Shares of tech giant Apple (NASDAQ:AAPL) are under pressure today after India stopped the import of laptops, tablets, and servers without a license.
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Consequently, Apple along with other major names including HP (NYSE:HPQ) and Samsung, is halting new imports to the country, which is a major market for electronic goods. While the Directorate General of Foreign Trade in India has provided certain exemptions for up to 20 items for consignments used for R&D, product development, etc. the Indian Government is aiming to boost local manufacturing for electronic products under its PLI (production linked incentive) scheme.
Moreover, the licensing requirement is possibly aimed at reigning in the import of such products from China and South Korea as well. While in the short term, the licensing move could lead to higher prices domestically, it could mean a significant chunk of IT hardware manufacturing potentially moving to India over the coming years.
Overall, the Street has a $204.58 consensus price target on Apple alongside a Strong Buy consensus rating. Shares of the company have gained nearly 24% over the past six months.
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