On May 22, the world’s largest processor manufacturer, Intel, announced an initiative to reduce the cost of PCs in India to increase computer usage in this third-largest economy.
This announcement was made by Intel’s CEO, Paul Otellini, ahead of his planned visit to India this week. The initiative aims to reduce the cost of PCs by more than 20% compared to the lowest-priced PCs currently available in India that feature Intel chips with similar specifications.
These affordable PCs are expected to be launched within the next two months and will be marketed by Indian companies such as Wipro Ltd. (WIPR.BO) and Zenith Computers Ltd. (ZENC.BO). Intel will also collaborate with Indian bank ICICI Bank Ltd. (ICBK.BO) to offer loan support for buyers.
Currently, the cheapest PC in India is priced at around $220. Despite the country’s reputation for software development, PC penetration remains relatively low due to high prices and a lack of electricity in many areas, particularly in rural regions.
Experts believe that Intel’s latest move may be influenced by AMD’s plan to invest approximately $1 billion over the next five years to promote Internet access and computer training in developing markets. This initiative, named “World Ahead,” aims to provide high-speed wireless Internet access (potentially via satellite) to about 1 billion individuals who are unable to go online due to economic and geographical constraints.
In addition, Intel will closely collaborate with the Indian telecommunications group Videsh Sanchar Nigam Ltd. (VSNL.BO) to expand wireless Internet coverage at train stations across the country.
In December 2005, Intel announced a $1 billion investment in India to accelerate research and development (R&D) efforts to support emerging media companies. It is reported that over the last decade, Intel has invested approximately $700 million in India’s IT sector.
VH – (Reuters)
