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Date: 31-07-13

Tablets growing at 424% in India and eating off PC market

In India, the majority of people use PCs for email communication, net surfing, gaming and some word-processing. To do this, you don't need a desktop or a notebook computer, particularly when you have a tablet computer with processing-power supporting above said PC tasks.

Tablet computers are much cheaper than even netbooks, the low-cost version of notebooks. The cheaper tablets which comes in the price-range of Rs 5000 to 8000 are loaded mostly with Android operating system . Since Android is a free software, the user don't need to bother to pay any money for the software. All these benefits of a tablet computer making ordinary Indian to buy a tablet instead of desktop computer. Manufacturers Association of Information Technology (MAIT), India's leading trade body representing electronics industry has released its latest findings on the Indian PC and tablet market. MAIT has done the market survey in collaboration with IMRB, a leading market research film in India.

Below are the findings shared by MAIT:
The total PC sales from April 2012 to March 2013 is estimated at 11.30 million units, a growth of 5% compared to the same period a year ago. The PC here includes desktop computers notebook/laptop's and the netbooks.

The desktop computers are still the number one by volume, the sale of desktops for the period of April 2012 to March 2013 is estimated at 6.77 millions units, an annual growth of just 1%. Whereas the portable computers which includes notebooks and netbooks have recorded a sales of 4.41 million units, a growth of 10% over last year.

MAIT forecasts PC sales to grow at 8% for the year 2013 to 2014 .
As expected the tablet sales have grown by 424% where the total tablets sold in the period April 2012 to March 2013 crossed 1 million units.

Commenting on the industry performance, Mr. J V Ramamurthy, President, MAIT, said, “The overall IT Hardware Industry scenario seems to be on a conservative side with most of the markets posting either a muted growth or decline. The year 2012-13 has been the year for Tablet PC with consumers preferring Tablet over PC as their replacement. The combination of basic functioning of a PC coupled with affordability is turning the tide favourably towards Tablet PC. That said, the SEC C Households which made a significant contribution last year for PC continues to put on a strong show registering an impressive growth of 67%. The industry is hopeful that the overall PC sales for 2013-14 will reach around 12.11 million units, registering a modest growth of 8%.

While Mr. Anwar Shirpurwala, Executive Director, MAIT said, “The overall growth of the Tablet industry is impressive, however, the decline in the growth of PC is a matter of concern which is growing by only 5% but it is also a reality. The growth of PC industry is crucial, as the country still has very low PC penetration.”
The other findings shared by MA IT includes:
The Notebook Market:

The Notebook sales posted a muted growth rate of 10% this fiscal compared to 22% rate in the last year. This growth was driven by House-Hold (HH) segment that accounted for about 61% of the total Notebook sales and registered a growth of 14% during 2012-13 over the previous year.

‘SEC C’ continues to gain its stronghold in Notebook segment contributing around 29% of the notebook sales and posting a growth of 90% over last year. SEC A and B consumers seem to have restricted the purchase as they recorded a growth of 1% and 5% respectively over the last year.

Notebook sales among Establishments during 2012-13 ended with a rise of 3%.The growth is mainly accounted by Government sector that recorded a rate of 38% over last year.

Netbook sales stood at 0.96 lakh unit; the market has gone for a major decline of 68% over the previous year. The decline is underlined by both the HH and Business segments showing a negative growth of 74% and 64% respectively over previous year.

The Desktop Market:

The Desktop market is driven only by HH segment as it grew at 14% over previous year. Household contribution to the Desktop market has increased from 53% in 2011-12 to 59% in 2012-13.

The Businesses sector posted a negative growth of 13% over previous year mainly because of steep decline in large enterprises and a declined growth of 53% over last year. However, SMB regained its composure and posted a positive growth of 49%.

The top four metros, accounted around 28% of the total desktops purchased and the Class B cities accounted for 12% of the market. Consumption in top four metros went up by 3%, while in Class B cities it was a 5% decline. In smaller cities, the only positive growth driver posted a growth of 9% with contribution increasing from 59% to 60%.

The Tablet Market:

Tablet PC witnessed a massive growth figure of 424%. The sales for 2012-13 stood at 1.9 million units as against 0.36 million units in 2011-12.

The Servers Market:

During the year 2012-13, server sales registered a decline of 2% over the last financial year and it stood at 89,075 units in the current year.

The Peripherals Market:

Overall printer sales continued to decline albeit marginally at a rate of 1% during 2012-13 over the last fiscal year. The sales at 2012-13 stood at 2.93 million (29.3 lakh) units.

Among printers, Laserjet printer is the only segment where sales grew positively and the growth rate was around 14% over last fiscal year. The consumption went to 1.57 million units from 1.38 million (13.8 lakh) units.

Inkjet printer sales continued its downward spiral with a negative growth of 9% over last year. The sales figure stood at 10.83 million (108.3 lakh)owing to the decline of HH segment at 11% over last year. The establishment segments fell by 2%.

Dot-matrix printer sales took a free fall as it posted a negative growth of 31% over last year. The sales figures cut short to 0.27 million (2.7 lakh) units in 2012-13 from 0.39 million (3.9 lakh) units in 2011-12.The UPS market sold at 2.53 million (25.3 lakh), at a decline of 1%. The decelerated growth in establishment segment was the main reason as it slipped at 16% over last year. The HH segment grew by 4% in the same period.

The Internet Entities:

The number of active Internet entities posted 17.6 million in March 2013, growth of 11% over March 2012.

Internet penetration in the 22 cities was 65% among businesses and 35% among households.

Dial up contributed around 38% of the total internet connections in establishments as broadband contribution stood at 22%. The other mode of connections such as Leased lines and Data card contribution stood at 20% and 17% respectively.

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