LAPTOP INDUSTRY IN INDIA

According to IDC India, a premier global market intelligence firm, the laptop market has registered 79% Year-on-Year (YoY) growth during 2006. The laptop sales is growing at much faster rate than projected. India's personal computer market is undergoing a major transition. However, laptop computers cannot completely wipe out desktop computers, because both are designed to meet different needs or different consumer segments. According to a top official of HCL Info Systems, market share of laptops would be 35-40% in the next two years.

 

MAJOR PLAYERS:-

 

The major players in the laptop category are:

 

• Hewlett Packard (HP)

• Toshiba

• IBM Lenovo

• Dell Computers

• Sony

• Acer

 

 

Growth Drivers

 

• Indian Laptop market in now in sync with global market. It was in 2005 that sales of laptops surpassed the sales of desktop computers for the first time in India.

• The Laptop market is growing at a fast rate because of change in work life of consumers. As the need for "anytime anywhere" access to information is increasing, the sales of Laptops are also increasing.

• Other factors that are responsible for the hike in sales figure are reduction in prices and affordability. Laptops are now sold at approximately half the price at which they were sold two years ago. Laptops prices are now almost at par with the desktop computer prices.

• The third most important factor is duty free import of Laptops as a personal baggage that has helped a lot in increasing the penetration level of the product among the consumer population. Awareness about laptops has also increased over the years.

 

Bulky desktops may soon become obsolete. Smarter, slimmer and feature rich laptops are the way to go. With prices of laptops crashing to desktop levels. PC makers in India expect every second computer sold to be a laptop in the next four to five years. At present, the ratio of laptops to desktops in India is 20:80. “The ratio will become 50:50 in the next few years with more and more users preferring laptops for increased portability,” says Hewlett Packard (HP) India director (consumer products) Rajiev Grover.

 

Indian market will shape up like the Middle East market where laptop sales outnumber desktop sales. With price reduction, laptops have percolated all sectors be it education, telecom, retail, telecom at entry level.” Laptop prices have fallen recently due to the rise in rupee against the dollar, making component imports cheaper and duty reduction on laptops.

 

Acer India managing director WS Mukund says: “India is still a developing market and thus price conscious. But as the market matures and prices fall further, we will see laptops and desktops to be in the ratio of 50:50 in four-five years.”

 

Laptop makers are offering attractively priced machines. Some laptops (for eg. from Acer) are also available for under Rs 20,000. “But consumers are becoming more value conscious and gravitating towards the Rs 35,000 laptop range”.

 

In 2000, only 4% of PC sales came from laptops. Growing at about 86% per annum, currently laptop sales comprise 20% of total PC sales in India. According to IDC, in 2006-07, HP retained the top spot with a market share of 39.6% in the notebook segment. Lenovo came in at the second spot with 17.6% market share and Toshiba climbed up to take the third spot replacing Dell. However, during Q1 2007, HCL has outpaced Toshiba and Dell to grab the third spot. The market is becoming increasingly competitive. “Our basic model is priced at about Rs 29,900. With falling prices, there is some amount of cannibalisation of the desktops market by laptops,” says George Paul of HCL Infosystems.

 

Currently, a laptop with same configuration from different brands is priced in a range of Rs 10,000-Rs 15,000. Most vendors feel that increased adoption is coming in the Rs 35,000 range. However, some vendors like HP whose Pavillion range is priced in the Rs 50,000 plus. HP Pavillion range has a share of about 10% in the total laptop market. Being highly feature rich, it’s priced at over Rs 50,000. But consumers are opting for an integrated entertainment device on which they can play games, listen to music or watch videos.

 

On the enterprise end, enhanced productivity with faster processors and increased portability and connectivity are going to be the prime drivers for increased adoption. laptops are finally set to challenge the desktops dominance. Notebooks are smarter and slimmer looking and now more affordable too.