prepared forprepared by. 02 industry validation of the market figures 03 01 04 itops longest running...

IT Industry Performance

Annual Review 2012-13

Prepared for Prepared by

02Industry Validation of the Market Figures

03

01

04

ITOPS

Longest Running Tracker Study on the Indian IT Hardware market

Only Demand-Side Study on the Indian IT

Hardware market

Largest Tracker Study on the Indian IT Hardware

market

About ITOPS… An Introduction

Data is collected after ‘Last Mile’

Market/ Customer Sentiments

• No undercounting/over counting stock in pipeline• Includes direct imports by customers • Accurate estimation of assembled market

• Factors in the market/ customer sentiments and opinion along with industry level indicators

Accurate assessment of Buyer Profile

Identification of Emerging Segments

Identify and observe Market Trends

• “Who bought”, “Where used”…Not dependent on ‘perceptions’ of reseller/ channel member/ vendor

• Need to monitor changes in user’s perspective to obtain cues for innovative marketing

ITOPS

Only Demand-Side Study on Indian IT Hardware Market… Designed to deliver the much needed demand-side insights

• The Study covers a sample of around 28,000 + entities

• The study is conducted on an annual basis

• … across 35 cities of India for the household segment– Representation of entire urban India

• … across 22 cities of India for the household segment– Greater than 0.2 Million Pop Towns

28,000+Entities

19,500+Households

8500+Estabs

Largest Study on Indian IT Hardware Market… Coverage of 35 Cities in Household segment and 22 cities in Establishment segment

MAIT

Findings on Market-size projected to

All - India Urban market

Various IT Players

Validation

Validation

• The findings from ITOPS is accepted as the official market performance of Indian IT hardware market by Manufacturers Association for Information Technology (MAIT), the nodal body for IT hardware industry in India.

• Information used by Govt. of India for all IT & allied planning.

Industry Validation… Two Pronged Validation Process

ITOPS Advantage… The cutting edge

Accurate, Relevant & Timely Knowledge

Regular Market Feedback

Customization to meet needs

Continuous & Holistic Support

A two-pronged approach involving primary route among end-users and validation of this data from the vendors and the channel ensures accuracy of the data

Also, with data for more than eleven consecutive years, the study is now able to plot the trends to show the future direction

Bi-annual reports provide the performance and trends of the preceding half year

Quarterly channel reports provide mid quarter check on the performance and the need for course correction required if any

Specific question (s) or rider questionnaire (s) can be incorporated as per client’s requirement to test out hypotheses in the dynamic changing business environment

Also, the report could also be customized based on client’s requirement of product & information coverage

ITOPS is a continuous relationship. Analysts and consultants from the eTechnology Group @ IMRB would be available for answering any query, drill-downs, special analysis etc that client may need to internalize the findings from ITOPS

SAMPLING METHODOLOGY

Sampling Methodology… Households

Households and Home Offices

SEC A SEC B SEC C

Random Sample of SEC A, SEC B, SEC C , SEC D/E Households in each city

Pure Household

Employed by Others

Home Office

Self-Employed

Based on Occupation of the CWE

Universe Estimation of SEC A, SEC B & SEC C HH National Readership Survey

SEC D SEC E

Sampling Methodology… Establishments

Businesses owning at leastOne telephone line

Small Medium Large

Random Sample Across ACE* Grid

Type of Establishment

Universe of Estimation Based on ITOPS Universe Estimation Frame work

Government Outlet Office Manufacturing

Industry Vertical

*ACE- Principal Activity carried out at the respective establishment Classified by Employee Size

ANNUAL ROUND-UP ON IT HARDWARE

INDUSTRY

PC MARKET SLOWING DOWN, GREW ONLY BY

5%

01

Missed MAIT forecast by 1.1 million

12

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 -

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

5,046,558.00

6,341,451.00

7,344,306.006,796,107.00

8,034,556.00

9,314,934.00

10,817,709.0011,307,734.34

SALES OF PC YEAR-ON-YEAR- ALL INDIA , URBAN

+05%

CAGR growth * +14%

Year

Sale

of P

C (in

mill

ion

units

)

+16%

* CAGR growth – Growth of 2011-12 over 2005-06

NOTEBOOKS CONTINUES TO PUSH

UP THE PC SALES

02

14

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-130

2000000

4000000

6000000

8000000

10000000

12000000

4,614,724.005,490,591.005,522,167.005,279,648.005,525,992.006,030,418.006,711,911.006,769,423.45

431,834.00850,860.00

1,822,139.001,516,459.002,508,564.00

3,284,516.004,022,501.004,404,878.76

Notebook

Desktop PC

Growth Desktop PC Notebook2012-13 over 2011-12 +01% +16%2011-12 over 2010-11 +11% +22%2010-11 over 2009-10 +09% +31%

CAGR GROWTH* +06% +45%

NOTEBOOK CONSTANTLY OUTPERFORMING DESKTOP PC OVER THE YEARS

SALES OF PC , ALL INDIA , URBAN

Sale

of P

C (in

mill

ion

units

)

Year

11.17

Overall sales (in million)

10.73

9.31

8.03

6.807.346.34

5.05

+05%+16%


REST OF INDIA CONTINUES TO MARCH

AHEAD IN PC SALES

03

Its the only market where overall Desktop PC sales has witnessed a growth

16

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-130%

25%

50%

75%

100%

54%60% 65% 68%

61% 57% 59% 60%

13%8%

12% 7%8% 13% 13% 12%

33% 32%23% 25%

31% 30% 28% 28%

Top 4 cities

Next 4 cities

Rest of India

REST OF INDIA CONTRIBUTION IS ON THE RISE FOR THE 3RD CONSECUTIVE YEARSa

le o

f PC

– by

Tow

n cl

ass

(in %

)

Year

SALES OF PC, BY TOWN CLASS, ALL INDIA , URBAN

11.3110.829.318.036.807.346.345.05


+05%+16%Overall sales

(in million)

HH SEGMENT DID SLOW DOWN BUT

GREW IMPRESSIVELY

04

18

HH SEGMENT IS DRIVING PC SALES CONTRIBUTING AROUND 60% OF THE MARKET

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-130

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

4,614,724.00 4,616,571.00 4,365,613.00 4,242,849.00 4,323,783.00 4,440,666.00 4,862,975.00 4,519,534.91

431,834.001,724,880.00

2,978,693.002,553,258.00

3,732,773.004,874,269.00

5,871,435.00 6,788,199.44Household

Establishment

Sale

of P

C (in

mill

ion

units

)

Year

SALES OF PC, ALL INDIA , URBAN Overall sales (in million)

11.31

10.82

9.31

8.03

6.807.34

6.34

5.05

+05%+16%

19

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-130

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

3,472,323.004,084,197.00

3,338,416.00 3,496,150.00 3,205,004.00 3,015,864.00 3,174,751.48 2,746,957.52

1,142,401.00

1,406,394.002,183,752.00 1,783,498.00 2,320,988.00 3,014,555.00

3,537,159.07 4,022,465.94 Household

Businesses

DESKTOP SEEMS TO BE MORE RELEVANT FOR HOUSEHOLD

Year

Sale

of D

eskt

op P

C (in

m

illio

n un

its)

Growth Household Businesses2012-13 over 2011-12 +14% -13%2011-12 over 2010-11 +17% +05%2010-11 over 2009-10 +30% -06%

SALES OF DESKTOP PC, ALL INDIA – URBAN

6.776.716.03

5.535.285.525.49

4.61

+01%+11%CAGR growth * +06%



20

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-130

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

5,000,000

376,577.00 532,374.001,027,197.00 746,699.00

1,118,779.00 1,424,802.00 1,688,224.00 1,733,010.1955,257.00 318,486.00

794,941.00769,760.00

1,411,785.00

1,859,714.00

2,334,276.002,671,868.57 Household

Businesses

NOTEBOOK GROWTH IN BUSINESSES HAS BEEN DECLERATED BUT IT HAS EXHIBITED POSITIVE GROWTH OVER THE YEARS

Year

Sale

of D

eskt

op P

C (in

m

illio

n un

its)

SALES OF NOTEBOOK PC , ALL INDIA – URBAN

4.40

4.02

3.28

2.53

1.52

1.82

0.850.43

+10%

+22%

CAGR growth * +43%



Growth Household Businesses2012-13 over 2011-12 +14% +03%2011-12 over 2010-11 +26% +18%2010-11 over 2009-10 +32% +27%

SEC C HAS BECOME AN ESTABLISHED PC

DRIVER

05

Posted a growth of 67%

22

WHILE DESKTOP GROWTH IS MUTED IN SEC A AND B , SEC C CONTINUES TO SHOW UP ITS GOOD PERFOMANCE

2007-08 2008-09 2009-10 2010-11 2011-12 2012-130%

20%

40%

60%

80%

100%

43% 39%30% 31% 30% 31%

39%39%

42% 39% 34% 27%

18% 22% 29% 30% 36% 42% SEC C

SEC B

SEC ADes

ktop

PC

– H

H –

SEC

wis

e (i

n %

)

Year

Growth SEC A SEC B SEC C2012-13 over 2011-12 +18% -09% +31%2011-12 over 2010-11 +14% +02% +41%2010-11 over 2009-10 +34% +24% +34%

4.023.53Overall sales

(in million) 3.012.321.782.18

Overall sales (in million)SALES OF DESKTOP PC, HH, ALL INDIA – URBAN

+14%+17%

23

A POSITIVE GROWTH IS EXHIBITED ALL ACROSS SEC BUT SEC C LEADS THE PACK

2007-08 2008-09 2009-10 2010-11 2011-12 2012-130%

20%

40%

60%

80%

100%

69% 73%59% 56%

45%38%

26% 18%32%

32%37%

33%

5% 9% 8% 12% 18%31%

SEC C

SEC B

SEC A

Not

eboo

k P

C –

HH

– S

EC w

ise

(in

%)

Year

2.672.33Overall sales

(in million) 1.861.410.770.79

Overall sales (in million)SALES OF NOTEBOOK PC, HH, ALL INDIA – URBAN

Growth SEC A SEC B SEC C2012-13 over 2011-12 +01% +05% +90%2011-12 over 2010-11 +01% +45% +88%2010-11 over 2009-10 +25% +32% +76%

+26% +14%

SMB AND GOVT SEGMENT HAS

REBOUND FROM THE SLUMP

06

CONTRIBUTED MAINLY BY DESKTOP PC

25

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-130%

20%

40%

60%

80%

100%

52%

30%43% 45%

57%43% 38%

67%

48%

70%57% 55%

43%57% 62%

33%

Large

SME

SME CONTRIBUTION HAS INCREASED THIS YEAR FOR DESKTOP PC

+49%

-53%

CAGR GROWTH – SME +07%

CAGR GROWTH – LARGE -17%

Year

Des

ktop

PC

- Bus

ines

ses

(in

%)

2.753.173.023.213.503.344.083.47

-13%+05%Overall sales

(in million)

SALES OF DESKTOP PC, BUSINESSES, ALL INDIA – URBAN Overall sales (in million)

26

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-130%

20%

40%

60%

80%

100%

53%44%

57%68%

56%46%

60% 63%

47%56%

43%32%

44%54%

39% 37%

Large

SME

A DECENT POSITIVE GROWTH IS EXHIBITED BY BOTH SEGMENT IN NOTEBOOK SEGMENT

+07%

CAGR GROWTH – SME +30%

CAGR GROWTH – LARGE +14%

Year

Des

ktop

PC

- Bus

ines

ses

(in

%)

1.731.691.421.120.751.030.530.28


(in million)

SALES OF NOTEBOOK PC, BUSINESSES, ALL INDIA – URBAN Overall sales (in million)

+03%

27

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-130%

20%

40%

60%

80%

100%

10% 5% 8% 5% 1%9% 6% 8%

81% 88% 84%

62%82%

74% 83% 77%

9% 6% 7%

13%

12% 16%10%

11%

1% 1% 2%

20%

5%

1% 1% 3%

Govt. Locations

Outlets

Office locations

Factory locations

GOVT. SEGMENT SURGED IN DESKTOP SALES

+38%

Not

eboo

k P

C - B

usin

esse

s

(in %

)

Year

SALES OF NOTEBOOK PC, BUSINESSES, ALL INDIA – URBAN

1.731.691.421.120.751.030.530.28


(in million)


LJP IS BECOMING THE DE-FACTO PRINTER

07

LJP is the sole positive contributor

29

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-130

1,000,000

2,000,000

3,000,000

4,000,000

472,074.00 441,316.00 374,700.00 393,951.00 383,597.00 384,869.00 392,589.00 272,933.99

717,001.00 608,991.00 783,607.00 751,683.00

1,142,431.00 1,355,504.00 1,190,676.001,083,645.27

325,111.00 443,200.00 442,286.00 472,022.00

971,807.00

1,386,408.371,381,770.55 1,572,293.54

Laser printer

Inkjet printer

Dot Matrix Printer

Year

Prin

ter s

ales

, Al

l Ind

ia ,

Uni

ts (i

n m

illio

n)

2.932.973.13

2.50

1.621.601.491.51

-01%-05%CAGR growth +12%

SALES OF PRINTER, ALL INDIA – URBAN

Growth DMP IJP LJP2012-13 over 2011-12 0% 19% 43%2011-12 over 2010-11 2% -12% 0%2010-11 over 2009-10 -30% -9% 14%


WHILE LJP SALES IS INCHING UP ,DMP SALES SEEMS TO BE DIPPING AWAY

TABLET PC IS SHOWING A PHENOMENAL

GROWTH FOR SECOND CONSECUTIVE YEAR

08

31

2010-11 2011-12 2012-130

500000

1000000

1500000

2000000

93,150.00357,500.0

0

1,903,356.42 Tablet PC sales

45% 05%29%

21%

TABLET OWNER AS

PC OWNER SMARTPHONE OWNER

PC OWNER + SMARTPHONE OWNER

ONLY TABLET

Sale

of T

able

t (i

n m

illio

n un

its)

Year

+424%

SALES OF TABLET PC, ALL INDIA – URBAN

TABLET PC SURGED IN GROWTH AND AROUND 1/5TH OF TABLET OWNERS OWN ONLY TABLET PC

+284%

32

Projected sales Actual sales10

10.5

11

11.5

12

12.5

13

13.5

12.37

11.17

0.62

1.9

Tablet PC

Product category Projected sales Actual sales DifferenceIn million In million

PC 12.37 11.17 -1.2Tablet 0.62 1.90 +1.28

PC + Tablet 12.99 13.07 +0.08

SALES OF PC AND PRINTER, ALL INDIA – URBAN

Sale

(in

mill

ion

units

)

CONSUMERS PREFERENCE SEEMS TO BE TILTING FROM PC TO TABLET

SERVER MARKET FELL BUT THE DECLINE WAS

LOWER THAN BUSINESSES PC SALES

08

34

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-130

20000

40000

60000

80000

100000

120000

140000

89,161.00 90,189.00

122,178.00 119,591.00

101,827.0087,275.00 90,699.00 89,074.82

SERVER SALES, ALL INDIA,URBAN

-02%

CAGR growth +0%

Town class Growth of 2012-13 over 2011-12PC - Businesses - 08%

Server - 02%


+04%

Serv

er s

ales

, un

its

(in

mill

ion)

UPS SALES IS DRIVEN SOLELY BASED ON HH

PC GROWTH

09

36

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-130

1,000,000

2,000,000

3,000,000

2,172,290.00

1,620,738.00 1,518,433.00

2,324,480.00 2,384,197.002,554,779.00 2,532,895.37

-01%CAGR growth – +3%

UPS SALES, ALL INDIA,URBAN

Growth Household Businesses2012-13 over 2011-12 +04% -01%2011-12 over 2010-11 +06% +11%2010-11 over 2009-10 +10% -15%

UPS

sal

es ,

units

(i

n m

illio

n)

WHAT LIES IN FUTURE

10

38

FORECAST, ALL INDIA,URBAN

Total Sales (in million)

2013-14 2012-13 % Growth

Desktops 6.99 6.77 +03%

Notebooks 5.12 4.40 +16%

Total PC 12.11 11.17 +08%

39

Total Sales (in million)2013-14 2012-13 % Growth

Dot Matrix Printer 0.19 0.27 -30%

Ink Jet Printer 1.05 1.08 -03%

Laser Jet Printer 1.82 1.57 +22%

Total Printer sales 2.96 2.93 +05%

FORECAST, ALL INDIA,URBAN

40

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prepared forprepared by. 02 industry validation of the market figures 03 01 04 itops longest running...

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