Intel has announced plans to target India's rising demand for personal computers, marking a strategic step up in a country that has mostly been a source for offshore technology skills for the world's largest manufacturer of micro-processors.
The US company's expansion in India comes as lower broadband costs and reduced duties on computer hardware have boosted the domestic market, a traditional minnow compared with India's booming export-driven technology services sector.
Encouraged by these developments, Intel will develop computing platforms for the Indian market. The new products should be ready for launch within 12-18 months.
In spite of recent strong growth, only nine out of every 1,000 people in India possess a computer, in contrast to China where ownership is five times greater. Only 18 per cent of India's eight million small and medium sized businesses own a computer.
"This is about reaching the next one billion users, the bulk of which we believe will come from India and China," said Ketan Sampat, president of Intel's Indian unit.
Intel has begun hiring for its "platform definition centre" in Bangalore, which will develop the new products. Customised features will include energy efficient components to reflect the high cost and poor access to power in rural India. - (Financial Times Service)
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