Low Cost PCs
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ICMR HOME | Case Studies Collection
Case Details:
Case Code : BSTA143
Case Length : 09 Pages
Period : -
Organization : -
Pub Date : 2005
Teaching Note :Not Available
Countries : India
Industry : PC (personal computer)
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Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Excerpts
Background Note
India's personal computer (PC) sales had grown at 37% in 2002-03, 32% in 2003-04 and 20% in 2004-05. Sales growth had been steady but not rapid. One of the key reasons behind the low growth rate in India was that the Internet was yet to take off. Against China's 87 million subscribers by the third quarter of 2004, the total number of subscribers in India was just 2.92 million. China's Internet population was also growing at 28% per annum against India's 23%...
The Growth of Low Cost PCs
In October 1998, during the organization of an international seminar on information technology, Bangalore IT.com, a discussion paper highlighted the need for a low-cost mass access device that would bring local-language IT to the masses. For the purpose of establishing originality, an acronym was invented for the proposed device - Simputer: simple, inexpensive, multi-lingual computer.
The Simputer Trust was created with seven trustees from the Indian Institute of Sciences and the Bangalore based Encore Technologies...
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Looking Ahead
Sub-10K PCs made a lot of sense in India because of their affordability. Tathagata Dutta, Co-Founder and Managing Director of the Xenitis Group explained,
"The affordability factor is a major hindrance for computer buyers in India. We
also felt that there is huge potential in the first-time buyer segment. Hence,
we decided that the sub-10K PCs would open this gateway."...
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