Laptop Nanos - Telegraph Calcutta (Kolkatta)

The Tata Nano brought in the revolution to mini / small / sub notebooks. The Atom Revolution. Rahul Jayram, with the Telegraph had done a wonderful story in August 2008, that I forgot to publish here on the blog. The Story had my interview / comments in it, and I have highlighted those in the middle of the blog post for my readers, who don't get the Telegraph

Vikas Kumar, 32, a middle-level executive at an information technology (IT) company, all too often hits the road. Little surprise then that the Delhi-based Kumar has long had a love affair with computers and has saved up money to buy a laptop, perhaps a Dell Inspiron. But now that he has heard of low-cost laptops and computers that are soon to hit the stores, he’s prepared to wait. “There’s every chance of computer prices crashing, so I'll bide my time” he says.

Kumar is being prudent. In a bid to reach out to the mass market, computer makers have embarked upon a quest for lower priced personal computers and laptops.

In January, Chennai-based Novatium Solutions launched a Rs 4,999 desktop called netPC and has now inked a distribution deal with state-owned Mahanagar Telephone Nigam Ltd. On June 23, software giant Intel launched what was perhaps the world’s smallest processor, the Intel Atom processor, which will power low-cost desktops (called Nettops) and super-light laptops (called Netbooks).

To begin with, the Nettops and Netbooks will be produced by three Indian companies. While Zenith is already out with its Nettop PC, Wipro and HCL are readying to storm the market with Nettops and Netbooks. A Netbook will carry price tags of Rs 20,000 to Rs 25,000 while the bill for a Nettop will range from Rs 11,000 to Rs 15,000. The prices will be considerably lower than the current prices of a desktop, which now costs about Rs 35,000, and a laptop, which comes for about Rs 45,000, both depending on the configuration.

“The point about low cost computers is about entering the Indian household. There are only around 8 million home PC users in India, while around 30 million people still go to cyber cafes,” says the Mumbai-based entrepreneur and co-founder and chairman of Novatium, Rajesh Jain. “Low-cost computers like the netPC will make cyber cafe users buy these computers. The way to make that happen is by entering the market with a dramatic entry price point.”

The company has already sold around 7,000 netPCs. “We are looking at penetrating 100,000 households in the current financial year,” exults Jaideep Kohli, chief operating officer of Novatium in Chennai. Kohli is also clear that the Rs 4,999 product is aimed at the mass market. “The netPC is a simple, hassle-free machine to be used by children, youngsters and home makers.” So it doesn’t have a central processing unit (CPU), software, hard disc and random access memory (RAM). “All these reside in the central server at the administrator’s end,” Kohli explains.

Netbooks and Nettops fall in a different bracket. Though cheaper than most existing desktops and laptops, they’re not as inexpensive as netPCs. Netbooks are also small and convenient to carry around.

“The Intel Atom will lead to the availability of a range of affordable Netbooks and Nettops. These devices, enabled with broadband connectivity, will help bring the Internet and basic computing experience to many more people in India,” says R. Sivakumar, managing director, sales and marketing group, Intel, south Asia.

Rajesh Gupta, director, sales and marketing group, Intel, south Asia, Mumbai, explains that Intel wants to expand the availability of computers and the Internet to smaller towns such as Raipur and Rajkot. So it has been working with state-owned Bharat Sanchar Nigam Ltd (BSNL). “In the interiors of states such as Gujarat and Maharashtra, we have a tie up with BSNL service providers. They are computer sellers and also our direct sales agents. So the BSNL outlet becomes a one-stop shop to get these basic computers and a broadband connection,” says Gupta.

The Netbook is light — 1.2 kg, versus a standard mainstream notebook’s 2.5-3 kg — and small, with a 10-inch screen size (versus screen sizes of 15-17 cm in regular laptops). It has a 1 GB RAM, 80 GB HDD and XP Home with an integrated web camera. It will be Wi-Fi enabled (by next year WiMax enabled also). That means you can use it without wires. And you can make phone calls over the Internet free of cost with software that enables you to do so.

The big question, of course, is whether the new laptops and desktops will grab hordes of buyers. Bangalore-based Ashok Tripathy, head, personal computing division, Wipro, believes that Netbooks are just right for first-time buyers, or those looking for simple Internet use and portability. “These Netbooks are ideal for people who want to surf, who want a second notebook at home, for travellers who want a light machine or for people who do office applications, e-mail and not too high-end computing,” he says.

Some technology experts, however, are sceptical. “The availability of lower powered machines at great prices will expand computer usage,” says Gagandeep S. Sapra, technology columnist and CEO of System 3 Group, an IT infrastructure and consulting firm in Delhi. “But to sell it you’d have to fight the typical Indian mindset. We think if it’s expensive, it’s good; if it’s cheap, it’s bad. The bada hai toh achchha hai mentality is difficult to overcome.”

Diptarup Chakraborti, an analyst at IT research and advisory firm Gartner Research, Mumbai, is not impressed by the prices. “At Rs.20,000-25,000, Netbooks don’t come all that cheap,” he says.

But Nettops are, and Vikas Kumar can go out and buy a laptop that may just be the industry's version of the Tata Nano.

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The above story appeared in the Telegraph Calcutta, news Paper on August 3, 2008. The Story has not been written by me, and I am not claiming to be the owner of the Story. All rights for this story are reserved with The Telegraph.