Expert Speak

Counting the Exploding Numbers

Exploding Numbers

If one were to go by the industry figures available from the latest Mait report, the PC sales have notched a remarkable growth rate by growing at 37 percent. And it is expected to grow further this year. Although, most of the growth could be attributed due to more demand from the verticals, it is true that the home segment too has grown.

p____p It looks a time of celebration of technology in the country, ala the Monsoon �Hungama� from Reliance. Whatever the merits or demerits of Reliance�s offer are, one thing is certain. The offer has really taken the WLL phone to the hands of the masses. Everyone with need or the penchant to be connected all the time can afford to do so without worrying about the initial purchase of an expensive handset.

p____p I get the feeling that in the year ahead, across the PC industry, mobile telephony and consumer electronics, the numbers are set to explode dramatically. They may indeed follow no logic of forecast and we could be further surprised by a more quantum leap next year.

p____p The conditions for the quantum leap seem to be in place with companies coming up with great offers to get the volumes. However, unlike in mobile telephony where, the service provider can well afford to subsidize a handset and try and make up in the long term by providing service, the PC manufacturers do not have a service route to make good any subsidy given to a consumer. So rock bottom offers like the Monsoon Hungama are out of the question. Instead, the value PC concept is applicable like the EPC.

p____p In this context, the handheld �Simputer� comes to one�s thought. Available commercially, the Simputer is still yet to catch on as the computer of the masses, as once conceptualized. I do not understand the low visibility of the product on the radar screen of the industry. It is India�s own masterstroke and needs stronger patronizing from government and industry alike.This handheld computer from Bangalore based Encore and Picopeta could definitely be a goldmine for ramping up numbers and computer penetration in our country.

p____p Of course, as cheaper PCs come onstage, the concern will be about margins to the channel. Sadly, there is no magic formula. Getting the volumes is one way of making profits. Secondly, if you have only been selling to the home segment until today, it is necessary that you look for orders from other segments. In other words, it is important that you keep scaling your business.

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