4G Tablets to Constitute 50% Market Share in CY’2017

According to CMR’s India Quarterly Tablet PC Market Review- 1Q 2017, 0.76 million Tablet PCs were sold (shipped) in India, recording 6% decline over the previous quarter.

However, the market recorded a 16% decline in 1Q CY’2017, when compared with the same quarter of last year.

Datawind continued its top position during 1Q CY’ 2017, with 34% market share. iBall was at number 2 position with 16% market share followed by Samsung (15%).

4G and 3G based Tablets witnessed sequential increase of 15% and 31%, respectively, in 1Q CY’ 2017 in terms of units shipped. Alternatively, 2G and Wi-Fi based Tablets saw sharp decline of 62% and 33%, respectively, in 1Q CY’ 2017 as compared to the previous quarter.

“The continuous decline in the Tablet space could be attributed to the lack of promotional activities in the space. Aadhaar has, of course, provided a lot of impetus to the market, but at the same time B-To-C consumption entirely depends on the promotional activities and some exciting features. Aadhaar has led to a rise in government orders, which is a positive factor for the market,” says Menka Kumari, Lead-Analyst, Tablets, CMR.

The Tablet market within the price category of INR 10-20K and less than INR 5K witnessed 48% and 4% sequential growth, respectively, during the quarter. On the other hand, the price category of INR 20-30K saw a sharp 61% sequential decline in 1Q CY’2017 and INR 5-10K witnessed 26% decline, as compared to the last quarter in terms of units shipped.

Future Outlook

On the back of increased 4G penetration, CMR believes that the 4G Tablets segment would constitute 50% of the market by the end of this year. So far, 4G availability in India has reached 81.56%.

The GST regime is also going to affect the Tablets market, but the magnitude would be gauged after its implementation as still a lot of clarity is expected on its implementation front.

“In 1Q CY’ 2015, the 4G market grew at a single-digit (6.86%), but with the growth of 4G connectivity, the 4G Tablets segment saw double-digit growth. The upward trend in 4G market growth would continue and we anticipate the 4G Tablet market to clock 50% in CY’ 2017,” Menka said.

“The smartphone market has moved towards 4G and the Tablets segment would also follow the same trend. The demand for SIM-enabled devices will continue to grow, while Wi-Fi enabled devices will continue to see demand from the student community,” Menka concluded.

Android-based Tablets have already captured the majority of the market, while Windows-based Tablets have seen continuous decline in India market. It seems this scenario is not likely to change in the coming quarters also.