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Vipin V. Nair

Consumers seem to prefer an assembled PC with the choice of their configuration to a low-priced branded machine.

New Delhi , Nov. 30

A NEW segment is emerging in the personal computer market, as more and more hardware manufacturers believe it's better to join local PC assemblers than trying to beat them.

Companies such as Samsung, LG, Intel and Hewlett-Packard are aggressively tapping this market as a larger share of price-sensitive home users and small and medium enterprises continue preferring assembled PCs to branded machines.

So, while consumers earlier had two options - either they could go for a branded PC or buy an assembled one - today they can get a PC assembled using components from leading companies and be sure about after-sales service.

Assembled PCs today command over 60 per cent market share in India's PC market. Branded PC makers have been trying to woo buyers by aggressively cutting prices and offering various freebies, but assembled PCs are still cheaper by 20-25 per cent.

"We have grown by 20 per cent over last year and this year our target is to achieve revenues of Rs 1,700 crore over Rs 1,397 crore last year," says Mr Moninder N. Jain, National Marketing Manager of Samsung India Electronics Ltd, a major player in the assembled PC market.

Samsung sells its monitors, hard disk drives and compact disk drives through local assemblers. "If you assemble a PC using our components, it will still be about 15 per cent cheaper compared to a branded PC," Mr Jain said.

"We are looking at a huge untapped market. Our research show that 40 million households can afford to buy a PC, but today only about three million homes have a PC," he said.

Computing giant Hewlett-Packard also entered the assembled market recently by partnering with local assemblers. HP will sell a basic, unbranded PC configuration and optional components through the assemblers.

"Such initiatives give more confidence to consumers to go for an assembled PC as they are getting an almost branded PC. But it is still early to say how much market share such PCs today have," said Mr Vinnie Mehta, Director, Manufacturers Association for Information Technology.

Chip giant Intel also supports the assembled PC market by certifying assemblers through the `Genuine Intel Dealer' programme. Although many manufacturers sought to capture a share of the assembled PC market by launching low-priced computers, consumers seem to prefer an assembled PC with the choice of their configuration.

According to Mr Ravi Swaminathan, Vice-President, Personal Systems Group of HP, even if the share of assembled PCs dwindles in the future, it will be around 40 per cent of the total market. "Even then it will be a significant market," he said.

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