Capitalmind
Capitalmind
Actionable insights on equities, fixed-income, macros and personal finance Start 14-Days Free Trial
Actionable investing insights Get Free Trial
Stocks

Smartlink To Make Tablets for Rs. 5000-7500

From mydigitalfc:

Buoyed by the success of tablet personal computers (PCs) in the Indian market, BSE-listed Smartlink Network Systems plans to launch a tablet PC in the domestic market in the next calendar year. “The tablet will be priced around Rs 5,000-Rs 7,800 against existing Apple iPad and Asus Eee Pad tablet that are priced in the range of over Rs 35,000-Rs 40,000,” KR Naik, executive chairman of Smartlink Network Systems told Financial Chronicle.

Naik said that the company would be purchasing chips and software for the tablet from US-based companies. “We will manufacture the tablet at our plant in Goa. It will have features like iPad,” he added. The Smartlink tablet is also expected to run Google’s Android platform, which is used in many existing tablets sold now. The tablet will be in 7-inch and 10-inch size.

I was talking about this recently; about how a reduced BOM can make tablet manufacturing a good business for an Indian player. A 10 inch tablet at sub-10K – now that will be very very interesting.

Disclosure: Long the stock.

  • rrp says:

    The devil is in the details 🙂
    Even now there are many less priced tablets than iPad or Samsung in market (look in flipkart)
    But they will be unusable
    – drain battery in 3 hours with usage
    – drain battery in a day without any usage
    – less responsive screen, pain to use
    – less powerful cpu
    – come with its own market place where developers wont put any app as they are not well known (ie small players trying to emulate really big players LOL)
    – everything will be scaled down or inferior components
    I just went through few reviews of products in flipkart, this is what i could gather.
    BTW isnt there a Govt Aakash tablet (made by foreign company) at < 10K. Its situation will be the same i guess.
    Better buy Amazon Fire now or 2.0/3.0 when it comes at 10K if we want a quality smaller tablet. (else go for ipad or samsung tablet) . Amazon's will be quality one.

  • DJ says:

    Duh, Kindle Fire running on Android and running “US” apps is $200 or 10K anyway. What’s the big deal? Especially if as he says: he will buy chips and software from US companies. I would rather have customs taken off of tablet imports. And, the Ipad is 35K/40K only because of customs. The basic version is $500 (with further discounts) which is 25K.

  • Adheer Pai says:

    I suspect this is just vaporware – a ploy used by the management to generate buzz about the company. See the stock is already up 10%.
    The company is into manufacturing of cables and cable connectors – a pretty much bottom-rung technology space. Most of their products are copper-wire based, and now seem to have now transitioned into fiber optics. Their current products don’t even have ICs (Integrated Chips), let alone micro-processors and more advanced circuity.
    Designing tablets from a scratch is out of question. And manufacturing tablets in India is not child’s play.
    It is amusing that a mediocre company with no techological laurels to its credit, wakes up one fine day and makes a bold claim to build products competing (or feature-comparable) with Apples iPad or even middle level tablet companies.
    Talk is cheap.

  • Alexy says:

    Definitely. After working in embedded systems for long enough and having worked with a bunch of companies making Tablets and having used a lot of the good tablets and a bunch of the bad ones, i can say for sure that this is just a marketing stunt. There are enough crappy tablets in the sub 10k range. Its impossible to make something that responds like the ipad in that price range.
    @deepak i did not expect that you would be writing about such a cheap marketing trick.

    • I’m not sure this is competition for the ipad, but it’s competition at the sub 10K range. I don’t think it’s a “cheap marketing trick” – there is a reasonable amount of demand for the <10K tablet range, if they can get their stuff together. They don't usually make any vapourware – he said he'd get into motherboards, and he has, he's done pretty much everything he said he would do. These guys have a great distribution network, and I'd like to see them get into the low-end-tablet market in India, which I think is awesome for a power starved country like ours.
      I also think "good" and "bad" are subjective. To many people even the 3K seven inch is a good tablet.