Tablets, a surprise flop, while inkjets hang on in Indian market:MAIT study

New Delhi; June 27, 2014:  Contrary to popular perception,  growth of  tablets in India  are dropping sharply while  notebook PCs  remain popular as do ink jet printers. Smartphones unsurprisingly, are the biggest success story of the industry. These  are the key findings of  the annual peformance review of MAIT, the apex body representing India’s IT hardware, training and R&D services sectors.
The  Industry Performance Review – ITOPS, conducted by India’s leading market research firm IMRB International, is a survey of the IT hardware sector’s effort
Says MAIT President,  Amar Babu: “The overall IT Hardware Industry struggled to keep up with the projected growth rates. The sector has immense growth potential and we are hopeful that the upcoming budget addresses the issue of correction in duties anomalies which is needed for the overall growth of the IT hardware market in India.”
Adds Executive Director Anwar Shirpurwal: “As the IT Hardware market touches $ 12.43 billion, we are optimistic about more than double digit growth of tablet PCs, Notebooks, Inkjet printers for the year 2014-2015. We expect 100 percent growth of smartphone during this time period with 4G networks getting rolled out and increased uptake of 3G data services."
Key highlights of the study:
The total PC sales between April 2013 and March 2014, combining desktop computers, notebooks and netbooks were at 11.85 million (118.5 lakh) units, registering a growth of six per cent over the last fiscal. The sales of desktops stood at 5.01 million (50.1 lakh) units registering a negative growth of twenty six per cent (-26%). Notebooks and Netbooks taken together recorded a consumption of 6.84 million (68.4 lakh) units, growing fifty five per cent over the last year. PC sales are expected to be around 12.21 million (122.1 lakh) units in FY 2014-15, a growth rate of three per cent.
The Notebook Market:
·    The Notebook sales posted an impressive growth rate of 55% this fiscal compared to 10% rate in the last year. This growth was driven by House-Hold (HH) segment that accounted for about 65% of the total Notebook sales and registered a growth of 66% during 2013-14 over the previous year. 
·    Notebook sales among Establishments during 2013-14 ended with a rise of 39%.The growth is mainly accounted by SMB.
The Desktop Market:

·    Overall the Desktop market has shown a negative growth of -26% driven by Household as it de-grew at -42%% over previous year. 

·    The Establishment sector also posted a negative growth of -2% over previous year. 

The Tablet Market:
·    Tablet PC witnessed a muted growth of 76% when compared to triple digit growth in the last two years. The sales for 2013-14 stood at 3.35 million units as against 1.9million units in 2012-13. 

·    The market is expected to grow only by about 27% in FY 2014-15 owing to the consumers moving to adoption of higher screen size smartphone.

The Servers Market:
·    During the year 2013-14, server sales registered a growth of 58% over the last financial year and it stood at 104,075 million units in the current year.

The Peripherals Market:

Overall printer sales grew by 6%during 2013-14 over the last fiscal year. The sales at 2013-14 stood at 3.10 million (31.0 lakh) units.

Among hard copy peripherals, Ink Jet printer rebounded with a growth of 8% led by sales of container ink supply system Tank-based) printers. The consumption stood at 1.17 million units from 1.08 million (10.8 lakh) units.  
Dot-matrix printer sales declined albeit marginally by 1% to stand at 0.27 Million Units from 0.272 million (2.72 lakh) units in 2012-13.