Ericsson to cut its cellular phone prices<\/p>\n
JAKARTA (JP): PT Ericsson Indonesia, the local subsidiary of a
\nSwedish telecommunications firm, is to cut the price of its
\ncellular telephones in response to the stronger rupiah, an
\nexecutive of the company said here on Tuesday.<\/p>\n
Ericsson Indonesia president Mats Olsson said the adjustment
\nwas needed because the price of cellular telephones, like other
\nimported goods, follows the rupiah-U.S. dollar exchange rate.<\/p>\n
However, he was reluctant to disclose how much his company
\nplans to cut the price of its mobile phones, which currently
\nretail for between Rp 1.6 million and Rp 4.4 million in
\nIndonesia.<\/p>\n
The rupiah, which plunged to a low of Rp 17,000 against the
\nU.S. dollar in January, has stabilized at between Rp 7,500 and Rp
\n8,000 since early October, still well below the pre-crisis level
\nof around Rp 2,500 in July, last year.<\/p>\n
The collapse in the value of the rupiah resulted in a sharp
\nprice increase in all imported products, including mobile phones.<\/p>\n
Olsson said he hoped the rupiah would strengthen further to
\nenable his company to sell cellular telephones at even lower
\nprices.<\/p>\n
He said lower prices would help Ericsson to boost sales in
\nIndonesia, one of the company's main markets in the Asian region,
\nadding that facilities such as new service centers would be also
\nbe developed as part of a drive to further increase the companies
\nshare of the market.<\/p>\n
Speaking to reporters following the opening of a service
\ncenter in the ITC Shopping Center, Central Jakarta, Olsson said
\nthe Indonesian cellular market was tight this year as a result of
\nthe economic crisis.<\/p>\n
But he said that sales would pick up again next year in line
\nwith a recovery in the economy.<\/p>\n
He estimated that sales would increase by 50 percent next year
\nfrom about 100,000 units this year.<\/p>\n
Olsson said that Ericsson currently has 10 service centers in
\nIndonesia and plans to increase the number to 40 in the future.
\n(29)<\/p>",
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