With 425% Yearly Growth, Tablets Are “Cannibalizing” PC Sales: Report

sony-xperia-z-tabletTablets are cannibalizing the personal computing market and have grown in sales by over 424% year on year, according to an industry body. Meanwhile, personal computer sales between April 2012 and March 2013 grew only 5% from the previous year to 11.31 million units, said MAIT, the body representing India’s IT hardware sector.

A word of caution before you get floored by the tablet sales number. Tablet sales is growing on a smaller base as compared to PC sales so the percentage numbers might look quite big. However, the fact remains that its growing fast.

Internet penetration in 22 cities it surveyed was 65% among businesses and 35% among households, the report said. MAIT is hoping that overall PC sales for the year 2013-14 will reach 12.11 million units, notching up a growth of 8%.

Here are some other findings of the study.

The Notebook Market In India

  • The Notebook sales posted a muted growth rate of 10%  16% this fiscal compared to 22% rate in the last year. Growth was driven by household segment accounting for 61% of overall sales growing at 14% year on year.
  • Netbook sales stood at 0.96 lakh unit; the market has gone for a major decline of 68% over the previous year.

Indian Desktop Market

  • The Desktop market is driven only by house hold segment as it grew at 14% over previous year. Household contribution to the Desktop market has increased from 53% in 2011-12 to 59% in 2012-13.
  • The Businesses sector posted a negative growth of 13% over previous year majorly because of steep decline in large enterprises and a declined growth of 53% over last year. However, SMB regained its composure and posted a positive growth of 49%.
  • The top four metros, accounted around 28% of the total desktops purchased and the Class B cities accounted for 12% of the market.

Tablet Market in India

  • Tablet PC witnessed a massive growth figure of 424%. The sales for 2012-13 stood at 1.9 million units as against 0.36 million units in 2011-12.

The Servers, Peripherals

  • During the year 2012-13, server sales registered a decline of 2% over the last financial year and it stood at 89,075 units in the current year.
  • Overall printer sales continued to decline albeit marginally at a rate of 1% during 2012-13 over the last fiscal year. The sales at 2012-13 stood at 2.93 million (29.3 lakh) units.
  • The UPS market sold at 2.53 million (25.3 lakh), at a decline of 1%. The decelerated growth in establishment segment was the main reason as it slipped at 16% over last year. The HH segment grew by 4% in the same period.

The Internet Entities

  • The number of active Internet entities posted 17.6 million in March 2013, growth of 11% over March 2012.
  • Internet penetration in the 22 cities was 65% among businesses and 35% among households.
  • Dial up contributed around 38% of the total internet connections in establishments as broadband contribution stood at 22%. The other mode of connections such as Leased lines and Data card contribution stood at 20% and 17% respectively.

    India Hardware Market 2011-12 Vs 2012-13 (Data: MAIT)
    India Hardware Market 2011-12 Vs 2012-13 (Data: MAIT)

Recommended Read: India Overtakes Japan to become 3rd Largest Smartphone Market

Download the presentation here (.zip)

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