Smaller Brands Pushing India's Tablet Growth
While the tablet market in India remained less upbeat in the first half of the year, it is gaining momentum yet again for the rest of the year and beyond. The new trend is that local and smaller players in the market are outdoing their larger counterparts, both in terms of sales and revenues.
According to IDC, iBall is the new tablet market leader in India, followed Datawind in third position, Micromax the fourth largest tablet vendor. Samsung still remains at number 2 with stiff competition from iBall which has a tablet market share of 14.9 percent against Samsung with 13.8 percent, Datawind with 13.5 percent, Micromax with 12 percent and Xiaomi with 9.5 percent. Apple is out of the top 5 list this quarter.
iBall benefited from its strong presence in entry level tablets i.e. sub $100 and expansion of retail and geographical reach, said IDC in a statement.
Samsung, the number one smartphone brand in India, dropped to second spot in the local tablet market in Q2 2015 despite posting a healthy double digit growth over previous quarter. Inventory issues in some of their top selling models restricted the overall performance for this brand in Q2, said the telecom analysis report on Wednesday.
Datawind stands at a close 3rd place after Samsung with vendor share of 13.5%. Tele-sales continues to be a key mode of channel for Datawind as it continues to capitalize on TV penetration in the country to push volumes in smaller cities and towns.
In Q2 2015, India tablet market rose 22 percent to 1.04 million unit — mainly due to BIS certifications deadline on power adapters.
Demand in the commercial segment increased 12.4 percent in Q2 2015 against Q1 2015, while the volumes doubled against the same period a year ago.
“However, for tablet market to grow further, consumer demand is vital which is losing sheen as tablet as a category is suffering to justify its use case existence between larger smartphones and notebook PCs,” said Karthik J, senior market analyst of IDC India.
Due to BIS regulation, IDC is expecting lesser tablet shipments in Q3 2015. On a yearly basis, IDC expects the Indian tablet space to post a higher single digit growth in 2015. Consumer market outlook appears to be stagnant but commercial segment is anticipated to witness growth especially through government and education projects.
Microsoft Windows-based tablets’ shipments more than doubled over previous quarter, standing currently at 5 percent OS share. New Windows-based products launched in Q2 at affordable price points received good response led primarily by brands like iBall, Micromax and Lenovo.
Nearly 75 percent of tablets sold in India are connected tablets (2G/3G/4G enabled) and 54 percent are 3G enabled owing to limited Wi-Fi hotspots in the country.
“With 4G network now being available nationwide through Airtel and more operators to join league soon, it presents a positive picture for 4G connected tablets in India,” said Kiran Kumar, research manager of IDC India.
“A strong differentiating use case specific to tablets, which could either be a solution or a technology itself is required to revive interest in the category. We’ve noticed new use cases such as POS devices, attendance systems, and sales-force automation to drive enterprise demand in the recent past,” summed up Kumar.
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