Intel to power low-cost PCs in India

By agencies   |   Tuesday, 23 May 2006, 07:00 Hrs
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BANGALORE: The world's largest chipmaker, said today it would spearhead an initiative to sell cheaper computers in India to increase usage in Asia's third largest economy.

Intel, which is facing intense competition from smaller rival Advanced Micro Devices Inc also plans to win back market share during 2006 as rising PC sales in emerging markets are seen offsetting mature demand in most western countries.

India's cheapest desktop now costs about $220. However, although India is a globally recognized software developer, penetration rates are abysmal due to high prices and the absence of reliable power in vast parts of the country.

A new desktop computer with an energy-saving microprocessor will be available at 20 percent less than the lowest price, Intel Chief Executive Paul Otellini said as he began his first visit to India.

Otellini said, "People really want a full-featured personal computer. They want optical drive, they want full-featured operating system. They want to be able to run games. They want Internet access. They want all the applications. No one wants to cross the digital divide with old technology."

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