India Consumer Electronics Report Q4 2012

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India Consumer Electronics Report Q4 2012

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Includes 3 FREE quarterly updates.

BMI projects that Indian consumer electronics spending will grow by about 17% in US dollar terms in

2012 to US$32.9bn, driven by rising incomes and growing affordability. However PC market growth

slowed in Q112, against a background of rising inflation and a weak rupee, which led many consumers to

defer their purchase decisions. Only nine out of 1,000 people in India own a computer, one-fifth of the

level in China. Meanwhile, Indian mobile penetration is about 57%. Another long-term driver is that 45%

of India's population is under 25. Spending on consumer electronics devices is projected to grow at an

overall CAGR of 15% through to 2016, with the key segments including low-cost mobile handsets,

colour TV sets, set-top boxes and notebook computers. Much of the growth during BMI's five-year

forecast period will be driven by growing demand from India's relatively underpenetrated rural areas.

Headline Expenditure Projections

Computer Hardware Sales: US$8.8bn in 2011 to US$9.7bn in 2012, +10.0% in US dollar terms. This

upward revision is due to analyst modification despite slower growth in Q112 as consumer demand was

constrained by macroeconomic factors.

AV Sales: US$10.6bn in 2011 to US$13.4bn in 2012, +27% in US dollar terms. The result is unchanged

from Q312, with TV sets expected to provide the most dynamic development.

Handset Sales: US$8.7bn in 2011 to US$9.7bn in 2012, +11% in US dollar terms. This figure is

unchanged from Q312, with vendors likely to increase their focus on semi-urban rural customers.

Risk/Reward Rating

India's score is 49.9 out of 100.0, putting it in ninth place in our latest Asia Central Europe Risk/Reward

Rating (RRR) table. BMI expects India to rise up the table over time owing to economic growth and the

potentially vast market in rural and semi-rural areas.

Key Trends & Developments

- In 2012, strong growth opportunities are expected across the next 200-400 smaller cities in India,

where vendors are expanding their retail and distribution presence. Around 45% of new PCs sold

in the Indian market are now shipping outside the top 75 cities. The government's policy of

providing tax breaks and subsidies for hardware manufacturers should help keep PC prices down

and support growth. Meanwhile education procurements, such as those being implemented by

Tamil Nadu state and others, will also drive volume sales.

- Tier two and tier three Indian cities also offer significant growth opportunities for handset

vendors as prices of entry-level feature phones and smartphones come down. Meanwhile, two India

Consumer Electronics Report Q4 2012

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thirds of India's population reside in rural parts of the country and the telecoms network still only

connects about 4,500 towns and cities, and 65,000 villages in the country. In order to expand

network coverage, India's mobile operators are extending their infrastructure to rural parts of the

country. This is expected to raise penetration rates significantly over the next few years.

- TV sets remain the core product in the Indian AV category, with demand for colour TV sets

estimated at about 23mn units in 2012. There is still room for organic TV set market growth

driven by first-time buyers, as household TV penetration is estimated at less than 60%. TV set

demand is projected to reach 34mn units by 2016, with sporting events helping to drive

spending. TV is so central to cultural life it has become a part of social policy, with free

distribution of sets to low income families in some states.

Executive Summary . 5

SWOT Analysis ... 7

India Consumer Electronics Market SWOT .... 7

India Electronics Industry SWOT .... 8

India Political SWOT ... 9

India Economic SWOT .... 10

India Business Environment SWOT .... 11

Asia Pacific Risk/Reward Ratings .. 12

Table: Asia-Pacific Risk/Reward Ratings, Q412 14

Market Overview .... 15

Computers ... 15

Table: Computer Sales, 2009-2016 15

Drivers ... 16

Netbooks 18

Tablets ... 19

Low-Cost PCs .. 20

Table: Total Desktop Sales .. 20

AV 21

Table: AV Sales, 2009-2016 . 21

Mobile Handsets ... 25

Table: Mobile Communications: Demand, 2009-2016 25

Consumer Electronics Industry 30

Table: Electronics Output, 2009-2016 30

Computers ... 31

Table: Computers, Sales, 2009-2016 .. 31

AV 32

Table: AV: Production, 2009-2016 32

Mobile Handsets ... 33

Table: Mobile Communications: Production, 2009-2016 . 33

Semiconductors 34

Industry Forecast Scenario .. 35

Table: Consumer Electronics Overview, 2009-2016 .... 36

Industry Developments ... 37

Government Authority 39

Macroeconomic Forecast 41

Competitive Landscape .. 45

Computers ... 45

Handsets 49

AV 52

Semiconductors 56

India Consumer Electronics Report Q4 2012

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Company Profiles .. 57

HCL Infosystems ... 57

Mirc Electronics Ltd (Onida) .... 58

Country Snapshot .. 59

Table: India's Population By Age Group, 1990-2020 ('000) .. 60

Table: India's Population By Age Group, 1990-2020 (% of total) .... 61

Table: India's Key Population Ratios, 1990-2020 ... 62

Table: India's Rural And Urban Population, 1990-2020 .. 62

BMI Methodology ... 63

How We Generate Our Industry Forecasts ... 63

Electronics Industry ... 64

Sources .. 64

To order this report:

Consumer_Electronics Industry: India Consumer Electronics Report Q4 2012

Nicolas Bombourg
Reportlinker
Email: nicolasbombourg@reportlinker.com
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