In a PC market that is struggling to grow, manufacturers have a reason to cheer for . Government procurement orders usually tend to be a boon in disguise at such times.
The Tamil Nadu government is buying an additional 5.65 lakh laptops for distribution among school and college students, according to a report.
A global tender to procure laptops has been issued by the Electronics Corporation of Tamil Nadu for the third phase of this project. Major Indian and international manufacturers like Hewlett Packard, Acer, Lenovo and HCL are expected to take part in the tender. (Source)
According to the tender, manufacturers submitting a bid should have an annual production capacity of at least one lakh units and should have sold at least 50,000 laptops in any one of the 3 previous audited years.
Only students plus two students from Government and Government aided schools along with with students of Government and Government aided arts and science and engineering colleges and polytechnics are eligible for this scheme.
The state Government had procured and distributed 8,98,866 laptops in the first phase and 7,55,552 laptops in the second phase.
Back in 2012 this project had helped Lenovo increase its PC shipments by 86% and maintain the No.1 position, as it had bagged a substantial part of the state Government’s procurement order.
Laptops were promised by Akhilesh Yadav of Samajwadi Party which rose to power in UP as well. Recently the Uttar Pradesh(U.P) Government was criticised for dumping undistributed laptops in godowns, and letting them rot by exposing them to dust and rain water. Only 79,000 of the total procured laptops had been distributed and the remaining are rotting away in the godowns.
The Samajwadi Party run U.P Government had promised giving students free laptop during its election campaign. Nearly 4.4 lakh laptops were procured by the U.P Government, at a cost of Rs 830 crores, for this scheme. PC manufactured Hewlett Packard had bagged the order for this project.
According to a recent report, Notebook and Netbook sales in have been seeing a stunted growth. The Notebook sales posted a growth rate of only 16% this fiscal, compared to 22% rate in the last year. Netbook sales saw a decline of 68% from the previous year.
At times like these, such large procurement orders from the government can really help manufacturers in this period of negative sales. On the flipside, most manufacturers are also aware of the delay in payments they will face in the case of dealing with Government orders.
Hopefully at least this time around, the students will benefit from the laptops instead of the manufacturers and political parties.