More for less from Xenitis?

This report from The Week says Xenitis Computers’ PC (AAmar PC in the east, AApna PC in the north, AAmchi PC in the west and NaMMa PC in the south) sells for Rs.10,000 – while the high end model is priced at Rs.25,000.

Apart from the current pricing, two more things are striking : the company’s aim to be the first Indian MNC in computer hardware manufacturing – the chairman, Mr. Ghosh is confident that Xenitis’s low-cost computer will help it emerge as the first Indian MNC in computer hardware manufacturing. “The Indian computer market is growing at an annual rate of 35 per cent,” he said. “Every third year, the market doubles in size. I am sure that, by 2010, Xenitis’s turnover will cross Rs 5,000 crore. Already, we have captured a sizeable chunk of the market in Bangladesh. In June, we will start shipping our products to Dubai and in September, we will sell AApna PC in Russia.”

And price control in the market – He said MNCs, which monopolised the Indian hardware market for long, were feeling the pinch. “Our brand has compelled most of them to reduce the price of their products by at least 25 per cent,” said Ghosh. “When our products from the new factory hit the market, the artificial price structure maintained by them for so long will collapse. My aim is to sell a PC at a price which is at least 10 per cent less than our existing cheapest set. In this regard, my idols are Henry Ford and Ratan Tata.”

From Business Line – Xenitis Group launches sub-10k PC, to set up manufacturing unit

Then what is all the fuss about the Mobilis please? (I now sit back and wait for Dheepak / Abi to answer this one – am genuinely puzzled – and I have always said I was tech-handicapped – am fascinated more by the economics aspects of this)

Also The Rs 10,000 solution? Low-cost PCs are the rage. While the price barrier has been broken, what about functionality? My understanding of this is that while such low priced computers may not provide the most sophisticated programs, they are adequate for basic computer functions like word processing and internet browsing – these computers are targeted at low end users in any case…

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And as I was surfing, I came across this – If the automobile had followed the same development cycle as the computer, a Rolls-Royce would today cost $100, get a million miles per gallon, and explode once a year, killing everyone inside – Robert X. Cringely, InfoWorld magazine

3 comments

  1. Charu, thanks for asking for my inputs on Mobilis, but no thanks! Check out the comments of this post by Badri, where he says some nice things about Mobilis in response to my comments. In any event, the product is really not out in the market; much will depend on the initial reviews.

    Now, your other quote about Rolls Royces being available for 100 dollars, etc., you might be interested in reading this and this.

    Cheers!

  2. thanks abi, I read thru badri’s post and comments – and I wonder how bateries will provide a solution – how long will the battery last and what about charging? I have tested (consumer researched) the idea of battery with respect to another product and found people equally unsure about it…
    and in any case, I don’t think a low end, low priced PC is targeted at sophisticated users – badri answers my question about why the mobilis might be a better option – but the market is wary of the Mobilis given the history of the simputer… now we wait and watch?

  3. Sorry to drop in late but this was the same PC firm which produced the 10k desktop that I was referring to while trying to debunk the halo surrounding Mobilis.

    There is an update – sahara group have also joined the 10k desktop fray. Check out the specs given in the Hindu and in the Sify

    It all depends on what you consider as functionality. For eg take my brother – for him nothing short of the latest graphic card will suffice is needs to squeeze in more fps for the latest 3D game. Whereas for me, a PC with loads of storage space (cant reveal the reason here – i might get sued) will suffice.

    The PC quoted by Sahara is pretty good. Unless someone is into mutimedia/animation design or latest high end games, this should satisfy them. If I add a CD writer and a TV tuner card for three thousand ruppess, this will be perfect.

    BTW most games will be playable in this PC. If they want latest and resource hungry games then they should purchase a console like Playstation or XBox.

    BTW one small suggestion – why dont you increase the height of this “your comment” textbox. Its difficult to write when only four lines are visible at any point of time. Or is it a subtle hint to keep the comments short 😉

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