Dated: - 28-02- 2012

Consumer Behaviour

Submitted to: Dr. Ashutosh Kumar Submitted By:

Rajesh Mishra (2K11B24)

Punit Sharma (2K11B22) Aakash Tablet

Preface As a concept, tablets have been around for a while. So have touch screens on phones. It did take quite a while for a true convergence of hardware, software, operating systems, usability and an application ecosystem to finally come together (read as !Pad) which has paved the way for a new generation of devices in the form of today's tablets! As this nascent market grows at a breakneck Pace globally, economies of scale have started setting in already. While a number of models are available in India from global brands and not so global ones there has been very little by way of differentiation amidst all these products. While tablet adoption has largely been with consumers, uses for this device in certain verticals such as education, retail, healthcare, corporate & aviation industries prove there is a large potential for those verticals. Why do a report on the Tablet Market for India? Tablets have the potential to grow exponentially if key players in the Indian market can play to the right market forces. However, India is a complex market made more challenging with a lack of structured, actionable data (the insights and analysis needed for business leaders). What to expect from this report? This report will not only look at global trends, applications and use cases for tablets but also the current state of Indian market, challenges and the outlook for the Indian tablet market. This report will highlight the potential and opportunity in India which should serve as a strategic tool for category players. Opportunities for Tablet ecosystem in India to explode. There exist a number of potential drivers on the demand side...  Number of active internet users in India 97 Million  Number of existing PC users in India Over 52 Million  Number of active 3G subscribers in India Between 15 to 18 Million  Number of TV Households in India ~ 141 Million  Number of unique mobile device owners in India Over 540 Million  Number of unique Smartphone users in India Over 20 Million  Number of IT and ITES workforce in India ~2.3 Million  Number of Face book users in India ~36 Million

Opportunities for Tablet ecosystem in India to explode and, on the supply side  There is an App for everything NA  Touch - The new paradigm NA  Indian government's ambition for the education sector USO 35 Tablet  Number of global tablet sales in 2012 (projected) Over 110 Million  China and Taiwan based OM& driving economies of scale NA

( Source : http://convergencecatalyst.com/)

It is up to the ecosystem players to navigate through a highly fragmented retail universe, diverse consumer segments, unique consumer expectations & complex market dynamics and capitalize on the opportunity called INDIA!

(Source: http://convergencecatalyst.com/) (Source: http://convergencecatalyst.com/)

(Source: http://convergencecatalyst.com/) (Source: http://convergencecatalyst.com/) About Aakash

The Aakash is an Android-based produced by British company DataWind. It is manufactured by the India-based company Quad, at a new production centre in Hyderabad, [2] under a trial run of 100,000 units.[3] The tablet was officially launched as the Aakash in New Delhi on October 5, 2011. The Indian HRD ministry projects introduction of an upgraded second-generation model called Aakash 2 in April 2012. The Aakash is a low-cost tablet computer with a 7-inch touch screen, ARM 11 processor and 256 MB RAM running under the Android 2.2 operating system. It has two universal serial bus (USB) ports and delivers high definition (HD) quality video. For applications, the Aakash will have access toGetjar, an independent market, rather than the Android Market. The device was developed as part of the country's aim to link 25,000 colleges and 400 universities in an e-learning program. Originally projected as a "$35 laptop" the device will be sold to the Government of India at US$50 until further orders are received to obtain the $35 committed price, and will be distributed to university students for free. A commercial version of Aakash is currently marketed as UbiSlate 7+ at a price of $60. The Ubislate website accessed 2012-02-07 informs that a lakh Ubislate 7+ devices are being pre-booked each day, bookings are being taken for March, capacity for February being sold. KapilSibal has stated that a million devices would be made available to students in 2011. The devices will be manufactured at a cost of 1500 (€23 Euro) each, half of which will be paid by the government and half by the institutions that would use it. In January 2011, the company initially chosen to build the Sakshat, HCL Infosystems, failed to provide evidence that they had at least 600 million ( 60 crore) ($12.2 million) in bank guaranteed funds, as required by the Indian government, which has allocated $6.5 million to the project. As a result, the government put the project out for bidding again. In June 2011, the HRD announced that it received a few samples from the production process which are under testing. Also it mentions that each state in India provided 3000 samples for testing on their functionality, utility and durability in field conditions. The Government of India announced that 10,000 (Sakshat) tablet will be delivered to schools and colleges by late June and over the next four months 90,000 more would be made available at a price of 2500 device. Government will subsidize the cost by about 50%, so a student would have to pay less than 1,500 for the device. 35% of hardware components were sourced from South Korea, 25% from China, 16% from the USA, 16% from India and 8% from other countries. Software Development DataWind, the maker of Aakash, has announced a contest for students wherein their best applications will be embedded in the Ubislate(Aakash Tablet). Top 5 application winners will be awarded Rs. 1 Lakh each. Nasscom Foundation has partnered with DataWind and announced a contest wherein 10 NGOs will have an opportunity to win 20 tablets each, mainly to improve their operations and programme implementation. Indian Ministry of Education is releasing educational videos in conjunction with IGNOU and at sakshat.ac.in. This preparation of content is meant for students with access to the Internet, India's first law-biding Online Video Library.  DataWind is Out – There were news of tussle between Aakash Tablet manufacturer Datawind and Aakash Tablet designer IIT Rajasthan on specification of the tablet. Government was also not pleased with Datawind’s decision to sell the tablet in open market before fulfilling the first order by government for 1,00,000 tablets. Datawind had delivered 10,000 tablet to the government in first batch. In earlier story Datawind agreed to enhance processor and battery life for no additional cost. However, IIT Rajshthan wanted the enhanced specs for Aakash Tablet as rugged tablet which can withstand water and impact. Datawind come up with a price tag of around 100 dollars (USD) for rugged tablet. Now, as per latest announcement by KapilSibal, DataWind is no more associated with the project. We don’t know if DataWind can continue selling the tablet and their own enhanced version Ubislate in open market or not. From, DataWind site it seems they are still pre-booking the Ubislate+.  C-DAC and ITI are new owners of Aakash Tablet – Government has decided to rope C-DAC (Centre for Development of Advanced Computing) and state owned telecom equipment manufacturer Indian Telephone Industries (ITI) to further development of Aakash Tablet. They are given task to produce a better tablet at same announced price. As you know Aakash Tablet’s cost was close to 50 $(2250 rupees) and it was available from 1300 rupees onwards after subsidy. (http://www.aakashtablet.in/)

Features and Specifications of Aakash Tablet

. Display-Aakash Tablet has a 7 inch resistive touch screen with 800 x 480 pixel resolution.

. Operating System-Akash Tab runs Android 2.2 (Froyo).

. Processor- It has got a single core 366 MHz processor plus a HD video co-processor, 256 MB RAM and 2GB internal .

. Supported Multimedia Formats-Aakash Tablet supports Image formats like .png, .jpg, .gif, .bmp. Supported Video Formats include MPEG2, MPEG4, AVI and FLV. The Tablet also supports audio formats such as MP3, AAC, AC3, WAV and WMA.

. External Connectors-Aakash Tablet supports Mini and Full USB, has got two SD card slots (memory expandable up-to 32GB), a SIM card slot, Video Out, a 3.5 mm headphone jack support and HDMI port.

. Internet Connectivity-Aakash is a Wi-Fi 802.11 a/b/g enabled Tablet with a Web Browser having Standards Compliance, xHTML 1.1 compliant, JavaScript 1.8 compliant and safety compliance. It also offers separate software for online YouTube videos.

. App Store-Akash Tab supports more than 150000 apps to keep you entertained throughout the day.

. Battery-The 50 gram Tablet has a 2100mAh battery with a standby time of 3-4 hours. . Supported Document Formats- The supported document formats include DOC, DOCX, PPT, PPTX, XLS, XLSX, ODT and ODP. The Tablet has also got PDF Viewer and Text Editor.

The tablet is made from 800 components by Canadian company Datawind. Only 16% of the tablet comprises of Indian components. At 35%, South Korea features prominently in the list of component sources and 25% of the parts were sourced from China. The rest come from USA and other parts of the world.

Aakash in Hindi Language means ‘Sky’ and probably the device is ready to reach the same height. The main target of this tablet is students who always admired Tablets but had to murder their feelings due to lack of money. Aakash has all the basic features which are frequently used by everyone and can be easily bought by the students just by saving their pocket money for a few days. Though it is disappointing that the Tablet does not have a camera and will not have access to Android Market, we cannot expect so much at such a price. Overall the Tablet is a very good deal for everyone.

Reasons could be for failure of Aakash…!

(Source: http://convergencecatalyst.com/)