Tablet Manufacturers India Bound - Analyst Blog
27 6월 2011 - 5:15PM
Zacks
India becomes a major destination
for almost all tablet manufacturers. Several large global tablet
makers are set to explore the second largest emerging economy of
the world within the next few months. Currently, India is
witnessing a nationwide 3G network launch and it is on the verge of
deployment of 4G LTE TDD (Long-Term Evolution Time Division Duplex)
network by the broadband wireless license holders. Despite around
750 million wireless subscribers, the broadband penetration rate is
a mere 2%. Wireless operators are focusing on high-margin data
services, which in turn have created a huge market opportunity for
tablet makers.
The global tablet king
Apple Inc. (AAPL) with iPAD and Asian giant
Samsung Corp. with Galaxy Tab are already in the field. In
addition, Dell Inc. (DELL), Acer Inc., and Toshiba
Corp. are the other early entrants in the lucrative Indian market.
Motorola Mobility Holdings Inc. (MMI) and
Research In Motion Ltd. (RIMM), which were once
recognized as global tech giants, are also desperately trying to
make solid inroads in India that may help these fallen heroes to
offset some of the losses in the North American markets.
Nevertheless, we believe catering
Indian market will not be a cake walk for all these large tablet
manufacturers. Firstly, Indian customers are highly price
sensitive. At present, price of tablets in India is within the
range of $450 - $780, which several analysts consider as very high.
Secondly, India itself has several home grown tablet manufacturers
such as Micromax, G5, Karbonn, and Lava to name a few. Once these
low cost producers will start flooding the market, the price will
plummet automatically. However, this low price of tablets may
enable large tablet markers to opt for volume sell.
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