BANGALORE: Following the steep strengthening of the dollar against the rupee,
Compaq India is considering hiking the prices of its consumer PC range. Speaking
to CIOL Bureau, Compaq Computer (India) director, consumer division Ravi
Swaminathan said that there was certainly a pressure on the company. "We
are examining how long can we sustain the pressure," he said, adding,
"however, there is acute competition in the market and the margins are very
low."
The Indian currency had seen a sharp fall against the dollar, almost dropping
by a rupee, during May-June, affecting the import price of PC parts. The
decision of Compaq, which is the largest MNC seller of consumer PCs, could have
a ripple effect on the market.
According to Mr. Swaminathan, Compaq’s consumer division expected a growth
of 200 per cent during the first quarter of this fiscal over the corresponding
period of last year. He said that in the coming months, the company would focus
on making an entry into smaller towns. It plans to expand its presence to 100
cities by opening retail stores by the end of this year.
He said that the Internet, quick product launches, increasing awareness among
consumers and the rise in disposable incomes have made smaller cities attractive
markets for consumer PCs. Compaq also plans to open service centers in these
cities in an effort to be closer to its customers.
Mr. Swaminathan said that the retail network would continue to be the focus
area of Compaq in the consumer sector. He said that the company was watching the
development of the Indian market for Internet appliances and would introduce the
products at the right time. "However, I feel that there is a top segment of
the market which seems to be ready for such appliances. It also depends on the
kind of products that are made available in the market," he added.