Strengthening Its Foothold

In a fast growing economy, there is a huge demand for affordable mobile
computing. Indian consumers are getting more inclined towards notebook PCs. The
consumer notebook market in India currently estimated at 8,00,000 units, is
expected to increase to 9,00,000 units by FY'10. Undoubtedly, the ultra-thin
models are gaining a strong foothold in the regular market demands of the
customers.

Trends and trend-setters

Johnny Lin, Manager-National Product, Sales and Marketing, Micro Star
International (MSI) India said, "The Internet connectivity environment will be
the key factor to influence laptops growth and the wireless broadband services
will be a key driving factor in 2010."

Besides mobility, sleek design, enhanced security features and other in-built
accessories in notebooks, affordability is the most important factor, especially
in a developing country like India. Giving reasons about the same, Gautam Ghosh,
Country Manager, ViewSonic Technologies, India said, "The economical notebooks
are fueling the growth of global notebook PCs, and there is a huge potential for
budget laptops in India as well. The launch of Windows 7 is expected to create
greater demand among the users for new PCs. This will lead to a fast-pace growth
in the notebook segment, as first-time customers prefer laptops to desktops."

According to Ghosh, higher resolutions, full HD wide screens,
multi-functional solutions and integration of other computing peripherals will
continue revolutionizing this segment. With consumers making a shift from
15.6-inch/17-inch screen sizes to 18.5-inch screen size, Ranjit Singh Yadav,
Director-IT & Telecom, Samsung India Electronics sees up-sizing as one clear
trend. According to R Manikandan, Business Group Marketing Head-Business
Solutions, LG, "Innovative features, aesthetics/color options, and continuous
price erosion witnessed in this category, energy and space savings have been the
primary catalysts for driving LCD monitor sales in the last few years."

Mukesh Gupta, Director, TPV Technology, AOC sees white LED (WLED) as the next
big thing. "It is now replacing the conventional light source of CCFL. Monitors
might soon become an all-in-one device to cover up for TV, signage,
entertainment and security purpose. The player who will adapt these innovations
quickly will be the one to lead the market. Technically the focus will be on
maximum functionality and green wisdom, to save our planet," he predicted.

Post-recession, Stanley Wu, Country Head-Eee PC and Notebook Business, Asus
India shared, "Buying pattern of the consumers suggest that a major chunk of
them preferred Eee PC netbook rather than a full-fledged notebook, depending on
their computing needs," he added.

Netbooks vs notebooks

According to Ghosh, "Netbooks focus on net-based tasks such as browsing,
reading and writing e-mail or using Web-based applications. The storage option
for the netbook can be the pen-drive, whereas notebooks are sophisticated
portable computers with proper optical storage devices. As netbooks are capable
of running MS Office, it is quite handy for writers, editors or teachers. The
price too pledges it to be the choice of many. Since, they focus on different
users therefore, the market seems to be least affected with the other," he
elaborated.

Wu further shared, "Netbooks are light, have a great battery life, are easy
to carry and affordable. Notebooks offer powerful computing, multiple
applications set-up and a replacement for desktops. Also a significant
difference is the absence of an ODD in a netbook that makes it a bit cumbersome
to install third-party applications and software. Most netbooks come
pre-installed with all the required applications."

"Because of lower processor speeds as compared to notebooks, multi-tasking
can be a challenge with netbooks. While the average price of a netbook is around
Rs 20,000-24,000, the price of an entry-level mainstream notebook is still
closer to 30,000. A netbook will seldom provide customers with features of a
full-fledged notebook," noted Diptesh Ghosh, Category Head-Consumer Notebooks,
HP PSG India

TFTs vs CRTs

Initially, CRTs had an upper hand, especially in the upcountry markets.
Consumers with limited budget and lesser gaming, multimedia and entertainment
requirements preferred CRTs. However, now the pattern has changed, with the
decreasing cost differences between a TFT-LCD and CRT monitors. Sanjay Kumar,
Deputy GM-PC and Mobile Business, Intex Technologies, India shared, "Intex
monitors are available in more than 500 B and C-class towns in India, and I must
say that the upcountry genre is showing a very good response for 15 and 17-inch
TFT-LCD monitors. Intex monitors, with inbuilt TV tuner and wall mounting
features, are doing really well in the metros. Moreover, the price variation
between TFT-LCD monitors

and CRT ranges from Rs 3,000-4,500."

Other factors that drive the vendors to invest more on TFT-LCD business
include promising features of TFT-LCD monitors, such as better technology,
aesthetic flat screen looks, space saving, less radiation emission and less
electricity consumption.

According to S Rajendran, Chief Marketing Officer, Acer India, the trends
indicate that market is moving on to 18.5-inch form factor (FF) as main stream,
and there is a lot of demand for higher FFs. He added that there is also
increasing demand for TFTs with HD, HDMI interface and sleeker form factors.

Vakul Bhatnagar, COO, eSys India sees a demarcation in terms of the size of
the monitors sold. "In upcountry markets, 18.3 or 22-inch TFT-LCDs are not
available at times, and so customers tend to buy a TFT-LCD with 15.6 inch or
17-inch screen. Due to the recent economic times, a fall in the prices makes it
convenient for customers to buy TFT-LCD monitors instead of CRTs. However, they
can still save money if they go for a brand made in Taiwan instead of any
popular brand," he added. Talking about the small cities, Deepti Ray,
Director-Sales, Microstar shared, "We are noticing that customers in B, C and
D-class cities are becoming more discerning; they prefer to go for LCD monitors
instead of CRTs. The CRT vs LCD ratio is currently 60:40, and will see a drastic
change by 2011."

What next?

Sony India's marketshare in 2008 was 10 percent and it aims to reach 20
percent by FY'10 with the launch of the new VAIO models. Sachin Thapar, Division
Head-IT Business, Sony India shared, "We plan to expand our channel network to
1,000 counters by FY'10 across 200 cities, up from 500 sales counters in FY'08.
We will also increase VAIO exclusive brand shops 20 counters by FY'10. We will
focus on our above-the-line and below-the-line activities that involve print and
electronic media, online, outdoor and shop-front."

Samsung expects a consolidation in the market. "LCD monitor segment might
cater to specialized applications and needs. We will be catering to both the
segments though," shared Yadav. "We currently have a network of about 25 dealers
and distributors, and by the end of FY'10, we aim to have about 75-100 partners.
Two years down the line, we hope to be a Rs 200 crore company," shared Vinod R
D'Souza, Director-Operations, Microstar.

Johnny Lin of MSI feels that the company has to strengthen its brand
awareness among consumers and channel. Hence it has planned to improve this by
investing more funding in the Indian market through 2010.

RACHNA GUPTA

rachnagu@cybermedia.co.in