Posted by : Unknown Thursday, September 8, 2011

The iPad costs Rs 28,000, the Galaxy Tab Rs 26,000 and the PlayBook Rs 27,000. LACS, which was so far into information technology distribution and manufacture of coated paper, is not the first Indian company to try and crack open this market by offering tablets cheap

Will tablets follow the mobile handset pattern? Long dominated by multinationals like Nokia, Samsung and Motorola, and later raided by RIM's BlackBerry, Apple's iPhone, and various HTC models, this market was turned on its head by a clutch of Indian manufacturers who based their operations in countries like China and Taiwan, and pulled off a coup.
As the market share of the Indian manufacturers, led by Micromax, Lava and Spice, climbed from zero in 2008 to more than 20 per cent in 2010, market leader Nokia lost ground, with its share falling from 46 per cent to 35 per cent in the same period.
What gave Indian companies the edge was a rich list of features and long battery life for their products, and low prices. Should we brace for an encore in tablets? "The tablet market is clearly going the mobile handset way," says Naveen Mishra, lead telecom analyst at Cyber Media Research. He believes the market adoption of Indian tablets will speed up once Broadband Wireless Access takes off. Tablets are all about use of data on the move.
The tablet market is at 100,000 pieces a year and expected to grow at 35 per cent, say current estimates. "Beetel is trying to break the affordability barrier," says Vinod Sawhny, Executive Director and Chief Executive Officer, Beetel Teletech. Jain of LACS is trying to do exactly the same, and more forcefully. He believes that many people in India aspire to owning a tablet - make it more affordable and they will come in droves. "At Rs 6,000-7,000, our products will have a much larger multiplier effect," says Jain. More so because he has tied up with finance companies, so customers can buy his tablet on a 12-month instalment scheme.
Sawhny and Jain both believe that there is a large untapped market in the rural and semiurban space. The lowering of the entry price, therefore, would be critical, as will be the world of applications that these companies can open up to the user.
They had better hurry, because Micromax and Lava are getting ready to launch their tablets, too

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