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The netbook sales in India have been growing strongly with major demand from the home segment. Personal computer market is expected to grow as the economy is recovering from the recession. The newest addition to this consumer product group is notebooks and netbooks. However, it has been seen that there is no clear demarcation between inexpensive notebook and netbook as an upgraded version of a netbook is marketed as a notebook. Requirements for greater mobility along with the demand for low cost personal computer are expected to develop the netbook market in India.
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An analysis of drivers explain factors contributing to the growth of netbook market including growing SMB, development of cloud computing, introduction of 3G, demand from upper and middle income group and opportunity in tier II and tier III city. An analysis of challenges include development of iPad and tablet PC, and limited acceptability.
The various trends in the market have also been highlighted and include convergence of mobile and PC, netbook as lifestyle PC and netbook as a first buy option.
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2. Executive Summary
Personal computer market is expected to develop due to the growth in new technology
Notebook and netbook market are growing strongly with major demand from the home segment
Market
There is no clear demarcation between inexpensive notebooks and netbooks
Drivers Challenges
Growing SMB Development of iPad and
Development of Cloud Computing Tablet PC
LE
Drivers & Introduction of 3G Limited Acceptability
Challenges Demand from Upper and Middle
Income Group
MP
Opportunity in Tier II and Tier III City
Trend
A
Convergence of mobile applications and PC is being capitalized by mobile phone manufacturers
S
who are launching netbooks
Netbook was initially introduced for mobility and internet use but recently Sony has started
offering netbook as a lifestyle PC
Recently, netbook is also being bought as a first computer by individuals
Netbook offered by Company 3 is considered to be high ended as well as stylish PC
Competition Domestic Players Foreign Players
Company 1 Company 2 Company 3 Company 4
NETBOOK MARKET IN INDIA 2011.PPT 2
4. Various types of personal computers are available in the
market, netbook and notebook as a latest addition
Personal Computer
Desktop Computer Laptop
PLE
• Desktop PC is a computing device which includes a • It’s a mobile computer with a full-sized keyboard, flip-
separate unit
S M
monitor, keyboard, central processing unit (CPU) as a
A
• It has more computing power with higher stability
and speed
up monitor and space for built-in optical or floppy-
disk storage drives
• Netbook, Notebook and Tablet PC are the sub classes
of laptop
Focus of the
Report Notebook Netbook
• A new class of laptop with a full-sized keyboard and a • It is smaller, lighter and a more portable laptop,
flip-up monitor usually cheaper than a full-size laptop and notebook
• It doesn't have space for built-in optical-disk drives • Netbook has lower computing power and features
rather provides ports for connecting external drive but when upgraded it is sold as a notebook
• Its shape, size, weight, computing speed and battery • There is no clear demarcation between netbooks
power is optimum and inexpensive laptops or notebooks
Source:
NETBOOK MARKET IN INDIA 2011.PPT 4
5. Notebook and netbook market has been growing strongly
and with strong demand from the home segment
Laptop (Notebook & Netbook) – Overview Market Size and Growth
• The market has witnessed rapid development mn Units
Notebook market will grow as the economy recovers 4
a% Y
– Generally used by corporates where higher computing power and
3 X
security is required
2 V
Netbook is categorized as A, B, C PC specially designed for W
mobility 1 U
– Its market is considered to be at a nascent stage
0
PLE
• There is no clear demarcation between inexpensive
notebooks and netbooks
Optimized versions of notebooks with lower processing
06-07 07-08 08-09 09-10 10-11e
A total of XX mn Netbooks were sold during 09-10
Market Segmentation
M
capabilities and storage space can also be called netbooks
A
• Netbooks were introduced in 20-- to primarily target
S
net surfers and executives looking for a lighter PC b% S1
mn Units S2
Development of different parts for netbook, such as D, will c%
1.5 R4
further optimize the netbook
T2 T4
Pricing of netbook is mainly dependent on the market 1.0 R2 R3 T3
positioning of the netbook T1
0.5 R1
Market is expected to incline toward G from conventional
T 0.0
06-07 07-08 08-09 09-10
• Notebook & netbook is also used as a Q computer for
greater mobility Preference for Notebook increased faster in theS1 segment
Source:
NETBOOK MARKET IN INDIA 2011.PPT 5
6. Drivers & Challenges – Summary
Drivers
Growing SMB
Challenges
Development of Cloud Computing Development of iPad and Tablet PC
Introduction of 3G Limited Acceptability
Demand from Upper and Middle
Income Group
Opportunity in Tier II and Tier III City
NETBOOK MARKET IN INDIA 2011.PPT 6
7. Trends – Summary
Convergence of Mobile
and PC
Key
Trends
Netbook as a First Buy
Netbook as Lifestyle PC
Option
NETBOOK MARKET IN INDIA 2011.PPT 7
8. Domestic Players in the Market (1/2)
Company Snapshot: Company 1
Corporate Information Financial Performance
Total Revenue
Headquarters Location 1
INR bn Net Profit INR bn
Founded 19-- 150 4
100
Company type Listed
50
Key People Person A
0 0
LE
2007 2008 2009 2010
Business Highlights
P
• Company 1 operates as a hardware, services, and information and communication technology (ICT) system integration
company
M
Its products include business and personal computers (PCs), home PCs, and notebooks
A
• Company introduced a new range of A brand netbooks in 20-- with 3G capability, high battery backup of up to X hours
which are available in red, blue and black
S
• Recently it has launched products based on latest Intel Architectures such as M, N and O for its servers, desktops,
notebook and netbook range respectively
It introduces four new laptops which includes B Laptop C, targeted towards first time laptop users, D Laptop E based on the latest Intel
Calpela platform and F Laptop G, the advance and sleek looking ‘Thin n light’ notebook
In the netbook segment H introduced J Netbook K with the latest Intel Pinetrail atom processor
Source:
NETBOOK MARKET IN INDIA 2011.PPT 8
9. Thank you for the attention
The Netbook Market - India report is a part of Research on India’s Information Technology
Series.
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Gagan Uppal Gaurav Kumar
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NETBOOK MARKET IN INDIA 2011.PPT 9