Samsung, Apple not applying to PLI 2.0 for IT hardware

Even as 40 companies including the likes of HP, Dell, Lenovo, etc, have applied for the revised IT Hardware production-linked incentive scheme, it is reported that Apple and Samsung decided to give it a miss for the second time. The key reason for the two tech giants skipping the scheme is the small market size India offers when it comes to laptops and personal computers. Further, laptops and PCs comprise a small part of the overall portfolio of these companies.

The laptop and PC demand in India makes up only 2.4 percent of the global demand whereas Smartphones have huge demand. Moreover, for Apple and Samsung, laptops and smartphones are the primary focus. So, it doesn't make financial sense for them to shift their production from countries like China and Vietnam to India.   

For example, Apple's revenue primarily comes from iPhones, with Macs and iPads contributing significantly less. Therefore, it makes more sense for Apple to focus on smartphone production in India and continue manufacturing Macs in other locations. Samsung, on the other hand, faces issues related to discrepancies in government invoices, which may be a reason for their non-participation.

According to industry experts, due to small market size, setting up multiple manufacturing facilities in India for laptops and PCs would not be economically feasible.

They suggest that Apple and Samsung could consider partnerships with companies that benefit from the PLI scheme. This way, they can still take advantage of some cost benefits offered by the scheme.

The IT Hardware production-linked incentive (PLI) scheme, aims to encourage companies to manufacture their products in India. The PLI 2.0 scheme covers various tech products, including laptops, tablets, all-in-one PCs, servers, and ultra-small form factor devices. While many companies have applied for it, the oversubscription of the scheme means that the government received more applications than it initially budgeted for.