The company is also offering its low cost PC in the Indian market. With the launch of the low cost PCs, it has seen 2%-3% growth in demand for PCs. It is offering the low cost PCs at the price of around Rs 11,500. We have been offering these low cost PCs since March this year, and since then, have seen an increase of 2%-3% in the demand for PCs, commented Saraf.
However in spite of all the efforts put in increasing the PC penetration in India, the high excise duty is felt to be a major constraint. The excise duty is too high, thus if we want also the prices of the individual PC components cannot be reduced any further, commented Saraf.
A further increase in demand for PCs could be observed only if the excise duty goes down reasonably. Only if the excise duty goes down, will we be able to further reduce the PC cost by 12%-15%. And as expected, there will also be an increase in demand, at least by 10%, said Saraf.
With only 2% of Indias population having a PC or Internet connection, the challenge is large. Only if the PC prices go down will we be able to see a similar kind of PC penetration in India, as is seen in China, he added.
The company has 350 direct channel partners, and is planning to add 150 more to the already existing list by the end of this year.