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| Low-cost computing gets netbook boost |
| Priyanka Joshi / Mumbai Aug 29, 2008, 00:42 IST |
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Mumbai-headquartered Zenith Computers is set to take low-cost computing initiatives in the country a step further with the launch of its new Windows-based laptop and desktop, priced at Rs 14,999 and Rs 11,999, respectively. Low-cost computers are also called netbooks since they have limited system capabilities like smaller screens and lower memory.
The Zenith EcoStyle laptop is the lowest-priced Windows OS-enabled laptop till date. It even topples the Asus Eee PC that costs Rs 18,000 but is Linux-powered. The XO laptop from Nicholas Negroponte's stable and the Classmate PC from Intel (with both Linux and Windows OSes) are cheaper but focused primarily on the education sector.
Traditionally, Windows-based laptops haven't been able to break the Rs 20,000 price barrier. The current price reduction, say analysts, has been based on estimates that netbook shipments should reach slighly over 8 million this year and then more than double to 18.3 million units in 2009. "Netbooks have the potential to expand internet access to a large base of people by addressing affordability," explains Sumanta Mukherjee, PC analyst, IDC India. However, since low-cost computers have limited system capabilities like smaller screens and no more than 1GB of RAM, Mukherjee questions the uptake of Microsoft Windows OS on these devices.
On its part, Microsoft has worked hard to make Windows XP as available as possible, even tweaking the OS to run on low-cost laptops. The lower cost tag also challenges the adoption of open source-based operating systems like Linux on personal computers. Ravi Venkatesan, chairman, Microsoft India states: "Under the Microsoft Unlimited Potential initiative, our effort is to bring sustained social and economic opportunity to people who currently don't enjoy the benefits of technology. Our aim is to propel a wider acceptance for IT amongst the masses by extending an opportunity to learn, connect, create, and succeed by combining advanced technologies and relevant partnerships." Microsoft's programme appears designed to ensure that distinction is maintained and to prevent low-cost PCs from cannibalising sales of higher-end systems.
A Microsoft spokesperson refused to share the price at which it licenses its Windows XP to PC makers but it is approximated that Microsoft charges around Rs 1,200 for the Windows XP Home Edition for ULPCs sold in emerging markets such as China and India, depending on the deal with the OEM partner. HCL, that has launched Windows-based affordable laptops under the MiLeap brand, reasons that Linux-bundled laptops are priced cheaper for several reasons, including easy hardware requirements and there is no license fee to be paid for the OS.
George Paul, executive vice-president, HCL Infosystems, is not ruling out possibilities of lower-priced netbooks in future. Paul expects more competition between Windows and Linux in the low-cost PC market citing, "it could invigorate sales because consumers who want an easy-to-use PC are likely to prefer Windows."
Acer, too, recently launched its mini-notebook for the low-cost space -- the Aspire one. Priced at Rs 19,999 for the Linux-based mini-laptop, Acer hopes to lure those who want an inexpensive, convenient mobile device to surf the internet wirelessly. Other Taiwanese companies are working with Linux too. Asustek Computer offers both Linux and Windows XP versions of its popular Eee PC -- the device that kicked off the trend to commercialise low-cost laptops. The company expects to sell two million Eee PCs with the Linux OS this year. Francis Kao, product manager (Notebooks and Eee PC) Asus India is aiming at a monthly sales target of 10,000 netbooks.
"Our projected growth rate for just Eee PC is 300 per cent," he adds optimistically.
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