The Indian market for tablets is likely to rebound with a 4 to 10 percent growth in 2024, as Chinese smartphone makers intensify focus on booming demand for 5G adoption and rising interest in applications for work, education and entertainment.
Analysts are bullish that the 5G-enabled new models will be the main growth engine for revival of the tablet market this year from a 16 percent decline in 2023.
Brands like Samsung, Apple, Lenovo, and Acer dominate India's tablet market. Chinese smartphone brands like Xiaomi, Realme, OnePlus, and Honor are now refocusing on this segment and are expected to dominate the supply curve. Analysts remain upbeat on their ability to replicate a successful strategy of creating a complete end-to-end device ecosystem, a model perfected by Apple and followed by Samsung. Unlike bigger rivals, a large chunk of Chinese manufacturers are focused only on the consumer segment and therefore are expected to pursue aggressive expansion of market share, they feel.
“For new vendors like Realme, Xiaomi, and OnePlus, they wanted to expand their product portfolio and it's easy to venture into tablets as they are into smartphones. They have the necessary infra, channel presence, and a relatively decent understanding of the consumer market. Samsung, Lenovo, and Apple are veterans and continue to bet big on the Indian market,” said Bharath Shenoy, senior research analyst at IDC India.
“The tablet category is picking up in India as consumers seek an additional device for entertainment and productivity requirements," Muralikrishnan B, president of Xiaomi India, told Moneycontrol.
“This category will grow for us," Realme’s business strategy lead Tarini Prasad Das told Moneycontrol separately. "As a brand, we will focus on tablets and audio products under the Internet of Things (IoT) portfolio strategy.”
Notably, during the Covid pandemic, the tablet market recorded growth due to higher content consumption and creation, and an increase in use cases like e-learning and video communication, which drove the demand for larger-screen devices. However, after the pandemic, the demand for tablets decreased due to the reopening of schools and colleges. In 2023, the commercial segment also declined sharply as a few government deals were delayed or cancelled.
“As a result, the overall tablet market declined 16 percent year-on-year in 2023. The decline in tablet volumes in 2023, apart from the reopening of schools and colleges, can also be attributed to the macroeconomic headwinds causing overall consumer sentiment to fall, besides lengthening replacement cycles. But the market is projected to grow 4 percent in 2024,” Tanvi Sharma, research analyst at Counterpoint Research, told Moneycontrol.
Sharma said that the enterprise and education segments are expected to show growth with AI being the catalyst. “Government tenders will also play a significant role in driving the volume.”
CyberMedia Research (CMR) forecasts a steady 5-10 percent growth for the tablet market in 2024, fuelled by a wave of technological advancements.
“Driven by remote work and learning needs, consumer demand for tablets surged during the pandemic. While it has stabilized post-pandemic, it remains robust. Tablets continue to be relevant in today's hybrid work and learning environments, and for content consumption,” said Menka Kumari, analyst in Industry Intelligence Group (IIG) at CyberMedia Research (CMR).
“The use cases for tablets have expanded as they become more powerful, especially with the introduction of 5G. They prove to be advantageous devices for on-the-go scenarios such as commuting, where individuals may need to present or work on presentations or content,” said Bharat Shenoy of IDC India.
The premium tablet segment - ranging at Rs 20,000-30,000 - experienced a remarkable 47 percent sequential jump in the January-March quarter, indicating a clear shift towards high-end devices. Both Sharma and Kumari feel that smartphone brands see an untapped opportunity in the tablet market, suggesting more action in this space. They say that this reflects a strategic shift towards an ecosystem approach, where brands aim to be one-stop shops for tech needs, competing directly with established tablet manufacturers.
Samsung was the top tablet maker with a commanding 37 percent market share, followed by Apple and Lenovo with 21 percent and 17 percent share, in the January-March quarter of 2024. Xiaomi's growth skyrocketed by 948 percent year-on-year to 12 percent for the fourth spot, while Realme’s share remained unchanged at 7 percent, as per CMR data.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
