Will low-cost tablets like Aakash survive competition?

NEW DELHI, INDIA: Call it India's pertinent need or government's e-India rhetoric, a new breed of ultra-low cost tablets is in. But ironically, it isn't the answer to the country's vast digital divide.

Technology analysts are of the opinion that ultra-low cost tablets with non-optimal features are poised to dampen the segment as individuals are looking for rich experience and are ready to pay few extra bucks.

DataWind's ultra-low Aakash has fuelled the low-cost tablet market, which is now flooded with many manufacturers like Micromax, BSNL-Pantel, GoTech, WishTel, Kobian iXA and Karbonn. However, the fate of these vendors is uncertain given the not-so-encouraging sales of tablets.

However, tech analyst and editorial advisor to CyberMedia Prasanto K Roy feels that ultra-low cost tablets are a crucial part of the technology penetration story for both the general public and for education. "The high-end tablets have achieved smaller numbers, with a total shipment of just 3 million last year and to take this up to the impressive figure, India needs low-cost tablets," he said.

Roy believes that the feature-set is not a big differentiator when it comes to ultra-low cost devices such as Aakash. The response to the Aakash for instance, he said, has been overwhelming, but its availability has become an apparent painpoint. "Not all these players may survive, but Aakash has clearly helped create a market for the ultra-low cost devices in Rs 5-10k range," he added.

Intel South Asia director (marketing) Sandeep Aurora believes that penetration of computing devices is significantly low in India. "A connected multi-device play will emerge in India and low-cost devices will be part of that mix," he said. Aurora said that there is a need to create a pool of digitally literate citizens who can use these devices in a way that augurs their productivity leading to personal growth.

"The Indian market offers enough opportunities for multiple manufacturers to co-exist. The need of the hour is to create an environment where people are comfortable with using different kinds of devices. This will enable substantial growth in the size of the market providing ample opportunities for all," he said. In a digitally-literate India, Aurora feels that citizens would be able to harness the power of technology to get better access to education, healthcare and public services.

AMD India country head for consumer business Chandrahas Panigrahi feels differently. "Tech savvy Indians are more conscious about value than the price," he opined. A major limitation of these low-cost devices, he said, is that they don't facilitate content creation including graphic compute. "While the low-cost tablets may not be the primary device, it will end up as a secondary device," he added.

Panigrahi says that it would not be fair to say that ultra-low cost tablet manufacturers would find it hard to sustain, but their success would hinge on the value they offer and its relevance to their target audience. "Even in low-cost tablets, consumers expect good battery life, multi-tasking capabilities and seamless integration of basic applications," he added.