Opportunity for Asus as India's PC Market Continues to Grow

Opportunity for Asus as India’s PC Market Continues to Grow

by Tom Misch
in News, PC
on 9 June 2024

The personal computer (PC) market in India presents a promising growth opportunity for Taiwanese tech giant Asus, according to senior company officials. With a PC penetration rate of only around 10 to 11 percent per household in India, there is significant untapped potential for Asus to cater to the needs of a large population that still does not own a PC.

Arnold Su, Asus India’s consumer and gaming PC vice president, highlighted the favorable conditions in India’s PC market, stating, “Around 90 percent of Indian households still do not have a PC, which means it is a very good opportunity for us.” To capitalize on this market potential, Asus is actively investing in India and expanding its product availability across the country. Currently, the company has a presence in approximately 450 out of India’s 750 districts and aims to reach even more consumers.

Peter Chang, Asus general manager for the Asia Pacific System Business Unit, acknowledged that the demand for PCs globally and in India has been affected by the COVID-19 pandemic. However, he expressed optimism for a rebound, noting that the interest to purchase laptops has increased. Chang also credited India’s PC market as being better than the rest of the world.

Despite a decline of around 30 percent in PC shipments in the Indian market in the first quarter of 2023, according to market research firm IDC, Asus remains confident in the long-term prospects. Artificial intelligence is a major focus area for the company, as it looks to incorporate innovative technologies into its products.

Regarding India’s IT hardware production-linked incentive (PLI) scheme, Chang revealed that Asus has already applied for the scheme and is actively manufacturing in India. He emphasized the company’s commitment to evaluating its investments in India and expressed hope for smooth operations to enable further expansion.

With the supply chain disruptions in the PC industry now resolved and the Indian market primed for growth, Asus is well-positioned to leverage this opportunity and establish itself as a leading player in India’s PC market.

Key Facts:

1. The PC penetration rate in India is currently around 10 to 11 percent per household.
2. Around 90 percent of Indian households still do not have a PC.
3. Asus is actively investing in India and expanding its product availability.
4. The company currently has a presence in approximately 450 out of India’s 750 districts.
5. Asus aims to reach even more consumers in India.
6. The demand for PCs globally and in India has been affected by the COVID-19 pandemic.
7. Interest in purchasing laptops has increased in India.
8. Despite a decline in PC shipments in the Indian market in the first quarter of 2023, Asus remains confident in the long-term prospects.
9. Asus is focusing on incorporating artificial intelligence and innovative technologies into its products.
10. Asus has applied for India’s IT hardware production-linked incentive (PLI) scheme and is actively manufacturing in India.

Key Questions and Answers:

1. What is the PC penetration rate in India?
– The PC penetration rate in India is currently around 10 to 11 percent per household.

2. How many Indian households do not have a PC?
– Around 90 percent of Indian households still do not have a PC.

3. Is Asus investing and expanding in India?
– Yes, Asus is actively investing in India and expanding its product availability.

4. How many districts does Asus currently have a presence in India?
– Asus currently has a presence in approximately 450 out of India’s 750 districts.

5. How has the COVID-19 pandemic affected the demand for PCs?
– The demand for PCs globally and in India has been affected by the COVID-19 pandemic.

6. Has the interest in purchasing laptops increased in India?
– Yes, the interest in purchasing laptops has increased in India.

7. Despite a decline in PC shipments, why does Asus remain confident?
– Despite a decline in PC shipments, Asus remains confident in the long-term prospects of the Indian market.

8. What focus area does Asus have to incorporate innovative technologies?
– Asus is focusing on incorporating artificial intelligence and innovative technologies into its products.

9. Has Asus applied for India’s IT hardware production-linked incentive (PLI) scheme?
– Yes, Asus has already applied for India’s IT hardware production-linked incentive (PLI) scheme.

Key Challenges or Controversies:

1. The COVID-19 pandemic has negatively impacted the demand for PCs globally and in India.
2. Despite the long-term prospects, there was a decline in PC shipments in the Indian market in the first quarter of 2023.
3. Asus faces competition from other PC manufacturers in India.
4. The success of Asus in India’s PC market relies on its ability to effectively expand its reach to more consumers.
5. The supply chain disruptions in the PC industry could pose challenges to Asus’s operations in India.

Advantages and Disadvantages:

Advantages:
1. Asus has a significant opportunity in India’s PC market due to the low PC penetration rate.
2. The company’s investment and expansion efforts in India show commitment to the market.
3. Interest in purchasing laptops has increased, presenting a potential growth area for Asus.
4. Asus’s focus on incorporating innovative technologies like artificial intelligence can set it apart from competitors.

Disadvantages:
1. The COVID-19 pandemic has impacted the overall demand for PCs, which could affect Asus’s sales in the short term.
2. Asus faces competition from other PC manufacturers in the Indian market, requiring differentiation and marketing efforts.
3. The decline in PC shipments in the first quarter of 2023 shows a challenging market environment.
4. The supply chain disruptions in the PC industry could affect Asus’s operations and availability of products.