(AAPL) Tablet Manufacturers To Explore Indian Market

India becomes a major destination for almost all tablet manufacturers. Several large global tablet makers are set to explore the second largest emerging economy of the world within the next few months. Currently, India is witnessing a nationwide 3G network launch and it is on the verge of deployment of 4G LTE TDD (Long-Term Evolution Time Division Duplex) network by the broadband wireless license holders. Despite around 750 million wireless subscribers, the broadband penetration rate is a mere 2%. Wireless operators are focusing on high-margin data services, which in turn have created a huge market opportunity for tablet makers.

The global tablet king Apple Inc. (AAPL) with iPAD and Asian giant Samsung Corp. with Galaxy Tab are already in the field. In addition, Dell Inc. (DELL), Acer Inc., and Toshiba Corp. are the other early entrants in the lucrative Indian market. Motorola Mobility Holdings Inc. (MMI) and Research In Motion Ltd. (RIMM), which were once recognized as global tech giants, are also desperately trying to make solid inroads in India that may help these fallen heroes to offset some of the losses in the North American markets.

Nevertheless, we believe catering Indian market will not be a cake walk for all these large tablet manufacturers. Firstly, Indian customers are highly price sensitive. At present, price of tablets in India is within the range of $450 – $780, which several analysts consider as very high. Secondly, India itself has several home grown tablet manufacturers such as Micromax, G5, Karbonn, and Lava to name a few. Once these low cost producers will start flooding the market, the price will plummet automatically. However, this low price of tablets may enable large tablet markers to opt for volume sell.

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