Digital projects driving India's commercial tablet sales

Strong growth in the commercial segment is helping drive marginal growth in the Indian tablet market, despite a declining consumer segment.

The latest IDC figures show 722,000 tablets were shipped in the second quarter of 2017 – up 2.9% on the previous quarter.

The consumer segment saw a 13.8% quarter on quarter decline in Q2, resulting in a steep 26.8% year on year drop in total shipments as the retailers felt the impact of the implementation of the goods and service tax.

However, Celso Gomes, IDC India associate market analyst for client devices, says digital projects across government and education sectors are driving verticals for the growth of the commercial sector.

"Vendors have arrayed their portfolios and shifting their focus to target these verticals to remain relevant in the category," Gomes says.

Among the companies capitalising on the commercial segment are Lenovo, which jumped into first place in the market with 21.8% market share on the back of 12.6% quarter on quarter growth. More than 80% of the vendor's shipments in Q2 were driven by commercial projects delivered to government, education and very large enterprises, IDC India says.

Samsung dropped back to second place but maintained the shipments volume of the previous quarter. It's stability was also driven by the gaining share in the commercial sector, especially government and enterprise, despite losing volume in the consumer segment.

Third placed Datawind, which continues to have the declining consumer segment as its key focus, saw its share drop two ercentage points in the wake of a 9.4% decline in shipments.

iBall, which also has a strong consumer focus, saw its shipments for the quarter drop 9%, however, IDC India says the vendor is expected to gain traction in the commercial segment in the coming quarters as it has started venturing into commercial projects, particularly in the government sector.

Apple took fifth spot with 49.6% year on year growth, driven by a refreshed product portfolio in the sub-$500 price category.

Jaipal Singh, IDC India senior market analyst, says while consumer shipments are expected to improve in the second half of the year as the market prepares for the festive season, it's the commercial segment which will continue to be a key focus.

"Vendors will continue to focus on commercial deals to channelise the digitisation wave in the country," Singh says.