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India Tablet Market (Q1, 2013)

Posted in Industry updates by Manas Ganguly on June 5, 2013

The inexorable march of the Tablet category is pretty much in place – even while the 5.7″, 6″,5.3″ form factors are gaining ground and acceptance in India. The Indian tablet market is set to double up from its 2012 numbers.

Q1, 2013 registered 905K tablets sold in India which was a 159% YoY increase from the Q1, 2012 figures. While this number was 21% less than Q4,2012 – that is explained by the seasonality of the purchase. The Indian Tablet markets pick has been faster in second halves owing to lot of factors.

Tablets Q1, 2013

These numbers are reported by CMR. As many as 59 domestic and international OEMs shipped their tablet PCs to India and led to a fragmented market with only 9 vendors beyond 20K tablet sales. However Indian consumers showed no bias towards International brands – as Datawind took the top honours with 15.3% of the market edging out Micromax at 12.3% Apple’s iPad mini enabled a come back to No.3 position with 11.3% market shares.

Leader Board

The leaderboard points to a sort of 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.

To round of this analysis, there are these three trends that would drive the adoption of the tablet segment in consumers as well as enterprises in the days to come
1. While 3G data enabled tablets contribute only 28% of the Total Indian tablet markets, it is expected that this segment will see some serious action and expansion in days to come with the possible launch of low cost 3G SOC solutions by MTK.2. 2013-14 being the election year, one would see a lot of government doles in terms of tablet devices.
3. Also, one of the other trends that i am betting to see a lot more is the customization of tablets for specific industrial segments as we will see tablets featuring more on the Enterprise BYOD space.
4. Solutions such as Vernacular based solutions, Micro finance/Micro Credit/Financial Inclusion, Insurance industry solutions, Healthcare/patient record/ Patient history digitizations apps, Agrarian and Retail Point of Sale Applications will be key to segment growth in the coming days.

Is MTK set to disrupt the India/SE Asia Tablet markets?

Posted in Industry updates by Manas Ganguly on June 2, 2013

Mediatek (MTK) is a Taiwaneese semi conductor maker with revenues worth $3.4bln in 2012. In the semiconductor industry, that number is a modest one, and MTK’s market share is only 1.1% of the global semiconductor sales (Source- iSuppli).


However, MTK has a few disruptions to its credit. Starting 2007 onwards, MTK’s chipsets engendered billions of low cost mobile devices at around half the price of the existing industry standards at that point of time. This provided a significant fillip the telecom industry as it lowered the cost of entry and initial cost of hardware acquisition for a first time buyer. It also was instrumental in replacement sales where in feature categories were available at lower price points thereby getting people to migrate from their existing handsets to a better feature set at a price equal or lower to the existing price of the handsets. It spawned companies such as Micromax, Lava and Karbonn.

In 2012, yet another Taiwanese chipset maker – Allwinner disrupted the tablet market by providing chipsets for WiFi enabled Tablets. This enabled a spate of low end tablets for the first time tablet buyer. Tablet category was till then defined by the likes of Apple and Samsung. Allwinner with Android truely liberated the category of tablets for the first time buyer. What resulted was a major market disruption where in the markets shifted from the majors to low cost- value oriented minors. At the last count, such tablets sold 2.2mln units – out of the 3mln tablet market in India.

In 2013, MTK now endeavours to disrupt the low end tablet space with low cost 3G chipsets – at a differential of $2-3 over the Allwinner WiFi chipsets. That would translate to Rs.150-200 difference in end consumer price for a 3G tablet over the WiFi tablet. One can expect that with the pricing gap squeezed to Rs.150/200, buyers of WiFi tablets could make the jump to the 3G tablets for the inherent advantage – Portability. There – thats the disruption that i am talking about. A Rs.5000-6000 3G tablet. Introduction of low-end 3G tablets and smart devices and the natural price decline curve – will shift demand, supporting uptake among new, less affluent customer segments

What could that do? The way i look at it – there are a few sectors in India that could immediately benefit from low cost 3G tablets – Education, Insurance, Healthcare, G2C payments, UIDAI based transactions and Financial Inclusion, Enterprise and Businesses. Slowly but surely, a lot of drivers are getting together to push the tipping point for tablets and smart devices.
1. Pricing Advantage (Will fuel 60% acquisitions)
2. Affordability in 3G Mobility
3. Business and Bring Your Own Device (BYOD) (Will fuel 4% adoption)
4. Platform maturity and Applications
5. Vernacular matures as a platform
6. Government push on Tablets as a segment to connect the unconnected- Election Year!

While initial estimates point at 6 mln units sales of tablets in India in 2013 – the number might have a groundswell driven by the numerous government programmes – and the MTK advantage would be key to deliver services remotely on these devices.

Infographic: India Tablet Market (CY 2012)

Posted in Device Platforms, Industry updates by Manas Ganguly on March 25, 2013

The infographic below captures the market dynamics of the India Tablet markets in 2012. Tablets Zoomed, Phablets emerged as a segment and there was a change in leadership ranking order in offing. (Click to enlarge the Infographic)

Tablet 2012 Infographic

Source: CMR

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