PC demands: On a high

DQW Bureau
08 Feb 2011

With the ever increasing
demand for PC penetration in India, the demand for PC components is
bound to go up and the future only looks bright for the IT hardware
sector style="background: transparent none repeat scroll 0% 0%; -moz-background-clip: border; -moz-background-origin: padding; -moz-background-inline-policy: continuous;">.
With the increase in
PC/Notebook uptake by youth, self-employed professionals, SMBs and
the large enterprises, PC components such as motherboards, Processors
and hard drives got traction in the Indian marketplace. Intel and AMD
have been bringing out processors at a breakneck speed. The
recent example being Sandy Bridge by Intel which is meant for
next-generation PCs and designed to operate in a market in which
consumers are demanding greater computer performance. The new
architecture links the components that form the computer's brain and
will be installed in all standard computer products lines (Core
i3/i5/i7), and probably in servers as well in the future.

Sandy Bridge processors by
Intel and motherboards embedded with superb gaming capability chips
are the new technologies on the go in the market currently. On the
motherboards front, the vendors are designing and developing products
based on latest technology and aspire to be the innovation leaders in
motherboards. In India, some motherboard vendors like Gigabyte make
60-65 thousand motherboards monthly. Its style="background: transparent none repeat scroll 0% 0%; -moz-background-clip: border; -moz-background-origin: padding; -moz-background-inline-policy: continuous;">market
in India stands at 20-22 percent and they plan to take it to 25
percent in the year 2010. Motherboard market has been through a
fierce competition. Vendors had to bring out a lot of strategy to
make themselves different. They had differentiated on the price and
innovation fronts. Some motherboard majors such as ASUS and Gigabyte
achieved a YoY growth rate of 18-20 percent in India.

Computers prices yet to
reach the levels of creating the point of inflexion. This is partly
due to the fact that while most major end-producers are based in
India, very few components/subsystem suppliers have evolved any
engagement here. The solution lies in facilitating effective
end-to-end supply chain ecosystem in India, which will eventually
lead to cost arbitrage and job opportunity. These actions will
establish India as an IT hardware location in the long term. The fact
that India has one of the lowest PC penetrations among the major
countries in the world, there is a paradox of stimulating growth to
attract investment in India.

In the last one year, the
vendors have basically focused on three things — product,
infrastructure and customers. On the product side, they have been
bringing in the latest innovation in features and best quality
products. They have also been working on developing the biggest
post-sales network for their partners and customers. To reach out to
the customers, they plan to touch base with them at different levels
viz. smaller cities and to style="background: transparent none repeat scroll 0% 0%; -moz-background-clip: border; -moz-background-origin: padding; -moz-background-inline-policy: continuous;">wns.
the PC sales promising high growth/penetration in the coming
years, the PC components sales will automatically see a high growth
trajectory in times to come.

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