PC sales to touch 12.71 million in 2012

The India PC market is expected to see sales (shipments) of 11.15 million units in calendar year 2011. An industry study by market intelligence firm CyberMedia Research expects sales to accelerate further by 14.0% in 2012, leading to sales of 12.71 million units.

The study points out that with nearly 10 million unit sales in 2010, the combined installed base of desktop and notebook personal computers in India is estimated to have crossed 52 million units as of December 31, 2010.

The current installed base of personal computers translates into one computer for every 25 Indians, doubling the per capita PC availability in just four years. It may be recalled that at the end of 2006 there was approximately one computer for every 50 Indians.

"The future growth of the India PC market will be driven by adoption of new form factors such as LED monitors in the commercial desktop space, netbooks, ultra lightweight notebooks and tablet computers in the portable space,” stated Anirban Banerjee, Associate Vice President, Research and Advisory Services, CyberMedia Research.

"These four form factors--desktops, ultra lightweight notebooks, netbooks and tablet computers--will co-exist, leveraging on the increase in reach and penetration of mobile broadband data services, content and 'apps'", Anirban further added.

The first tablet computer was launched in India in November 2010. Since then, the market saw a slew of launches from both MNC and Indian players. While models like Cisco's Cius and RIM’s Blackberry Playbook tablets are focused on the enterprise user segment, the Samsung Galaxy Tab and Reliance 3G Tab are focused on the consumer segment. (Reliance 3G Tab manufactured by ZTE, retails at Rs. 12,999 per unit).

CyberMedia Research expects tablets to become the new battleground as major MNC and India vendors and operators race to capture a share of this emerging market.

"As telecom carriers started offering 3G services in India since early 2011, the enhanced connect speeds are expected to boost usage of data services by subscribers. For tablets to become a common man's device, the data usage tariffs for 3G services need to be brought down even further.” Anirban stated.

The first half of 2011 witnessed subdued sales in the India PC market on account of lower off take by the government, public and private sector. Lower consumer demand too added to this.

This situation is expected to correct itself in the July-September 2011 quarter as the new academic year commences witnessing strong demand from the Education sector. Consumer buying is also expected to be higher in the July-December period of 2011 on account of 'festive' season buying. Demand from the domestic large and SMB enterprise segments is expected to remain healthy.

A 'wait-and-watch' buying sentiment may continue in the corporate sector due to the ongoing uncertain economic environment in the US, Europe and Japan.

The other major development with a likely impact on leadership of the PC market was HP's announcement on August 18/19 to spin off its PC business.

"HP's strategic rethink of spinning off its US$ 40 billion Personal Systems Group may be attributed to the rapid commoditisation of the PC business in absence of any major differentiator, in the last few years. While this trend impacted every player in the market, HP's PC division recorded a significantly lower operating margin compared to its other businesses in the year ended July 2011", stated Sumanta Mukherjee, Lead Analyst, Computing Products, IT Peripherals and Channels, CyberMedia Research.

"HP also failed to leverage its $1.2 billion acquisition of Palm in 2010. An unsuccessful attempt to promote devices based on WebOS not only denied HP a leadership position in the smartphones and the tablets markets, it also seems to have underlined the need for a strategic shift. Given this background and the fact that HP is still the global leader in the PC market, the call to spin off its PC business is a bold but necessary step in the right direction. It is likely to yield business benefits in the long run", Sumanta further added.

Impact on India PC Market:

While HP's top global brand status will likely mean 'business as usual' at the moment, the global announcement would definitely play on the minds of local partners. As a result, HP's India partners could adopt a cautious approach, which may not augur well for HP before the impending festive season that typically witnesses the highest consumer PC sales in the year.

"While the spoils can be shared among Acer, Dell, Lenovo and Sony, Dell is better suited to reap the most of this opportunity because of their greater exposure to the consumer space. In the long term, both Microsoft and AMD could be impacted, since HP has been a major partner for both the world's No.1 software company and the No. 2 PC processor vendor. Whatever happens, Personal Computers are unlikely to die out in India in a hurry", concluded Sumanta.

Will telecom BPO revenue to touch $2 Billion in 2012?

The outsourcing revenues from the telecom sector in India are set to grow at a CAGR of 31 percent to nearly $2 billion in 2012, says a report by Ernst & Young in a first of a kind study on potential of domestic BPO industry. The telecom industry has been growing fast in spite of recession adding around 10 million subscribers every month with a subscriber base of 375 million in 2008-09.

In 2005, Bharti Airtel, which has been growing at a Compound Annual Growth Rate [CAGR] of 41 percent in last two years, started the trend of outsourcing its call center to other global companies like Mphasis, IBM Daksh, Teletech and HTMT at $272.2 million. Since then there is pressure on other telecom providers to do the same. "This domain (telecom) has already witnessed a couple of large outsourcing deals in recent months and the trend is expected to continue," said Ernst & Young partner Milan Sheth. In 2008, Telecom revenues added upto 50 percent of the domestic BPO revenues at $661 million.

BPO is also a huge job creator for telecom industry. According to the study, in 2008 telecom BPO hired over 1,22,440 people and by 2012 this number is expected to double. Banking is the second biggest employment generator for domestic BPOs. The banking sector employed around 70,100 people in 2008 and by 2012 this is projected to go up to 2,25,900. The two sectors contribute 80 percent of the domestic BPO revenues and is expected that revenues will reach $6 billion by 2012.

According to the report the key driver for BPOs in telecom is demand for customer care and sales and marketing services.

Agencies

Can cars will talk to each other to avert accidents?

A radio technology that allows cars to 'talk' to each other and avert accidents is being tested now.

It warns drivers of potential intersection crashes, rear-end collisions and lane drift - and could be available in everyday vehicles as early as 2012.

The technology will also enable traffic flow management and optimised route selection for drivers, reducing the costs of traffic congestion and greenhouse gas emissions.

Live safety demonstrations of the technology will be held at an Australian Dedicated Short Range Communications (DSRC) industry event.

Vehicle manufacturers and state and federal government will be among industry stakeholders who will see first-hand the DSRC technology developed by Kent Town-based company Cohda Wireless.

Cohda Wireless was founded in 2004 by a group of scientists working at UniSA's Institute for Telecommunications Research.

Director of UniSA's Institute for Telecommunications Research Alex Grant said DSRC is a radio technology that combines GPS and Wi-Fi like communications to effectively enable cars to talk to each other.

"This technology essentially equips vehicles with the ability to see around corners and to predict and avoid dangerous situations," said Grant, according to an UniSA release.

Cohda has done DSRC field trials for vehicle manufacturers in the US and Europe and hopes to start a large-scale trial in Adelaide.

Agencies

China to land moon-buggy by 2012

China aims to put an unmanned buggy on the moon by 2012, local media reported, laying the ground for its greater ambitions of putting a man on the moon.

China became the third country to put a man in space with its own rocket, after the former Soviet Union and the United States. It sent two more astronauts on a five-day flight on its Shenzhou VI craft in October 2005.

China launched its third manned space mission in September, with live-to-air footage of its first space-walk captivating the nation.

Its first lunar probe, the Chang'e-1 satellite, named after a lonely goddess who lives with a rabbit on the moon and pines for her husband, finished its mission last month after orbiting the moon thousands of times.

"China will send a moon-lander and moon-buggy around 2012," the Beijing News said, citing state television.

Before the moon-lander, China will send Chang'e-2 satellite to fulfil another circumlunar mission, CCTV added.

China said its lunar mission would include three steps of "orbiting, landing and returning", but has not disclosed schedule of any manned moon mission so far.

Chandrayaan-II launch in 2012

Indian Space Research Organization (ISRO) chairman G Madhavan Nair said on Thursday that India would launch its second lunar mission, Chandrayaan-II, in 2012 and a small robot would be dropped on the moon.

"Chandrayaan-II will be launched by 2012. We will have a lander that will drop a small robot on the moon, which will pick samples, analyze data and send the data back," Nair told media on the sidelines of a Space Technology seminar here.

Already the project has been formulated for Chandrayaan-II. Talking about Chandrayaan-I, Madhavan Nair said the Moon Impact Probe would land on the lunar surface on Friday evening.
He said already 95 per cent of the mission had been completed and the total success of the mission would be known only after the remaining work was completed.

Regarding the 'solar mission' called Aditya, Nair said a satellite was intended to study solar emissions and it would be launched within two years. ISRO would also go ahead with the study of sending a spacecraft to Mars.