More for less from Xenitis?

07Jun05

This report from The Week says Xenitis Computers’ PC (AAmar PC in the east, AApna PC in the north, AAmchi PC in the west and NaMMa PC in the south) sells for Rs.10,000 – while the high end model is priced at Rs.25,000.

Apart from the current pricing, two more things are striking : the company’s aim to be the first Indian MNC in computer hardware manufacturing – the chairman, Mr. Ghosh is confident that Xenitis’s low-cost computer will help it emerge as the first Indian MNC in computer hardware manufacturing. “The Indian computer market is growing at an annual rate of 35 per cent,” he said. “Every third year, the market doubles in size. I am sure that, by 2010, Xenitis’s turnover will cross Rs 5,000 crore. Already, we have captured a sizeable chunk of the market in Bangladesh. In June, we will start shipping our products to Dubai and in September, we will sell AApna PC in Russia.”

And price control in the market – He said MNCs, which monopolised the Indian hardware market for long, were feeling the pinch. “Our brand has compelled most of them to reduce the price of their products by at least 25 per cent,” said Ghosh. “When our products from the new factory hit the market, the artificial price structure maintained by them for so long will collapse. My aim is to sell a PC at a price which is at least 10 per cent less than our existing cheapest set. In this regard, my idols are Henry Ford and Ratan Tata.”

From Business Line – Xenitis Group launches sub-10k PC, to set up manufacturing unit

Then what is all the fuss about the Mobilis please? (I now sit back and wait for Dheepak / Abi to answer this one – am genuinely puzzled – and I have always said I was tech-handicapped – am fascinated more by the economics aspects of this)

Also The Rs 10,000 solution? Low-cost PCs are the rage. While the price barrier has been broken, what about functionality? My understanding of this is that while such low priced computers may not provide the most sophisticated programs, they are adequate for basic computer functions like word processing and internet browsing – these computers are targeted at low end users in any case…

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And as I was surfing, I came across this – If the automobile had followed the same development cycle as the computer, a Rolls-Royce would today cost $100, get a million miles per gallon, and explode once a year, killing everyone inside – Robert X. Cringely, InfoWorld magazine

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