Intel Corp, the world's largest chip maker, said on Tuesday it would spearhead an initiative to sell cheaper computers in India to increase usage and world's third-largest economy.
"Systems will be priced 20 percent less than the lowest priced Intel-based PCs in India with similar configurations," Intel said in a statement as its Chief Executive Paul Otellini began his first visit to the country.
The desktop will be available in two months and will be marketed by Indian companies like Wipro Ltd and Zenith Computers Ltd Intel will also collaborate with ICICI Bank Ltd to facilitate loans for buyers. India's cheapest desktop now costs about 10,000 rupees ($220). Although India is a globally feted software developer, desktop penetration is abysmal due to high prices and the absence of continuous power supply in vast tracts of the country.
Intel, which is facing intense competition from smaller US-based rival Advanced Micro Devices Inc, plans to spend $1 billion over the next five years to promote Internet use and computer training in developing markets.
The programme, dubbed "World Ahead" aims to bring high-speed wireless Internet access to 1 billion people who can't get online.
Intel would also work closely with Indian telecoms firm Videsh Sanchar Nigam Ltd, part of India's Tata group, to offer wireless broadband connectivity at railway stations.
In December, Intel said it planned to invest more than $1 billion in India to strengthen its research and development and pick up stakes in telecoms and technology start-ups.
California-based Intel, which has a huge development centre in the Indian technology capital, Bangalore, has invested $700 million in India over the past decade.