Sometimes, arch-rivals in the tech sector may agree on some strategic moves. That is the case with Samsung and Apple. The technology behemoths, often locking horns in Indian and global markets have both chosen to stay away from the PLI scheme of the govt of India. The much-touted production-linked incentive scheme for IT hardware has found traction among a majority of technology brands including Lenovo, HP, Dell etc. Apple and Samsung have chosen to look at the opposite direction though.
As per industry analysts, the technology giants have not embraced the PLI scheme despite high decibel endorsement by the Indian govt owing to the relatively small market size in India. While India is a booming market for smartphones, the same cannot be said about laptops and PCs. Both Apple and Samsung are keener on focusing on their smartphone operations. As it is, both are doing reasonably well in the smartphone segment. That explains why Samsung and Apple are not shifting their PC production base from Vietnam and China respectively to Indian shores.
The thawing of the diplomatic relationship between China and India has also played a role in this decision. Following the Indo-China border disputes that started in 2020, the Indian govt has not allowed many high-profile Chinese investments. BYD Electronic International, Apple’s contract manufacturer for Macbook and iPad lineups was denied assembly line setting up in India. Industry insiders also think both companies are skeptical about contract manufacturers being able to match their quality standards. However, these giants may explore PLI beneficiary tie-up options.