HP India has announced that it would begin pilot selling of non-HP branded PC kits to local white box assemblers. The initiative called Impact (International Modular Premium Assembled Component Technology) is the first white box entry for HP in the Asia Pacific region.
HP is partnering with local white box assemblers by supplying them with a very basic PC configuration and optional components where they will have full flexibility to customize according to customer preferences.
The new non-branded base unit from HP will have a chassis, motherboard, floppy disk drive, power supply, keyboard and mouse. Optional PC components in the program include memory, hard disk drives, CRT monitors, CD—RW/DVD combo, CD-ROM and CD-RW drives.
The white box market is a strong and growing market in India. According to IDC Q2 2003 data, close to 70 percent of all PCs are being supplied by local assemblers.
“By entering this growing market and adopting the strategy of partnering with local white box assemblers, HP will increase customer choice and further our growth in the India PC market together with our partners,” said Gerhard Schiele, Strategic Business Director (Personal Systems Group), Asia Pacific.
“Based on our local research findings, strong demand comes from first-time users who want an inexpensive entry into the digital age. A large number of white box customers have indicated that they value the reliability of branded products but at the same time value custom configured PCs that come with local support, fast service – delivered at competitive prices,” said Ravi Swaminathan, VP, Personal Systems Group India.
“The key to this segment lies with customization and personalized service. HP provides value to local white box assemblers with a base hardware unit that allows them to further customize the product as well as effectively compete on price. The advantage of this approach to customers is that they will continue to enjoy low overall prices, the flexibility and segment expertise they expect from local resellers, plus the reliability and quality of the components supplied by the Impact Program,” added Swaminathan. HP will pilot its white box program with Redington, a leading distributor in India who will wholesale the non-branded PC base unit and optional components to local assemblers.
DQW News Bureau