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Friday, 29 August 2008 10:10 |
Intel Corp, the largest computer chip maker, announced on Thursday it would launch its low-cost computing devices to further penetrate the computer market in India. The company plans to target first-time computer users in India to drive its growth on the low-margin-high-volume business model.
 Intel plans to launch Atom processor-based computer devices starting from Rs 5,000 in "the next few months." These devices will work as central processing units and carry out all the functions of a normal computer. However they will not include a monitor and users will have to shell out few thousands for those. Atom will launch low-cost internet devices and NetBook computers to revive the slowing demand for computers. Its target will be first-time internet users and children for basic computer functions such as listening to music and surfing internet etc. Intel's Atom-based devices are already being offered by Acer, Asus, HCL, Lenovo, Intex, Novatium, Wipro and Zenith etc.
Intel has also signed a memorandum of understanding with BSNL to jointly market in India broadband internet with wireless solutions including WiMax. The companies will work together to create standards for WiMax and other applications in India and to develop a pilot WiMax solution for rural markets.
Separately, home-grown PC-maker Zenith Computers also announced its foray into the low-cost computer market to target new customers. Zenith's low-cost desktops and laptops are priced between Rs 11,990 and Rs 14,990 and will work on Windows Vista and XP operating systems. "People need a product at all price points and we are providing that... we are not restricting ourselves to this," Raj Saraf, chairman and managing director, Zenith, told DNA Money.
The company maintained that margins are same even for low-cost computers in the percentage terms. "It is on the absolute level that they differ for high-cost and low-cost PCs," he said.
Microsoft has partnered with Zenith for the computers, and the PC maker plans to sell 1,00,000 units by March 2009. Asked if computer prices could go down further, Saraf replied, "I don't think so but if duty comes down, it is a possibility."
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