State of PC market in India _ June 2013

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PC market in India

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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.

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Vendor Share - India Overall PC Market,
Q1 2013 (% of Shipments)
Hewlett-Packard 22.5
Acer 13.8
Dell 13.8
Lenovo 11.7
Others 38.2
Total 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.)

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Smartphone market in India

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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

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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
92.8% 93.2% 93.5%
90.9%
7.2% 6.8% 6.5%
9.1%
86%
88%
90%
92%
94%
96%
98%
100%
2012 Q1 2012 Q2 2012 Q3 2012 Q4
Feature Phones vs Smartphones - CY 2012
Feature Phone Smartphone
Source: IDC Asia/Pacific Mobile Phone Tracker Q1 2012 – Q4
2012

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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

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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.

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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

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Tablets market in India

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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

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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.

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India ICT 2013 Top 10 Predictions: IDC

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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

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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

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Karan Bhujbal
Twitter: @karanbhujbal
Blog: bhujbalview.blogspot.in
Email: karanbhujbal@gmail.com
Thank You