Aakash: Another Tata?

Priscilla Wito’s blog on Aakash, the world’s cheapest tablet, emphasized on how Datawind—the company behind the Aakash—is seeking to “push India forward,”1 by providing affordable technology to students. With a student price tag of $35, the Aakash has a 3 hour battery life, web browsing, video conferencing, and two USB ports.2

 

Image from:
http://www.thehindu.com/multimedia/dynamic/00803/09TH_AAKASH_803535f.jpg

Priscilla linked the Aakash with the Tata Nano, previously discussed in class. My question is: Will the Aakash suffer the same fate as the Tata? As stated in class, the Tata did not remain popular in India for long.

As income increases, consumers tend to purchase better, more expensive, products. As a result, sales for the Aakash might decline drastically after some years. How will Datawind combat this issue and remain profitable? True, it can offer a progressively more expensive, better quality product with more features; however, if consumers are going to spend more money, wouldn’t they then choose to buy on the basis of brand, as well as quality? As with Priscilla, I agree that Datawind has taken a good initiative in offering widely accessible technology with the purpose of enhancing student learning… I just do not see how this business venture can remain sustainable.

Word Count: 198

1. https://blogs.ubc.ca/priscillaw/2011/10/09/datawind-makes-affordable-technological-access-in-india/
2. http://www.bbc.co.uk/news/world-south-asia-15180831

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