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Race to offer affordable computing is taking a new turn. PC for masses has been creating a buzz for long, but connectivity is now overtaking computing needs. The latest salvo comes from the world?s largest chipmaker Intel.

Race to offer affordable computing is taking a new turn. PC for masses has been creating a buzz for long, but connectivity is now overtaking computing needs. The latest salvo comes from the world?s largest chipmaker Intel. Last week, it promised Internet-centric desktop PCs for Rs 5,000 by January. Earlier, a series of ultra-portable computing devices with price tags lower than Rs 15,000 hit the market. Thin computing devices from vendors like IIT-incubated Novatium have created a buzz too.

Perhaps inspired by the mobile phone boom, PC players are now betting on Internet as the new killer app for computers. Digital vision, laid out by the minister of IT and communications,

A Raja, spells out a huge opportunity?500 million Indians connected to the Internet; more than 100 million broadband connections and 100 million broadband devices by 2012.

Numbers might look impressive, but it is no easy task. Low-cost PC initiatives don?t have a great track record so far. Price warriors including Usha, Sterling?s Siva, PCL, Wipro?s Janta PC, Simputer or the Rs 10,000 PC miserably failed to fill the digital divide.

Unfazed, the industry is confident that they have learnt their lessons. Having burnt their fingers, PC vendors are sure they have understood what it takes to develop and sell affordable computing devices. First and foremost lesson they have learnt is that price alone can?t ensure that a product will take off. By now, it is obvious that you can?t go to the market assuming that few 100 million people are waiting for a low-cost PC.

?Writing is on the wall. Cost is a criteria but not the only issue. Indians are looking for value at the right cost. Industry needs to get the right balance between functionality and price point,? explains Intel South Asia director marketing, Prakash Bagri. Indian computing major HCL Infosystems chairman, Ajai Chowdhary also agrees that a more inclusive-approach, ease of use and mobility of a cellphone are needed to make a computing product successful.

Equally important is the need to creating a ?perceived utility? for a PC. ?You question the utility of a PC but not a TV. A computer today is seventh or eighth in the priority list of middle class,? points out MAIT (Manufacturers Association of Information Technology) executive director, Vinnie Mehta. Industry probably needs to push harder on what a PC can do. Mehta is quick to reel out a list of benefits, ranging from online railways and airlines reservation, utility bills payment and banking online. While citizen services, online reservations and ecommerce could help make our lives easier, entertainment could be an equally big selling point. Almost all PC vendors agree that online social networking, watching videos and email could be reason enough for Indian middle class to invest in a device.

Connectivity is clearly a big hook. However, usage patterns in India are expected to be vastly different in market with low PC peneration. Unlike developed markets like the US and Europe, where Nettops and Netbooks are targeted at second users, the primary target here is youth and primary needs?education, entertainment and connecting on the Internet.

Also, complications in running a PC need to be weeded out to appeal to a first-time user. It needs to work like consumer electronics gadgets like phones or TVs. End users don?t care whether it runs Linux or Microsoft Windows, but front-end has to be user-friendly.

Intel last week showcased 30 prototypes of affordable Internet-centric devices called Nettops and Netbooks, based on its Atom processor from 12 OEM vendors including Acer, Asus, HCL, Lenovo, Intex, Novatium, Wipro and Zenith. Intel now says it expects a PC (excluding a monitor) with a price tag of Rs 5,000 to hit the market by January 2009.

Interestingly, Mumbai-based Zenith Computers also launched its Windows-based laptop and desktop priced at Rs 14,999 and Rs 11,999 respectively. That makes it cheaper than Asus Eee PC priced at Rs 18,000 and HCL?s MyLeap. Intex also announced plans to launch sub-Rs 20,000 notebooks this month. Obviously, these are not aimed at heavy gamers or number crunchers. Even cheaper laptops focused primarily on education sector include Nicholas Negroponte?s XO and Intel?s Classmate. Several desktop flavours are also being tried out. Thin computing devices from Novatium went live October last year and even forayed into other countries like Mauritius.

Low-cost machines are necessary but not enough to get the world online. The entire ecosystem needs to be ready. Intel claims to be doing exactly that. Besides tying up with 12 OEMs to develop prototypes of afford- able computing devices, it has joined hands with Bharat Sanchar Nigam Ltd (BSNL) to jointly propagate broadband Internet access across the country, along with wireless solutions like WiMax. Telecom firms like Tata Communications, Tata Teleservices, Reliance Communications, contentproviders like Google and education companies like NIIT have also pledged their support. No one knows what will click with first- time users, but everyone is scrambling to develop models that will appeal to new segments. Whether these experiments work or not, they are throwing up clues on what won?t work. New experiments will have to continue for this segment to take off, according to Ashok Jhunjhunwala of IIT Chennai.

Ultramobile PCs have made a small beginning, though they have just a miniscule marketshare. In two quarters (Q1 and Q2 2008), IDC estimates peg ULCPC (ultra low-cost notebook PC) category?s share at 0.42% and 0.25% in total notebook PC shipments. IDC defines ULCPC as products like the ASUS EeePC or HCL Myleap X series, which contain limited features and limisted functionalities such as no optical disk drives, no hard disk drive and are primarily meant for Internet surfing and responding to emails.

IDC research head Kapil Dev Singh is clear that these low-cost experiments are doing their bit to bridge the digital divide. Whether they sell or not, they attract a new set of buyers. ?These price points get people interested in buying a PC. For instance, Rs 1 lakh Nano or Rs 2 lakh Maruti car attracts two-wheeler buyers. Whether they buy a low-cost car or a higher-end model, low-cosst car is typically the trigger,? he sums up.

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First published on: 04-09-2008 at 23:11 IST
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