HP Bets Big on its Ultrabooks

New Delhi: Computer maker HP expects 15-20 percent of its notebook PC sales to come from the ultrabooks segment by the end of 2013 as a growing number of mobile workers opt for lighter and faster devices.

Ultrabooks are high-end notebooks designed to be lighter, have longer battery life and shorter booting time. The ultrabooks are powered by processors from Intel, which is the driver of the concept.

"We expect that by the end of 2013, 15-20 percent of our volumes will be that of Ultrabook and by 2014-end, it should be around 40 percent. We have a strong lineup of products and across price points, which we think, would be a crucial factor," HP India Vice President and General Manager (Printing and Personal Systems Group) Rajiv Srivastava said.

At present, ultrabooks comprise less than 10 percent of shipments for HP India, he added.

Computer makers are betting big on the ultrabook segment as they present a bigger margin opportunity. With devices starting from 40,000, the prices go beyond 1 lakh depending on the configuration.

Almost all major players like Dell, HCL Infosystems and Toshiba have their products in the category and plan to add more products in the coming months.

"Currently, the contribution of ultrabooks to the overall notebook market is low. It’s also a function of popularity and pricing. As more people go for ultrabooks keeping in mind the functionality and more affordable devices come out, the category will only grow," Srivastava said.

HP has about 8-9 devices in the category under its 'Envy' range and plans more launches in the coming months. He, however, declined to comment on the future product lineup.

"It is a very competitive market and this will only grow. The differentiator will be how technology is refreshed and what experience is provided to the end-consumer," he said.

He added that the ultrabook will not be a very price- sensitive category as the buyers are generally those who have owned a PC earlier and are ready to pay a premium for a good device.

HP has recently launched its Envy SpectreXT, priced 64,990 onwards.

PC sales in the country grew 16 percent in 2011-12 at 10.8 million units over the same period last year, according to hardware industry body MAIT.

Of this notebooks and netbooks sales grew 26 percent to 3.7 million units and 0.28 million units (down 11 percent), respectively, driven by consumer segment. The remaining 6.7 million units were in the desktop category, which grew 11 percent in 2011-12.

For FY'13, MAIT estimates the PC sales to grow 15 percent to reach 12.4 million units.