PC Prices: 10k barrier is still way off

In the last one-year, couple of vendors have announced PCs at below the magic
price point of Rs 10,000. It started with the distribution major eSys and
culminated with little-known Xenitis Infotech of Kolkata coming up with the
Aamar PC. In between, there has been the Simputer as well as the Mobilis from
Encore.

No doubt, there is real effort being made to constantly bring down the
affordability factor of PCs. But do we see success in these efforts? Are PCs
really becoming affordable? Will we "realistically" break the 10k
price barrier?

Let's first look at the 10k barrier. Theoretically speaking, yes the 10k
price barrier has indeed been broken. But when you closely scrutinize the finer
details, you will find that this figure is way of the mark. A real workable PC
with proper legal software including taxes, installation, handling charges etc
will cost upwards of Rs 15,000. Yes, you heard me right. Fifteen thousand is the
minimum any user will pay for a barebone PC.

If 15k is the right figure, then what about all the ads which scream PC at
10k? Please have a closer look at the fine print. If the PC is based on AMD or
Intel processors, it will be without the monitor, which straightway adds 5k to
the cost. If the PC is with monitor, it would be based on the VIA processor and
will come bundled with Linux. Which essentially means, you have to buy Windows
as without that the PC is as good as a television is without a cable connection.
In both the cases, you will be able to get something out of them-maybe some
basic word processing on the PC and DD1 channel on the television-but not what
you actually bought these wonderful inventions for.

By and large, these low-cost PCs are aimed at the home buyers. And what does
an average home buyer buy the PC for? Certainly not for basic word processing.
He buys is to surf the net, check mails, his kids play games etc. These
activities would no way be possible on a barebone PC being currently advertised.
For that, a fully functional PC with Windows would be needed.

So, if the PC "really" costs nothing less than 15k, can this price
point be called affordable for the common man? Not really because 15k would
equal the monthly salary of an average home buyer, which essentially means that
he is unlikely to buy a PC in a hurry. In any case, PCs are still a long way off
from being the must have at home the way televisions, washing machines,
microwaves, DVD players etc are. And that can happen only when the 10k price
barrier is broken in the "real" sense.

Asim Raina