PC makers in no-holds-barred battle over market share

Among the various features, the high-tech range sports a desktop video centre to create digital movies or video record messages and transmit them along with their e-mails. "We feel the PC is now part of the overall entertainment experience and what we’ve created are tools for a lifestyle," said Alex Gruzen, VP, Asia Consumer Group, Compaq.

Compaq managing director Balu Doraisamy said, "the machines are available with interchangeable colour panels, compact disc writer which enables the user to record music or any other files on a writeable CD. It also has a digital video display (DVD), photo editing software and multi-media features".

HCL Infosystems recently launched three of its BeanStalk PC series – BeanStalk Ultima Pro PC, BeanStalk Ultima and BeanSTalk Elite. Powered by Intel Pentium III 700 MHZ processor and ready internet access, the series are priced 79,990, 55,990 and 59,990 respectively. "These new indigenously designed, upgrade-friendly BeanStalk will be marketed through our distribution network of 800 resellers and 80 retail outlets across 300 cities. This exceptionally fast range with 700 MHZ processor takes it a cut above any other product from the competitors," said Rajendra Kumar, vice president (operations) of HCL Infosystem.

Another reputed player in this field, Hewlett Packard (HP), has come out with its Pavilion series 6615, 8622 and 8624 priced at Rs 49,999, Rs 59,999 and Rs 69,999 respectively. In a bid to get an edge over its competitors, HP offers a free colour deskjet printer and 50 hrs free internet access. The 8624 model has been provided with 667 MHz Intel Pentium III processor, 15 GB hard disk and 4x4x32x HP CD-writer.

A recent survey conducted by Dataquest on the computer market has said that the desktop PC sales have crossed one million mark and predicted it to grow by about 45 per cent. The branded PC market is currently dominated by HCL with a sales figure of 1,01,500 followed by Compaq 79,484 and HP 63,000.

Going bullish on Compaq’s performance in India, Gruzen said that Compaq India was currently witnessing a growth that was about four times that of the market for home computers which in turn has been growing at about 80 per cent per annum. Compaq, which has invested Rs 25 crore in terms of operating capital in India, rolls out about 25,000 machines per month, he informed.

“Earlier PC segment was a sellers market. Now it’s a buyers market,” said an industry expert. On the other hand, assembled computer sellers are also giving sleepless nights to the branded machine manufacturers. "We agree that we don’t get orders from reputed big companies as they always go for the branded machines. We always target the home computer users," said a computer assembler.

Industry pundits unanimously proclaim that the growing number of internet users in India will fuel further growth in PC sales. With PC penetration remaining low in India, they feel there is a big and unexplored market in India.