Microsoft hardware demand picks up; Logitech’s share dented

The past three months have witnessed a steady increase in demand for Microsoft hardware which includes input devices like mice and keyboard as well as gaming devices. Revealing that Microsoft's marketshare in this segment has also increased, market sources peg it between 12-15 percent as compared to five to seven percent six months ago. 

Resellers believe that Microsoft is offering a tough competition to Logitech because of its highly-competitive pricing, longer warranty period and better support and services. 

Says Ashish Agarwal, Director, Trifin Technologies, “Price rationalization has been one of the most important factors behind the increasing demand for Microsoft mice. Its entry-level mouse, which was priced nearly Rs 800 a year ago, is today selling at Rs 450.” Incidentally, an entry-level Logitech mouse today sells at around Rs 490. For other models too, Microsoft has drastically reduced prices to bring it at par with those of Logitech’s.

Says Ketan Patel of Mumbai-based Creative Computers, a reseller dealing both in Logitech and Microsoft, “Presently we are selling as much as 2,500 Microsoft mice, 400 keyboards and around 100 cordless desktops every month, which is nearly 80 percent volume growth compared to three months ago.” Ketan attributes warranty as another factor strongly helping Microsoft in building up its brandshare. “While most of Logitech products carry just one-year warranty, Microsoft offers warranty ranging from one to five year.” 

Adds Sanath Babu, MD, Bangalore-based Sri Durga Enterprises, “Price is not the sole driving factor. I think the demand for Microsoft product is increasing also because of its zero rejection rates.” According to Ketan, the margins are also better in Microsoft mice and keyboards. Ashish feels that the currently running schemes like 'Trekker Karay Duniya Ki Sair' and 'Diamonds Are Forever' have also helped in increased sales. “Buy-back scheme like the Power Exchange, targeted at the end-user has been extremely successful,” informs

Sanath. 

Resellers also felt that the volume sales in the OND quarter would increase anywhere between 40 and 60 percent.

However, this success in the reseller market seems to have made Microsoft change its mind about its OEM business. Reliable sources reveal that the company may soon stop supplying to OEMs and would just concentrate on the reseller channel as there is more money to be made there. Microsoft officials however were not available for comments.

GOLDIE With inputs from MOHIT CHABBRA in New Delhi and SUNILA PAUL in Bangalor