Computers & Peripherals<\/p>\n
Marketing Perspective (1)<\/p>\n
Personal Computers
\nMore Innovative, More Affordable<\/p>\n
Burhanuddin Abe
\nContributor\/Jakarta<\/p>\n
Today computers are no longer luxury goods, and are used both
\nat home and in offices. Indeed, some buyers are very particular
\nabout their computers as they need smart devices with high
\nperformance for various applications such as three-dimensional
\ndigital games, or video and photo editing, for which fast,
\npowerful and expensive processors are needed.<\/p>\n
However, most computer buyers do not need the sophistication
\nof their machines. They often need a computer with just enough
\ncapacity for word and figure processing, or for accessing the
\nInternet to visit websites or check their email.<\/p>\n
If you go to Glodok in Kota, downtown Jakarta, for example,
\nyou can easily find inexpensive computers, usually made in Taiwan
\nor Hong Kong. Some of them are even domestically assembled with
\nperformance as good as that of branded personal computers.<\/p>\n
Although rather behind the times compared with the markets in
\nother countries, the computer market in Indonesia will never
\nbecome sluggish because there is an increasing need for computers
\nfollowing the outbreak of the digital revolution that has
\ntransformed our lifestyles. It is this need that computer vendors
\nare not capitalizing on. New computer sales centers have sprung
\nup not only in Glodok but also in malls and plazas like in ITC
\nMangga Dua, Mal Mangga Dua, WTC Mangga Dua, Mangga Dua Square,
\nWest Jakarta; Audio Plaza Menteng in Central Jakarta; Ratu Plaza
\nin South Jakarta and also in various shopping centers like
\nCarrefour. Also worth mentioning is the establishment of the
\nJakarta Electronic Center, at SCBD (Sudirman Central Business
\nDistrict) and Mal Artha Gading.<\/p>\n
Electronics centers have been using a variety of techniques
\nand tactics in their attempt to attract customers, among others
\nby maximizing the products they sell and providing the best
\nservice. Most vendors apply a credit purchase system and promote
\nthis system in the mass media.<\/p>\n
\"Given the present condition, it is hard to find buyers ready
\nto pay cash,\" said Salim Ngaserin, a computer vendor at Mal
\nMangga Dua.<\/p>\n
There is a common thread running through the sales strategy
\nadopted by the computer vendors. They believe that Indonesian
\nbuyers are highly price-sensitive. Therefore, local computer
\nmakers, like Berca Group, which develops its Relion brand for
\ndesktop computers, notebooks and servers, for example, are quick
\nto seize this opportunity.<\/p>\n
As a new computer brand, Relion has a good chance to develop
\nin the domestic computer market, just like other domestic
\ncomputer brands such as Mugen and Zyrex. These domestic computer
\nmakers can sell their products at relatively lower prices than
\ninternational computer makers.<\/p>\n
In fact, however, not only local computer makers but also
\nnoted computer producers have found it difficult to market their
\nproducts here. Aside from launching their sophisticated
\ncomputers, they, like it or not, are compelled to sell
\ninexpensive products. Intel Corp., for example, has started to
\noffer its buyers AMD (Advanced Micro Devices) processors of the
\nSempron and Athlon series, which are sold at very affordable
\nprices. Meanwhile, other world-famous computer manufacturers,
\nlike Dell, Acer, Lenovo-IBM and HewlettPackard (HP) have also
\ndone likewise.<\/p>\n
In Indonesia, HP introduced the Pavilion PC w50701 desktop
\ncomputer, whose construction design is the same as that of the
\nprevious types. While the features of the two types are similar,
\nPavilion PC w50701 desktop computers are sold at a much lower
\nprice than the earlier ones. At the low-end, a desktop using a
\nAMD Sempron 3100+ processor with a speed of 1.8 GHz and 256 MB
\nmemory, a 17-inch CRT monitor and a SiS 760\/964 motherboard
\nchipset shows a satisfactory performance. The price? Not more
\nthan US$599.<\/p>\n
Meanwhile, Apple Computer Inc., usually known to manufacture
\nthe most expensive of Wintel-based computers -- computers using a
\nMicrosoft Windows operating system with an Intel processor -- has
\nbegun to correct its prices by launching its second-line
\nproducts. After a successful mass and phenomenal marketing of
\nthe MP3 digital music player, commonly referred to as iPod, Apple
\nfounder, Steve Jobs, introduced the Mac Mini.<\/p>\n
Small in size and light in weight, this computer set, which
\ncomes out in a very attractive design, possesses all the
\ncomputing capacity that we need either for doing our work,
\nlistening to music or editing photos. Apple alone refers to it as
\na cheap computer, using a 40 GB hard disk and a G4 processor with
\na speed of 1.25 GHz, and is sold for US$499, while the version
\nusing an 80 GB hard disk and a G4 processor with a speed of 1.42
\nGHz is sold for US$599.<\/p>\n
This computer set is not yet a trend but at least it has
\nbecome an alternative product for computer buyers. Mac Mini may
\nbecome a breakthrough for all Apple products as well as the
\nproducts of Apple's close rivals like IBM and HP, which tend to
\nbe facing a stagnant market.<\/p>\n
It can be understood why IBM sold its personal computer
\ndivision to China's Lenovo. IBM is known as a legendary computer
\nmanufacturer with many patented innovations to its credit.
\nHowever, the problem facing the company was how to sell these
\ninnovations as lucrative commodities.<\/p>\n
Partnering with Lenovo not strengthen its position as a
\ncompany controlling the worlds computer market but also enabled
\nit to explore the Chinese market, which offers vast potential.<\/p>\n
Indonesia, a country with a population of over 220 million
\npeople, is also a highly potential computer market, especially
\nbecause computers are used not only in working environments but
\nalso for educational and entertainment purposes. Still, the
\ndemand for computers in Indonesia averages only 500,000 to
\n600,000 units annually.<\/p>\n
In fact, the demand for computers in Indonesia should stand at
\na minimum of 1.5 million units a year, said Herwawi Taslim,
\nchairman of the Indonesian Association of Computer Companies
\n(Apkomindo).<\/p>\n
It is understandable that the demand for computers in
\nIndonesia is still very low. The reason is that all computer
\ncomponents are imported from Japan, Thailand, China, Taiwan and
\nseveral other countries. That's why it is necessary to create an
\ninvestment climate that will encourage foreign investors,
\nparticularly foreign computer manufacturers, to set up their
\nplants in Indonesia. \"If computer producers set up factories
\nhere, the prices of computers in Indonesia can be slashed,\" he
\nnoted.<\/p>",
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