenue declined by 24 percent in the June quarter. The world’s largest PC maker is facing decline in sales for four consecutive quarters. The company’s profit was 14 percent less in the last financial year. Lenovo’s revenue in the June quarter was $12.9 billion. After this the share price of the company has decreased by six percent. There was a significant increase in electronics sales during Corona as customers and companies purchased a large number of PCs to shift to remote work. However, last year the company’s revenue started declining due to decrease in demand due to increase in interest rates and increase in inflation. The pace of recovery in PC demand is weak and many retailers are left with unsold inventory. This has forced PC makers and their suppliers to adjust production volumes and rates. There was a 29 percent decline in global shipments of PC in the first quarter of this year. Due to this, American company Apple, which manufactures Mac computers, suffered a big loss. Market research firm IDC reported that global shipments of PC declined to 5.69 crore units in the first quarter. It was Rs 8.02 crore in the same period last year. In the last quarter of last year, these shipments had declined by 28.1 percent on a year-on-year basis. Apple’s shipments declined the most in the first quarter by about 40.5 percent. The decline in shipments for Dell was 31 percent. Apart from this, Lenovo, Asustek Computer and HP also faced decline in shipments in the first quarter. Apple had said that sales of its Mac computers had increased rapidly during the pandemic due to work from home. There has been a 29 percent decline in value terms in the first quarter on a year-on-year basis. IDC had said, “The decline in demand has given device makers an opportunity to make changes in the supply chain. Many companies are exploring the possibility of increasing production outside China.” There is a possibility of slowdown in the economies of big countries. Financial crisis in some big banks and increase in inflation may hamper growth and investment.