INDIA EYES TABLETS SEGMENT IN MOBILE PHONE MARKET

After making inroads into the phone market with a range of low-cost dual-SIM phones and smartphones, Indian handset brands such as Karbonn and Olive are now training their eyes on the tablet segment. Their main USP – pricing.

While Gurgaon-based Olive Telecom has launched a tablet for Rs 3,500, Karbonn is launching its sub-Rs 10,000 device in April. This adds to the devices launched by the likes of NotionInk and the Rs-2,250 Aakash tablet by Datawind.

“The tablet will be available in three sizes – 7 inch, 9 inch, and 10,” Mr Sudhir Hasija, Chairman, Karbonn, told Business Line, adding that he hopes to sell about 40,000 tablets a month – a target not even Apple's iPad can boast of in India. Other brands such as Lava Mobiles have similar plans, and Micromax plans to launch Android-based tablets shortly.

Mr Arun Khanna, Chairman, Olive Telecom, said, “At Olive, it has been our constant endeavour to create products that break new grounds in technology and pricing. Tablets from Olive will have high affordability.”

3G AND WI-FI

While no one can question their supremacy on pricing, some of the brands are betting on better 3G and W-Fi coverage before bringing their products into the market. “We have the technology ready but will be waiting for the rollout of 3G across the country,” said Mr S.N. Rai, Co-founder and Director, Lava Mobiles, which is expected to launch its tablets soon.

Analysts reckon that lack of Wi-Fi penetration and pan-India 3G rollout may dampen the tablet market. “Lot of success for Indian handset makers came from the Tier-2/Tier-3 cities which won't be the case with tablets because Wi-Fi penetration isn't very high and 3G is still expensive and not pan-India yet. Also, there are no enablers like data plans,” Mr Vishal Tripathi, Principal Research Analyst, Gartner,

According to him, Indian companies saw roaring businesses with mobile phones since they were a necessity and it was their first experience to Web browsing.

“This won't be the case with tablets as it is still a good-to-have and not a must-have,” he pointed out. “Also, with ultrabooks coming in, tablets will face competition from that end as well,” Mr Tripathi said.

Mr Tripathi reckons that despite the low price of a tablet, it won't be as successful as mobile phones as they will not be usage driven. “Tablets have more of an entertainment factor, and mobile phones can also be used for SMS and calls, even if not for Web browsing,” he explained.

But phone makers are not holding off their plans and want to give a cheaper option to Apple's iPad and Samsung's Galaxy Pad. Mr Ajay Bagga, Director - Sales, Olive Telecom, said ”In order to reach out to the masses countrywide, we are establishing a world-class distribution network for tablets.”

source@ The Hindu Business Line