Indian smartphone market expected to grow100 pct 2014-2015: MAIT report

Written by FE Online | New Delhi | Updated: Jun 26 2014, 22:13pm hrs
SmartphonesThe report finds that the smartphone segment saw a phenomenal growth of 244%. (Thinkstock)
The Indian IT industry body, Manufacturers' Association for Information Technology (MAIT) has released findings of its Annual Industry Performance Review for the financial year 2013-14 that finds the PC market to have registered a sluggish growth of only 6%.

The annual MAIT Industry Performance Review ITOPS, conducted by Indias leading market research firm IMRB International, is a survey of the IT hardware sectors efforts to manage the business environment, gauge the market potential and consumer trends.

Commenting on the findings and the performance of the IT hardware industry, Amar Babu, President of MAIT, said, The overall IT Hardware Industry struggled to keep up with the projected growth rates. On the whole we have witnessed mixed trends in the sector with some segments reporting strong growth patterns while few reported slow or negative growth rates. The sector has immense growth potential and we are hopeful that the upcoming budget addresses the issue of correction in duties anomalies which is needed for the overall growth of the IT hardware market in India.

The report finds that the smartphone segment saw a phenomenal growth of 244%, thanks to lead by introduction of low cost smartphones and reduction in data tariff. The smartphone market is expected to continue to go strong in the next fiscal as well.

Anwar Shirpurwala, Executive Director of MAIT opines, As the IT Hardware market touches $ 12.43 billion, we are optimistic about more than double digit growth of tablet PCs, notebooks, inkjet printers for the year 2014-2015. We expect 100 percent growth of smartphone during this time period with 4G networks getting rolled out and increased uptake of 3G data services. Also, the government promising to take corrective steps to boost manufacturing, we expect the IT hardware sector to benefit from it in the coming years.

According to the industry report for 2013-2014, while the Tablets growth dropped to 76% (from 424 percent in 2012-2013), Notebook PC has grown significantly by 55% among households.

The Tablet degrowth is obvious and can be attributed to some obvious factors. One it was difficult to sustain the same kind of growth as the initial base was very small. What is more important is the fact the consumer disconnect with the low-cost entry level Tablets has led to this degrowth. In a way, it is good as some of the poor quality brands have been pushed out out of the category, Babu explained.

As per the report,the Server segment showed 58% growth due to increased uptake from SMBs, the inkjet Printer category also saw a rebound.