Compaq Unveils Presario 2110
The $18-billion Compaq Computer Corporation unveiled its strategy to position itself as the leading multinational brand in the home PC segment with the launch of Presario 2110, a Cyrix microprocessor-based multimedia machine at a price tag of slightly under Rs 70,000.
"Users today are both price sensitive and conscious about branded products. The Presario 2110 provides an affordable branded option," Compaq's country manager for India, Abhishek Mukherjee, said.
The machine is equipped with fast processors, larger memory and a premier sound audio system.
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The chief of the consumer PC division, Ravi Swaminathan, said to make its prices affordable, Compaq opted for a Cyrix processor, which was priced less than the more popular Intel processor.
He emphasised that the Cyrix chip fulfilled all the performance specifications of the company.
The import duties in India have led to cost doubling of Presario 2110, Swaminathan added. For the Indian market, Compaq imports personal computers, servers as well as desktops and portables directly from two of its largest plants located in Singapore and Houston, Texas.
Mukherjee said Compaq's wholly owned subsidiary in India is expected to be operational by the year end. He said the options for manufacturing in India have been kept wide open in view of the policy changes being initiated in the country.
In case Compaq sets up manufacturing base in the country, it would be more in the nature of an assembly unit, rather than a component base.
This is because the present volumes of sales in the domestic market do not justify setting up large production lines like those in its units in Brazil, Scotland or China.
Two crucial aspects that need to be considered before Compaq sets up manufacturing base is the savings in terms of production cost and logistics. At present, the company can save only 4 per cent on cost if it assembles units here. Unless the domestic market absorbs 100,000 machines per annum, the logistics aspect would not favour establishment of any kind of manufacturing base.
Out of Compaq's total revenues in India, home PCs constitute a 12 per cent share, servers account for 20 per cent, while desktops and portables contribute the rest.