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AOC plans to disrupt Indian PC, TV market
Published on 7 Apr. 2010 11:47 PM IST
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Hit by a plateauing sales of its computer monitors in India, AOC, the world’s largest PC display maker, has diversified into the Indian PC and TV market. In what is certain to disrupt the flat panel TV market, AOC has priced its offerings 15-20% lower than the Korean brands.
The firm, which sold around 2.5 crore monitors in India last year, a third of the market, also promises to intensify the price competition in the non-laptop PC market in India. It’s 18.5 inch ‘all in one’ PC, which has an entire PC attached to the back of the monitor, will start at around Rs 19,000. Its high-end monitor-cum-PC too is around Rs 10,000 cheaper than models from the established brands.
While the number of monitors it sold in India increased from 18 lakh in 2007 to 24 lakh in 2008, the number remained the same in 2009. The price difference between desktop and laptop computers have narrowed to just around Rs 5,000 for the mass segments. As a result, growth in desktops - the only segment in which AOC operates - has slackened to 10-15% even as laptops are growing at 60-70% per year.
TPV also announced its entry into the cut-throat flat-panel TV market, currently dominated by Samsung, LG and Videocon. Here too, the company, which has a 7% global marketshare in the business, will price its offering considerably below those of the competition. Whereas the Korean brands cost around Rs 28,000 for the most popular 32-inch LCD segment, AOC will start off at 23,000, in the same league as the cheapest brands in India. The company produced around 56 million (5.6 cr) LCD displays last year, a fifth of which were meant for TVs. 80% of its panels are bought by other brands like LG, Philips etc.
With around 30% of the global LCD monitor and TV market, the company’s volumes help it to achieve lower costs than most competitors.

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