By Abhijeet Mukherjee, CRN, November 30, 2011, 1115 hrs
The All-In-One PC has come of age. The sales figures are not really huge,but it’s the fastest-growing segment in the desktop market
The hype surrounding All-In-One (AIO) PCs is finally becoming justified as both vendors and partners are reporting renewed interest among customers for these smaller footprint desktops. These customers include both individual and enterprise users.
Growth factors
Affordable pricing and captivating designs are being seen as the primary reasons for consumers to buy AIOs. At the same time, enterprises are seeing the benefits of smaller footprints because they occupy less real estate on the desktop. IDC India has predicted that by 2013 small form factor products like the AIO have the potential to account for nearly 38 percent of the overall desktop market. Gartner India estimates the present market size to be less than one lakh units per quarter, which is approximately 7 percent of the Indian desktop market. “The numbers are not really big, but it is certainly the fastest-growing segment in the desktop market,” observes Vishal Tripathi, Principal Analyst, Gartner India.
Says Shishir Singh, Director, Product Marketing, CSMB, Dell India, “Two years ago the AIO market share was only 1 percent, but according to Q22011 IDC data, the market share for AIOs is 15 percent in the consumer segment and 20 percent in SMBs.”
“AIOs have certainly been a hit with consumers, especially the buyer looking at a desktop for the entire family. With additional features such as a TV tuner card, high-end graphics and DVD bundles, PC vendors have certainly done their bit to bring in customers,” remarks Tripathi.
Demand from segments
Consumers are driving the AIO business in India; the consumer segment accounts for at least 55 percent of the demand while the rest comes from the enterprise segment, including SMBs. “At present the consumer market is growing at the rate of 35 percent, and the demand is more from families with kids,” adds Singh of Dell.
To strengthen its focus on the consumer segment, Dell India has started promotional activities for its Inspiron range of AIOs. The company is taking the products, priced at Rs 33,000-35,000, to students across schools and to residential housing societies in the top six cities of the country. The promotional activities include ‘Study Buddy’ for schools and ‘Coolest AIO Family’ for residential complexes. For the consumer segment Dell has models which come with Intel Core i3, i5 and i7 processors, as well as screen sizes ranging from 20” to 24”.
Another segment driving the business is the commercial segment, especially the SMB, SOHO, BPO and retail sectors. According to market analysts, there are 50 million SMBs in India; this translates to huge potential since out of this only 20 percent companies are using PCs. “The commercial segment has great potential in India as most of the demand is coming from the retail sector, which is growing tremendously. With the increasing number of BPOs every year, the demand for AIOs would be on the rise,” observes Meraj Ahmed, Country Manager, Desktop Organization, PSG, HP.
The Indian retail industry is growing at a rapid rate. It is estimated that total retail sales in India will grow from $395.96 billion in 2011 to $785.12 billion by 2015; the demand for AIOs will also grow, feel analysts. The Indian BPO industry keeps growing, and Gartner expects higher demand through 2015. “AIOs are in demand in the commercial segment because their sleek design enables them to occupy less office space, and because they consume 40 percent less power,” explains Ahmed.
New SKUs
Keeping in view the increasing demand, vendors such as HP have come up with AIOs dedicated to business use. The HP Compaq 8200 Elite AIO Business Desktop features a 23” full high-definition LED monitor, an integrated Webcam, a microphone and speakers. It comes with a 1-year HP Virtual Rooms license which allows businesses to conduct presentations, team meetings, training events and classes in an easy-to-use online conference center. Besides, it features a number of advanced HP Elite-class security tools to help protect critical business data; these include a standard embedded TPM 1.2-compliant security chip for hardware-based encryption.
Dell has its Vostro range of AIOs dedicated to SMBs. “Our Vostro 360 is the most popular product. To attract SMB customers we have included special features such as two heat pipes instead of one to make the PCs silent as these are used by professionals like fashion designers and photographers,” informs Singh.
Meanwhile, Lenovo has introduced a range of sleek and space-saving AIOs, the Lenovo ThinkCentre M70z and Lenovo ThinkCentre M90z, apart from its A series (A58, A70 and A70z) that’s dedicated to small businesses. These AIOs consolidate a traditional desktop with a monitor in a single, compact unit offering a blend of sophistication and simplicity. The company has outlined a 360-degree approach to the market to make a decisive impact in the high-growth SMB segment. Says Rajesh Thadani, Director, Consumer Business Unit, HSB Lenovo India, “Globally we are the No 1 vendor in the AIO space. We have been focusing on introducing affordable models, and have a range starting at around Rs 20,000 on the street.”
Better pricing by PC vendors has also helped. Comments Gireesh Kumar, Proprietor, Techies Zone, a retail shop in Bengaluru, “Initially these products were priced very steep. In many cases, when you compared an ordinary desktop to an AIO of similar configuration from the same brand, the pricing was almost 20-30 percent more. The premium is now down to less than 10 percent, hence fewer consumers consider price as a reason not to buy an AIO.” He says that he sells around 25 desktops per month, and that one out of every two desktops sold by his retail shop are AIOs. “Today there are just two types of consumer desktop buyers—those who are value-conscious and buy an assembled machine, and those who buy an AIO. |