MNC Brands Target SMEs With Cheap Entry-level Notebooks  ( December '3,2003, FE)

In order to strengthen their base among the small and medium enterprises (SMEs), leading multinational hardware companies are introducing entry-level notebook computers priced around Rs 50,000 in India. Following this trend now is IBM India, after Hewlett Packard (HP) and Acer.

Acer and HP recently launched a sub-Rs 50,000 laptop with a Celeron processor targeting the SMEs, home-users and professionals.

Further, Acer is in the process of launching another entry level laptop with a Pentium IV processor priced at sub-Rs 55,000.

“Every hardware company including Acer, is now targeting professionals, households and SMEs for personal computers and laptops,” Acer India Resource Management-general manager Arun Bhagat told eFE.

According to Manufacturers Association of Information Technology (MAIT), the price of entry level products in the personal computer (PC) and laptop space is settled at Rs 20,000 and Rs 50,000, respectively.

“Traditionally, notebooks have been confined to the corporate sector but with the drop in prices, the notebooks are being chosen by SMEs and individual professionals,” MAIT executive director Vinnie Mehta said.

IBM India has announced the availability of entry level notebooks- IBM ThinkPad R40e, priced at Rs 54,990.

The company is targeting professionals, traders, SOHO (small office home office) individuals and also the home PC user.

The new IBM notebooks come with Windows XP Home as the operating system, mobile Celeron processor- 2.2 Ghz and 2.0 Ghz and a 256 MB memory with a year international warranty.

When contacted, other companies offering laptops in the country like Zenith and HCL-Toshiba said that they were not considering to launch a sub Rs 50,000 laptop.

“We are not looking at introducing a new entry level product within the laptop segment as we are largely focused on the corporate and SMEs with high-end solutions,” Toshiba business head-North India Gurpreet Malik said. Toshiba’s entry level laptop is available at sub Rs 60,000 with Windows XP and 256 RAM.

Zenith India managing director Raj Saraf too said that the company was currently not looking at introducing any new entry level laptop product. Zenith sells Centrino notebooks for Rs 70,000 in the country.

Hewlett-Packard had recently announced the launch of Compaq Presario notebooks at Rs 49,990 with Linux as the operating system (OS). The company is mainly targeting segments such as SOHO (small office and home office), SMB (small and medium businesses), education and sales personnel with this offering.

The Compaq Presario notebook is available through HP’s large set of retail and micro retail outlets spanning across India, according to a release. The notebook comes with a 2.4 Celeron processor, 128 mb RAM and 20 GB hard disc.