The ascendency of India as an economic world power

India may be the land of outsourcing but the reality is that most people in India do not own a PC. Most families simply cannot afford to buy a computer simply because it is too expensive for that. Thus, there is a huge untapped market in India for the computer companies. Microsoft has joined hand with AMD to introduce a budget PC within $500.

Houston Chronicle repoted:

Microsoft, with chip-maker Advanced Micro Devices Inc. and Indian PC maker Zenith Computers Ltd., said the $500 "IQ PC" runs the most basic version of the Windows Vista operating system and comes packed with the Office suite and programs to help students practice English and prepare for exams. The computer and related online content will be available in Bangalore and Pune on Sunday.

In a blog post, Orlando Ayala, a senior vice president for Microsoft's emerging segments market development group, described the computer as "low cost" and "affordable."

I am not too much excited with the idea that it will be "low cost" and "affordable" for Indian market. Of course, many middle class families will like "IQ PC" and would surely love to have one for their children. So, Microsoft will not suffer any set back with "IQ PC". I am really happy to see that Microsoft is now serious about providing low cost computers to the ordinary people in India.