State of PC market in India _ June 2013

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PC market in India


Overall PC market trends

• The overall India PC shipments for Q1 2013 stood at 2.71 million units i.e. a year-on-year growth of roughly 3% over Q1 2012 and a quarter-on-quarter growth of about 7.5% over Q4 2012.

• The commercial PC market quarter-on-quarter growth in the commercial spending is12.8% over Q4 2012.

• The branded desktops witnessed execution of a few large deals, primarily in BFSI, IT and Government verticals, supporting the overall commercial growth in Q1 2013.

• However, the consumer market remained largely flat with a marginal quarter-on-quarter growth of 1.5% noted over Q4 2012.


Vendor Share - India Overall PC Market, Q1 2013 (% of Shipments)

Hewlett-Packard 22.5

Acer 13.8

Dell 13.8

Lenovo 11.7

Others 38.2Total 100

Source: IDC Quarterly PC Tracker, Q1 2013

• HP picked up key wins and witnessed the execution of large deals in Government and BFSI verticals in Q1

• the vendor picked up the special deal on laptops in the state of UP, which cemented its position for the top spot

• Acer remains strong in the commercial business while Dell was seen riding high on its price cuts, specially on notebooks

• Dell bounced back on the commercial business too, owing to a mix of their price aggression, after-sales support and product quality

Overall PC market trends (cont.)


Smartphone market in India


Burgeoning smartphone market in India

• Overall mobile phone market in India has reached approximately 218 million units, a 16% Y-o-Y growth from CY 2011

• This is mostly driven by the burgeoning smartphone market in India which grew from close to 11 million units in CY 2011 to 16.3 million units in CY 2012, a considerable growth of about 48%.

• This market is expected to continue its growth into 2013, driven by the stupendous growth of close to 70% in the smartphone market.

Source: IDC Asia/Pacific Mobile Phone Tracker 2009-2012


Decline in feature phone segment

• India smartphone shipments reached a record high with a total of 5.4 mn unit shipments in 2012

• Q4 smartphones shipped to India grew 38% Q-o-Q

• 5% decline that was seen in the feature phone segment during the same period

2012 Q1 2012 Q2 2012 Q3 2012 Q486%88%90%92%94%96%98%

100%

92.8% 93.2% 93.5%90.9%

7.2% 6.8% 6.5%9.1%

Feature Phones vs Smartphones - CY 2012

Feature Phone Smartphone

Source: IDC Asia/Pacific Mobile Phone Tracker Q1 2012 – Q4 2012


Trends in the smartphone sector

• Local vendors ramped up shipments and aggressively launched new models to meet the growing consumer demand in the low-end smartphone market segment

• Local vendors have remained dominant in sub-US $100 price band while they pose serious competition to the global vendors in the US$100-US$200 price band

• These two segments emerged as the most vibrant and the fastest growing smartphone price band segments in the Indian market

• Smartphones with upgraded specifications, such as a 4-inch+ screen size and dual-core processors, were especially becoming popular


Trends in the smartphone sector (cont.)

• Android continued its dominance in the Indian smartphone market, however increased pick up of other operating systems – such as iOS and Windows Phone 8 is expected to spice things moving forward

• Apple's India shipments saw a sudden surge this quarter, sending it to the second spot in terms of revenue in the overall Smartphone market.


Top Five India Smartphone Vendor Ranked by Unit Shipments, 2012 Q4

1. Samsung remained the leader and pace-setter for the market, inspiring both international and domestic vendors to launch their own quad-core and 5-inch+ screen size models.

2. Micromax outperformed the market through its aggressive ramp-up and an enhanced product portfolio and new launches in the past quarter.

3. Sony garnered a significant shipment share owing to its mid-tier range of smartphones (priced between $150-300) doing quite well in the market.

4. Nokia, came in fourth with its range of Lumia devices powered by Windows Phone 8 OS, again in the mid range segment, which drew noteworthy attention from consumers especially in the Tier 1 cities.

5. Karbonn, made it to the top 5 for the first time, thanks to the new range of attractively priced smartphones that were launched in 2012 Q4


Tablets market in India


Trends in the tablets market

• India ships 10,000 Tablets every day to notch up total shipments of 905,000 during January-March 2013

• Datawind leads the market, with Micromax and Apple coming in at #2 and #3 respectively; Top 5 vendors make up nearly 59% of Tablet shipments


Trends in the tablets market (cont.)

• Indian consumer has no bias against domestic brands; only Apple amongst international brands figures in Top 3 vendors during the quarter

• A large proportion of first time users of computers in emerging markets like India are getting to experience computing through this highly portable, converged form factor.

• Polarization of India Tablet user segments – one set looks primarily for performance and best-in-class build quality and typically opts for the high-end Apple iPad, while the other segment looks for a wide range of features at an affordable price point and opts for brands like Datawind and Micromax.

• 3G-enabled Tablets made up only 23% of total sales during 1Q CY 2013, we expect this to grow substantially in the coming quarters.


India ICT 2013 Top 10 Predictions: IDC


Predictions

• Multi-device era to dictate IT for a cross-platform support

• Channel partner ecosystem will see a sizable rethinking to survive the blitz of Large format Resellers and e-tailers

• Continued interest by IT vendors to target T2 and T3 cities is driving maturity and it in turn is driving more complex solution needs

• Telecomm providers will increasingly focus on customized data plans based on usage pattern analysis

• Enterprise applications and business processes will be moving on to the cloud with ability to link devices and users as needed


Predictions (cont.)

• Business analytics will continue to be in the lime-light and past and present investments of organizations will see greater interest level by business users

• IT infrastructure management to start moving away from specialist management tools to integrated infrastructure management

• Many enterprises that have been holding back on hardware and software investments will partially reopen their purse strings

• Focus on Mid-market segment will become mainstream discussion with most large vendors (hardware, software, and client devices) making sizable investments to drive the mindshare

• The interest in IP voice infrastructure and embedding IP voice into applications will drive need to clarify associated regulatory aspects


Karan BhujbalTwitter: @karanbhujbalBlog: bhujbalview.blogspot.inEmail: [email protected]

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State of PC market in India _ June 2013

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