A Barrier Breached

Picture this: while a top-of-the-line multimedia PC in the Indian market

costs Rs 65,000, one can buy a notebook and even a Wi-Fi-enabled laptop at Rs

50,000. With the decreasing price differential and changing preferences and

lifestyle, the notebook market is heating up. According to IDC, last year’s

notebook sales stood at 48,666 and this year’s figure for the last three

quarters stands at 57,762 and still counting. According to estimates, Q4

included, this number can be well beyond 70,000. These latest numbers suggest

that the notebook market is on a roll.

One can strike a decent deal for Rs 50,000, a Wi-Fi ready PC, which was

unthinkable in the last quarter. Does it hint at a price war in the laptop

market, which is traditionally a high-margin segment, given that AMCs are also

bundled along? Perhaps a quiet yes is the answer. Acer dropped its prices, HP

too followed suit (matched Acer’s sub-Rs 50,000 mark), and recently Hyundai

also came to India with a sub-50,000 option.

In the recent past, India has seen many new players in the notebook space:

Hyundai, PCS, BenQ and Millenium to name a few. The market is also witnessing

the advent of build-to-order (BTO) notebooks with companies like ACi and

Millenium setting up laptop assembling units. In fact, ACi has announced a

laptop for the education segment for a meager Rs 20,000. On the sub-Rs 50,000

laptop launch, HP India PSG V-P Ravi Swaminathan said, "The notebook market

in India is expected to grow by 50—60% and our aim is to have a dominating

presence in that market. Consider this–the ratio of desktops to notebooks in

India is 1:30 and the aim to change the equation in India can be catalyzed with

a sub-Rs 50,000 notebook launch."

Drivers for this accelerated pace, according to market experts, are the

lowered hardware prices that are decreasing at 25% year-on-year, and aggressive

channel pricing. The buying behavior is also witnessing a paradigm shift.

Lifestyles and business needs are changing. The market drivers for this new line

would be people on the move, those who want to stay in touch and need

information at their fingertips to make informed business decisions.

Corporates are using notebooks in the middle-management levels. Some home

users are also considering buys with lower prices, and cheaper upgrades.

SHWETA KHANNA in New Delhi