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PC prices crash anew, P4 tag Rs 29,000

Savio G Pinto & Rumi Dutta in Mumbai

Personal computer prices have crashed by Rs 5,000-8,000 over the last fortnight. A Pentium P4 desktop, assembled locally, now costs about Rs 29,000, down from Rs 36,000 towards the end of July.

Industry sources said for lower configuration PCs, prices have fallen even below Rs 25,000.

Analysts say the main reason for the southward movement in PC prices is that processor prices are constantly falling with the two main international players Intel and AMD developing faster and higher performance processors at regular intervals.

According to Rahul Singh, marketing specialist, Advanced Micro Devices, "The evolution of computing technology is constantly bringing manufacturing costs down. Consequently consumers are getting more value at the same price points."

"The Rs 25,000 PC today packs in a lot more power, performance and features than its counterpart a year ago. This trend will continue in as far as the Indian PC sector is concerned," he added.

The huge unorganised sector involved in assembling of personal computers is able to take advantage of this technology obsolescence factor and is in a position to offer custom-made personal computers depending on a customers affordability criteria.

For example an assembled PC with an Intel P-4/1.6Ghz processor and an Intel 845D chipset motherboard, with a with 128MB SDRAM and 40GB hard disk drive and a 15 inch Samsung or LG colour monitor along with a 56Kbps Internal Modem is available for just Rs 29,000.

The same was available at over Rs 36,000 around a couple of weeks back. To top it all freebies like a free Internet connection are thrown in.

Arun Bhattacharya, executive vice-president, PCS Industries a company involved in manufacture of branded PCs, however says, "Manufacturers of branded PCs will not try and fight the onslaught of the unorganised sector through lower prices since 60 per cent of PC sales are in the high end, new CPU category. Branded PC manufacturers would resort to bundling of products, offering more features at the same cost."

K R Naik, vice-president, Manufacturers Association for Information Technology says: "Technology obsolescence is playing a major role in prices falling across the board. The rate at which technology is changing and are being upgraded, prices of components which go into the making of a PC sometimes fall by as much as 60-70 per cent within a span of three months,"

"In India where the market is extremely price sensitive, the tendency is to go in for products whose technology is a notch below top of the line products, but for which the price paid could be less than half," he added.

The downward pressure on prices is being felt even in the peripherals industry with the prices of printers and other associated products like web cameras falling steeply. For example an HP 656C Colour Inkjet Printer is available for Rs 3,550 inclusive of taxes, delivery, installation charges and a one-year warranty. Web cameras are also available for just over Rs 2,200.

One thing is definitely certain though, whether it is technology obsolescence or the impact of the unorganised sector, the Indian consumer is certainly benefiting and having options like never before.

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