Taking Cue From Intel, Indian OEMs To Slash PC Tags

New Delhi: | Updated: May 19 2003, 05:30am hrs
Close on the heels of Intels worldwide announcement of 30 per cent price reduction in its Pentium 4 microprocessor, HCL Infosystems has slashed prices of its high-end personal computers by almost 14 per cent while other Indian original equipment manufacturers (OEMs) are in the process of doing so.

Mumbai-based Zenith Computers Limited is planning to slash the prices of its PCs in response to Intels announcement by over 7 per cent in another fortnight. Wipro Infotech is also working out new prices for PCs, according to market sources. The officials concerned in Wipro Infotech were unavailable for comments.

The prices of 3.06 Ghps processor-based 17-inch monitor PCs are down to Rs 71,990 from Rs 84,000. The price reduction in Intels microprocessor will have an impact on all the volume based PCs in 6-9 months. As of now, only the prices of high-end PCs have been impacted, HCL Infosystems national marketing manager Rajan Rahi told eFE.

HCL Infosystems is also in the process of launching hyper-threading based 2.4 Ghps PCs.

According to Manufacturers Association of Information Technology (MAIT), the prices of PCs (high-end and low-end) are down by 6 per cent in the last 8 months and going forward it sees a reduction of at least 5 per cent on an average in the coming 12 months.

A reduction in local levies and excise can further bring down the prices of PCs thus encouraging the PC growth, MAIT executive director Vinnie Mehta said.

Though Zenith Computers CEO Raj Saraf was not available for comment but a company official disclosed that there would be a minimum 6 per cent reduction in PC prices, which would be announced before the end of this month. At the high end, the price decline will be higher, say over 10 per cent, the company official said.

Early last week, Intel announced a worldwide price cut of over 30 per cent for its 3.06 Ghps-based processors with hyper-threading and price cut of 5 per cent on the remaining processors, Mr Arora said.

The idea is to make Intel high-end (3.06 Ghps) processor a volume product as we are ready to introduce other high-end processors in the market, Intel India regional channel sales manager Sandeep Arora said.

Intel recently had announced the availability of 4 Ghps and 5 Ghps-based processors (which are likely to become high-end processors) but has not yet announced the commercial launch.

Almost every quarter, the company announces a price reduction of at least 5 per cent on its processors but this time the reduction is higher as the idea is to make the high-end processor a volume product, Mr Arora reiterated.