The Indian laptop industry has been witnessing a boom in recent times.
Apart from the rapidly falling prices of laptops and new technologies being
packed into ultra-slick laptops, the entry of nontraditional players to develop
wireless infrastructure has given the market a further boost. For instance, a few
years ago, wireless connectivity on the laptop was considered to be a luxury.
Today, it has become a necessity with major hospitality chains in India
establishing wireless hotspots. Also many firms, airports and even schools are
planning/or have implemented WiFi.
International Data Corporation (IDC)the premier global provider of
market intelligence, advisory services, and events for the information
technology, telecommunications, and consumer technology marketsinferred that India is
the third fastest growing laptop market in the Asian region, with a compound
annual growth rate of 21.9 percent. Those numbers match IDC India's forecast for
the PC market, since it has projected a growth of 22.2 percent for the Indian
PC market in 2003 (IDC, 2004 and 2005). While many factors can be credited to
this surge in the laptop segment, the biggest driver is
probably the fact that businesses are posting healthy numbers and have started encouraging
their employees to work from home. Today, even non-IT companies are giving
laptops to their executives in a bid to boost productivity. The spurt in laptop usage
can also be attributed to the increasing usage of IT and the automation of the
sales force in sectors like pharmaceuticals, Fast Moving Consumer Goods (FMCG)
and services, and in government offerings (Chris Long, 2005).
The real opportunity, however, lies in exploiting the market to its
fullest potential. For instance, the Indian market for laptops and handheld devices
is still small compared to other Asian countries. According to Rajiev Grover,
Business Manager, Mobile Products, HP India, laptop sales account for only 2 percent
in India whereas the corresponding figures for Thailand, Korea and Australia
are 10, 15 and 20 percent respectively (David and Steve, 2005 and MIC, 2005).
The market dynamics of PCs and laptops are different. Two-thirds of PC sales
come from white-box manufacturers. There are no such manufacturers for laptops.
The laptop market has done well in comparison to sales of branded PCs from
the Indian and MNC vendors, which shows sales figures of 60,000 laptops
against 700,000 for branded PCs (Newsletter from Acer India, 2004). |