Business

Thursday 31 October 2013

Google Chromebooks likely to struggle in India

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With most vendors positioning it as a 'secondary device', Google's latest personal computer Chromebook may struggle to attract attention in India, a highly competitive marketinternet penetration beyond cities is low. 

Industry experts said that while the web-centric device may draw interestsome users, its initial sales are expected to be weak due to low broadband penetration in India and competitionexisting PC brands, 90% of which are based on Microsoft's Windows operating system. 

"There is a high probability that some customers will buy Chromebooks, but it will take some time for it to become the primary computing device," said S Rajendran, chief marketing officer in India for Taiwanese device maker Acer. 

In India, currently HP and Acer are selling Chromebooks, with more device-makers expected to join. The Chromebook was launched in India two weeks ago, nearly two years after its US launch. It runs on Google's Chrome operating system and lets users download popular software applications such as Gmail, Youtube as well as othersits online app store. 

Priced between Rs 23,000 and Rs 27,000, Chromebook is Google's first attempt to dominate the laptop/netbook market, after finding success in the smartphone segment with its mobile operating software Android. Over 60% ofsmartphones sold in India are based on Android, according to analysts' estimates. 

Acer's Rajendran however does not see Chromebooks as being a "substitute for Windows 8," Microsoft's latest operating system for PCs, tablets and smartphones. Google told ET that it will use a similar strategy (to that of Android) to sell the device and that it expects more device makers, including Indian manufacturers, to develop Chromebooks over the coming months. 

"We position Chromebook as a post-PC era device, which will have the capabilities of a traditional laptop, but will be faster and works with the flexibility of a tablet," said Caesar Sengupta, product management director at Google. Lenovo told ET it will launch Chromebook in India by the middle of next year but sees "very limited opportunity initially."

"Users need net connectivity always to log in into Chrome OS and not every user will be comfortable using cloud computing and Chrome OS," a Lenovo representative said.

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