HP to supply 1.5 million laptops for Rs 19,000 per unit to UP govt

Hewlett Packard (HP), PC manufacturing giant, has bagged the contract of supplying 1.5 million laptops to Uttar Pradesh government. The laptops are priced at Rs 19,058 per unit  and it will  be provided to XII standard pass out during the 2011-12 academic year.

 

Other in the race were HCL, Acer and Lenovo for the contract. HCL, Lenovo and Acer had quoted a price of Rs 21,983, Rs 23,919 and Rs 25,199 respectively.

The total supply is worth about Rs 2,858 crore. The state had already made a provision of almost Rs 2,800 crore for giving laptops and tablets to students.

The laptop would comprise 14 inch screen, 2 GB memory, 500 GB hard disk, one year warranty and support English, Hindi and Urdu language.  This contract might help HP as it has been losing market share .

 

“For HP that has been hit by several negative news especially the personal systems group, this is about gaining market share based on volume growth. These kind of deals help you leapfrog your market share. What will be seen is the margin levels that HP is playing. That too when the dollar-rupee is not too favourable for the PC makers,” said Sumanta Mukherjee, lead analyst for computing device at CyberMedia Research.

 

Source – Business Standard