2009-10 Annual Review

8/2/2019 2009-10 Annual Review

1/35

IT Industry Performance Annual Review: 2009-10

Press Conference

New Delhi: July 28, 2010


2/35

ITOPS The largest and longest IT hardware tracking study in India

Tracking the Indian IT Hardwaremarket for over 12 years.

Completed 26 successful roundsof the study.

Conducted in 17 cities of India.

Findings projected to All India urbanMarket.

Covers a sample of8,500 + Households6,500 + Establishments

Conducted twice a yearH1 FY: Apr to Sept.H2 FY: Oct to March

The Longest The Largest


3/35

Data is collected after the last mile

Factors in Market/customer

sentiments

ITOPS The only demand study on Indian IT hardware market

Complete & Accurate Profile of the buyers.

Identification of key market trends and emerging segments helps in identifying marketexpansion opportunities.

Captures changes in users perspective to give cues for innovative marketing.

Gauge buying and usage behavior to give cues for product development.

Accurately gauge the extent of replacement and up gradation taking place.


4/35

ITOPS Edge

Accurate data

A two pronged approach involving primary surveys among end user and validation of thedata from vendors and channel ensure accuracy of the findings.

Equal focus on all segments

Equal focus given to Household, SOHO and Establishment segment, thus giving a

complete understanding of the entire marketplace.

Actionable insights

Reports can be customized as per Key Business Matricesto provided the much needed

action ability of the research findings.

Regular market feedback

Bi-annual reports along with the quarterly channel feedback provide a regular

assessment of the dynamic Indian IT hardware market. It also provides cues for

necessary course correction if required.


5/35

Manufacturing/ factory/ Warehouse Office Outlets Government

< 10 employees (Small establishment) 11-50 (Medium establishments) 50 + (Large establishments)

Principal Activity defined No. of employees defined

ITOPS Sampling & Projections

Household

Using SEC A-C household population as obtained in the National Readership

Survey the largest household survey in the countryEstablishment

No framework for sampling and projection were available

Thus, a new framework called Ace Grid was developed by the ITOPS team

This Grid stratified the establishments by Principal activity performed at theestablishment classified by number of employee.


6/35

ITOPS Comprehensive product coverage

Desktop PCs

Notebooks Server

Thin-Client Workstation

1.Computing products

DMP

IJP LJP

MFD

2.Printers

UPS, Keyboard, Monitor

LCD projectors, Webcam Scanner, Zip Drive

OA (FAX, Photocopiers)

3.Peripherals

NIC, Hubs, Modems

LAN

Intranet/Extranet/Internet

Wi Fi

4.Networking Products

SAN

NAS

DAS

5.Storage

Packages

Customized

6.Software


7/35

And the findings are..


8/358

Total PC (Desktops & Notebooks) sales: 2004-2010

CAGR 2004-10: 16 %

Growth over 2008-09: 18 %

Units 3,809,724

5,046,558

6,341,451

7,344,3066,796,107

8,034,556

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10


9/359

Total PC (Desktops & Notebooks) Quarterly sales

FY 2009-10: Sales lowest in JAS 2009, sales improved in JFM 2010 by 38% (Qon Q)

Units

2,076,177

1,615,9991,436,125

1,668,286

1,996,026

1,720,898

2,022,701

2,294,931

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

AMJ 08 JAS 08 OND 08 JFM 09 AMJ 09 JAS 09 OND 09 JFM 10


10/3510

Notebook (including net books) sales: 2004-2010

Annual sales increased 65% compared to 2008-09; CAGR: 70%

Over 185K Net-books sold in 2009-10

H1/2009-10 accounted for 44% of the consumption, while H2 for 56%

Households accounted for 56% of the market growing at 83%, Businesses

accounted for 44% of the market growing at 47% on an annual basis

Units

177,105431,834

850,860

1,822,139

1,516,459

2,508,564

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10


11/3511

Notebook sales: City-spread

43%58%

69% 75%

29%

10%

6%

7%7%

4%

47%36%

24% 18%

68%

0%

20%

40%

60%

80%

100%

2005-06 2006-07 2007-08 2008-09 2009-10

Top 4 Next 4 Rest of India

Consumption in top 4 metros grew by 173%, rest of India by 48% , however

consumption in Next 4 cities declined by 16%.


12/3512

Notebook sales in Businesses & Households

Overall Notebooks market grew by 65% in 2009-10

Households accounted for 56% while Businesses accounted for 44% of the Notebooksales in 2009-10

Consumption in Households grew by 83% and in Establishments by 47%

Units

155,094376,577 532,374

1,027,197746,699

1,098,779

22,01155,257

318,486

794,942

769,760

1,409,785

0

500000

1000000

1500000

2000000

2500000

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

HouseholdsEstablishment

Units


13/3513

Notebook Consumption in Businesses - by employee size

%

Units

Overall consumption in the business increased by 47%

Consumption in large and small enterprises increased by 102% and 72%

respectively, in medium enterprises the growth was flat at 1%.

21% 31% 19% 28% 18% 21%

27%22%

25%29% 50% 35%

52% 47% 56%43%

32%44%

0%

20%

40%

60%

80%

100%

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

Lar e Medium Small


14/3514

Profile of Notebook buyers: Principal activity of theestablishment

%b

uye

rs

Sales in Establishment: H1/2009-10 accounted for 39% while H2 for 61%

Consumption in offices grew by 73% and in factory, & outlets segments it grew by

1% & 17% respectively.

23%10% 5% 8% 5% 1%

70%81% 88% 84%

62% 82%

7% 9% 6% 7%

13%

12%

1% 1% 2%

20%

5%

0%

20%

40%

60%

80%

100%

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

Govt. Locations Outlets Office locations Factory locations


15/3515

Desktop sales: 2004-2010

3,632,619

4,614,724

5,490,591 5,522,1675,279,648

5,525,992

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

Growth over 2008-09: 5%; CAGR 2004-10: 9%

H1/2008-09 accounted for 47% while H2 for 53% of the desktop sales

Units


16/3516

Desktop Market: Share of Indian, MNC & Informal

MNC Brands accounted for the largest share, sales grew by 7%

0%

20%

40%

60%

80%

100%

2005-062006-07

2007-082008-09

2009-10

28%23% 22%

18% 21%

35% 39% 45% 51% 52%

37% 38% 33% 31% 27%

Informal

MNC

India


17/3517

Desktop sales: City-spread

51 5460 65

68 61

11 138

12 78

38 33 3223 25 31

0%

20%

40%

60%

80%

100%

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10


Consumption in Top 4 metros increased by 30%, in next 4 by 21%, while inother smaller towns it declined by 61%.


18/3518

Desktop sales in Businesses & Households

3,632,619

4,614,724

5,490,591 5,522,1675,279,648

5,525,992

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

Home Business Total DTPs

Desktop market increased by 5% over 2008-09

Consumption in Households grew by 30% while that in Businesses declined

8%

Units

28% 25%

72%

74%

26%

75%

40%

60%

42%

58%

34%

66%


19/3519

Annual Desktop sales: Business by employee size

22 2412 18 18 15

31 28

18

25 2742

47 48

7057 55

43

0%

20%

40%

60%

80%

100%

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

Large Medium Small

Overall sales to the Business segment in 2009-10 Declined by 8%.

However, H2 2009-10 signaled recovery for this segment as the sales grew

by 25% during this period over the corresponding period in last year.

Sales to small and large enterprises declined by 24% and 28% respectively,

while that in Medium enterprises grew by 43%.

%

Unit

s


20/3520

Profile of Desktop buyers: Principal activity of theestablishment

%b

uye

rs

Sales in Establishment: H1/2009-10 accounted for 43% while H2 for 57%

10% 11% 3% 5% 6% 6%

79% 74% 84% 81% 77% 81%

7% 12% 7% 6% 7% 4%

3% 3% 6% 8% 10% 9%

0%

20%

40%

60%

80%

100%

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

Factory locations Office locations Outlets Govt. Locations


21/3521

Profile of Desktop buyers in Households by Socio-economic class

%b

uyers

Households consumption: H1/2009-10 accounted for 53%, H2 for 47%;

Overall consumption grew 30% over 2008-09

Consumption in SEC A remained flat, while that in SEC B & SEC C grew by

40% and 72% respectively.

51% 55% 44% 43% 39%30%

28%29%

36% 39% 39%42%

21% 16% 20% 18% 22% 29%

0%

20%

40%

60%

80%

100%

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

SEC A SEC B SEC C

%

Unit

s


22/3522

Server sales: 2004-2010

49,165

89,161 90,189

122,178 119,591

101,827

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

Annual sales declined: 15%; CAGR (2004-2010): 3%

Units


23/3523

Server sales: Business by employee size

4435

2237 38 42

3439

23

3727

42

22 26

55

2635

16

0%

20%

40%

60%

80%

100%

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

Large Medium Small

Overall sales declined by 15%

Growth in H2 2009-10 over H2 2008-09: 14%

Sales to small and large enterprises declined by 6% and 61% respectively,

however in medium establishments it grew 32% in 2009-10 over the last year.

%U

nits


24/35

24

Server sales: City-spread

3648

58 52 51

75916

726

6

655

36 3522

43

19

0%

20%

40%60%

80%

100%

- - - - - -


Consumption in Top 4 metros declined by 62%, It declined 15% in next 4 citiesand grew by 25% in the other smaller towns and cities.

%

Unit

s


25/35

25

Networking products sales - Establishments

In 2009-10, NIC market declined by 12% on account of slower Desktopofftake among the Establishments.

Modems & Hubs registered a growth of 18% & 2% respectively.


26/35

26

Printers DMP, Inkjet & Laser

2009-10 over 2008-09:

Total Printer sales registered a growth of 6%

Consumption of Laser printers & Inkjet printers grew by 11% & 8%

respectively while that of Dot Matrix Printers declined 3%

Units

1,721,7891,493,507

1,600,592 1,617,656


27/35

27

UPS consumption: Yearly trend

2009-10 over 2008-09:

UPS Sales registered a growth of 53%, driven by the strong sales of DTPC among theHousehold segment.

Household consumption accounted for 70% of market, whereas Businesses accounted foranother 30% in terms of Units.

Units


28/35

28

Sales of other peripherals

U

nits

Market for Keyboards and Monitors grew by 8% & 5% respectively over2008-09.


29/35

29

Monitor market by size

Overall growth over 2008-09: 5%

Growth in consumption of 20/21, 17 by 9% & 12% respectively; decline in consumption

of 14 by 30% .

Units: 5,754,091

2009-10

Units: 5,490,425

2008-09


30/35

30

Active Internet entities: March10

(Entities are establishments/individual with internet connection; an entity may house/ be multiple user/s)

Overall entities with internet grew by 17% over March 2009

Businesses accounted for 26% of the entities growing 11% while Householdsaccounted for 74% growing 19%

000

Units

6511,127

1,4561,848

2,504 3,127

4,124

6,009

7,200

8,600

10,068

0

1500

3000

4500

6000

7500

9000

10500

Mar

'00

Mar

'01

Mar

'02

Mar

'03

Mar

'04

Mar

'05

Mar

'06

Mar'

07

Mar'

08

Mar'

09

Mar'

10

Entities


31/35

31

Internet penetration: March 2010

Business Segment Home

Overall (17 Cities) 53% 21%Top 4 Metros 55% 25%Next 4 Metros 46% 15%Other Towns 39% 14%

SEC A - 38%

SEC B - 17%SEC C 9%

Internet Penetration by Town class and Socio-Economic Classification (SEC) among17 Cities

Internetpenetration by

Town class

Internetpenetration amonghouseholds by SEC


32/35

32

Mode of Internet access in Businesses: March 2010

Internet connections -Contribution to the totalby Access type

March 2010

Dial up10%

ISDN

11%Leased line

9%

DSL/Cable Link

62%VSAT

1%

Data Card

5%Others

2%


33/35

33

The Market of 2009-10 Vs 2008-09

Total installs Total Revenue (in Rs Crores)

ProductApril 08 March

09April 09 March

10% Growth

April 08-March09

April 09-March 10

% Growth

Computers

Desktop PCs 5,279,648 5,525,992 5% 10,325 11,267 9%

Notebooks 1,516,459 2,508,564 65% 5,886 9,577 63%Servers 119,591 101,827 -15% 1,886 1,836 -3%

Printers

Dot matrix 393,951 383,597 -3% 263 257 -2%

Inkjet 751,683 812,310 8% 155 177 14%

Laser 472,022 525,882 11% 594 660 11%

Line 5,274 4640 -12% 60 54 -10%

Other Peripherals

Key boards# 5,333,717 5,756,923 8%

Monitors 5,490,425 5,754,091 5%

UPS systems# 1,518,433 2,324,480 53%

Networking Products

Network Interface Card# 3,912,191 3,454,721 -12%

Hub# 159,178 161,602 2%


34/35

34

The expected Market for 2010-11

Total Sales

2010-11 2009-10 % Growth

Desktops 6,200,000 5,525,992 12%

Notebooks 3,150,000 2,508,564 26%

Total PC 9,350,000 8,034,556 16%


35/35

Thank you!

Date post:	06-Apr-2018
Category:	Documents
Upload:	noel-paul
View:	216 times
Download:	0 times

2009-10 Annual Review

Documents