A look at the gap in digital aspirations

MUMBAI, INDIA: While the GoI has been able to mend the digital divide between the rural and urban India, there is a clear gap in aspirations where the demand for PCs and form factors are concerned.

A research commissioned by Dell India found that a majority that majority of children in tier-1 and -2 cities want tablets for personal use, while their counterparts in tier-3 and -4 cities want desktops or laptops.

The study also found that students in tier-3 and -4 cities like Mysuru, Coimbatore, Kozhikode, Vishakhapatnam and Madurai are more serious about computing compared to those in tier-1 cities. According to the study conducted across 6,000 students across 40 cities, 78 percent children from tier-4 cities use PCs to manage their class work, while 68 percent in tier-1 cities use it mainly for gaming.

The trend is pushing PC makers to concentrate on tier -3 to tier-5 cities, remarks, P Krishnakumar, Vice President, Consumer and Small Business, Dell India. “Our CEO Michael Dell believes the next billion PC purchases will come from emerging markets. We believe the next million of those purchases will come from tier-3 to -5 cities in India.”

Sanchit Vir Gogia, Chief Analyst and CEO, Greyhound Research, which conducted the research, observed that the PC is still core to content creation. “The key findings from the study were that the PC is still relevant in India and the emerging cities will drive the next phase of growth. People can use a smart phone to consume content, but they always need a desktop or laptop to create it.”

Quoting estimates from various research agencies, Krishnakumar said, “A recent study by IT hardware makers association MAIT and consultancy firm KPMG estimated India’s PC penetration at just 9 percent, compared to 60 percent for Malaysia, 50 percent for China, 30 percent for Vietnam and Thailand, and 12 percent for Sri Lanka. Considering that India has more English speakers compared to other Asian countries, the penetration is significantly low. But with the government working towards digitizing the country, the industry expects PC penetration to rise to 12-15 percent in the next two-three years.”