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India Tablet shipments sluggish in Q1 2016: International Data Corporation

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New Delhi: According to International Data Corporation (IDC),Indian tablet market in CY Q12016 remained flat over previous quarter with total shipments of 0.86 million units (including slate and detachable form factors). However, shipments grew by a marginal 1.3 percent over the same period last year. Declining consumer interest in the slate tablet form factor and rapid growth of large screen smartphones (phablets) causing the tablet market to slow down.

Detachables traction continued in Q1 2016 with triple digit year-over-year growth, although it was on low base as uptake in this form factor began mainly from Q2 2016.“Windows based detachables continue to account over 70 percent share, however Apple’s recent foray into this segment has garnered them to clock decent numbers given the premium price of their products. Although, continued long-term success may prove challenging as it plays inhigher entry price pointand iOS is yet to prove its enterprise-readiness unlike Microsoft”says,Karthik J, Senior Market Analyst, IDC India.

Micromax continued to leaddetachables category accounting for more than one-third oftotal shipments in Q1 2016.“Smartphone vendors constitute more than half of detachables. Their strong understanding of mobile ecosystem and the volume achieved from their smartphone product lines would allow them to aggressively compete in this new computing segment”, adds Karthik.

Datawind: Datawind withstood its top position with 27.6 percentage share as shipment grew at a healthy 33.5 percent over previous quarter. Vendor’s shipments doubled year-on-year showing a sharp trajectory in last one year. Vendor’s television channel partners played pivotal role in this quarter’s growth through their aggressive marketing and selling during mid-quarter.

Samsung: Samsung sustained its 2nd place with vendor share of 15.2 percentage in Q1 2016. Shipments dipped marginally by 3.7 percent over previous quarter but grew 5.1 percent over Q1 2015. Entry level Galaxy Tab models continue to be volume runners for Samsung in Slate tablets. However, vendor began to face stiff competition in premium detachable segment from Apple and Microsoft in Q1 2016. 

Lenovo: Lenovo being the only PC vendor in Top 5 moved up to 3rd position in Q1 2016 with a market share of 13.6 percentage. Q1 2016 shipment grew at a healthy 30.5 percent over the same period last year while dipped marginallyover Q4 2015. While commercial segment continued to drive volumes for the vendor, its new product Phab saw some healthy shipments in consumer segment.

Micromax: Micromax slipped to 4th place as shipments dip further in Q1 2016 by 27 percentover previous quarter to hold themarket share of 11.3 percentage. However, vendor managed to post 16.2 percent growth over the same period last year owing to healthy contribution from its Laptab detachable. 

iBall: iBall manages to be in Top 5 with vendor share of 8.7 percentage in Q1 2016. iBall shipments dip approximately by 12 percentage both sequentially and year-on-year. While the vendor was one of the first few who introduced low cost detachables in the Indian market, it has somewhere lost out opportunity to capitalizethe growth in detachable category.

IDC India Forecast:

Tablet market in CY 2016 is expected to be stagnant in India but is likely to witnesschanging trends like healthy growth in commercial segment, migration to higher screen slate tablets and increase in adoption of 4G based tablets.

“Detachables are expected to ramp upswiftly with majority traction coming from affordable windows based devices. Also, with Apple launching iPad pro 9.7, iOS is likely to gain share in detachables category this year”, says Navkendar Singh, Senior Research Manager, IDC India.

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