In India, motherboards market size is approximately three million

DQW Bureau
08 Feb 2011

There is still a great
demand for PC components in India as this is one of the few markets
in the world where the desktop market is growing as opposed to most
countries where the laptop market is eating into the desktop market.
For upcountry locations where PC penetration is still low, there is
higher demand for PC components. The growth of the PC component
market has been good and can be pegged at approximately 10-11 percent
in India compared to 2009. With PC penetration increasing, it is on
an upward graph and is not expected to decline in the near future.

is coming out with 900
series early this year and recently launched Intel Sandy Bridge
processors. Intel's Sandy Bridge processors and AMD's Brazos are
the latest technologies to hit the market. Also, ASUS Dual
Intelligent Processors 2 with DIGI+ VRM-consisting of the Energy
Processing Unit (EPU) and TurboV Processing Unit (TPU), is a unique
technology that delivers a potent combination of streamlined
system-wide energy consumption and enhanced PC performance.
Second-generation Dual Intelligent Processors 2 technology adds the
innovative DIGI+ VRM design to set a new standard in digital power
management. DIGI+ VRM replaces analog voltage regulator module (VRM)
controllers with a digital programmable microprocessor that fully
integrates Intel's VRD 12 CPU power delivery system to eliminate
digital-analog conversion. Since it works at such a fundamental
level, DIGI+ VRM improves PC performance from the ground up,
improving over-clocking capabilities while increasing power
efficiency, system stability and reliability.

In India, the market size
is approximately three million for motherboards excluding OEM and
branded PCs. In terms of market share, ASUS has grown from 28 percent
in 2009 to 36 percent in 2010. As predicted for every year, growth in
C, D and E-class cities have been strong and the potential of smaller
cities is being felt. Demand for mid- and high-end motherboards has
been consistently improving in the last six months in C, D and
E-class cities. There is a great demand for robust, feature-rich and
quality products and buyers are also becoming more knowledgeable
about why they are buying those products, which is a good sign for
market evolution.

However, we believe that
one of the factors that hinder the PC component market is that India
being a price-driven market, there is always more focus on the price
of the product than its features and value. This will take more
understanding of the products from the users and efforts from
partners to sell the right product to the right customer. The focus
should ideally be on the products and their value for the market to
evolve and develop. The PC component market will continue to grow in
the coming years. This is largely due to limited PC penetration in
our county and the fact that first time PC buyers will continue to
buy desktops thereby leading to sales of PC components. We expect
this growth to sustain at least till 2014.

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