Mobile phone business thriving 'amid crisis'

Mobile phone business thriving 'amid crisis'

JAKARTA (JP): The economic problems over the past two years
have not discouraged Jakartans to buy mobile phones, distributors
of cellular phones said on Wednesday.

They said that even during the economic downturn, sales of
mobile phones were booming. Distributors noted the trend and
believed cellular phones were a promising business which would
last for the next five to 10 years.

One of the mobile phone distributors at ITC Roxy Mas shopping
center in West Jakarta claimed that he could sell up to 5,000
mobile phones per day, of mostly the newest model, with average
prices of Rp 2 million (US$295).

Other distributors said they could sell 200 mobile phones per
day even during the low season. However, that happened only once
this year; two weeks after the general election in June, when
most businesses were sluggish for nearly a month.

One of the distributors said that he had invested Rp 2 billion
in the business and enjoyed good profit thus far.

Some retailers said the mobile phone business increased after
last year's riots in May. Many people bought the phones for easy
communication access with relatives to ensure them about their
safety. Mobile phones seem to answer their need.

Since then business has continued, and about 400 retailers in
Roxy Mas claim they can sell at least four mobile phones a day.

Just a hobby

Many customers agree that mobile phones are trendy and
important for business or daily activities.

"It's like a hobby. I feel a little bit insecure without
holding it," said Titi, a housewife. She told The Jakarta Post
that she had two mobile phones and planned to buy another.

Another customer, Michael, who is an employee, said he traded
his cellular phone in for the latest model once every three
months. "I get bored using the same phone for too long," he
added.

A film actress, who asked for anonymity, said she owned five
mobile phones. She claimed that she needed all five to help her
career and protect her privacy. "I have never given two of my
cellular's numbers to anyone but my family and boy friend," she
explained.

Consumers in the capital city can buy either licensed or
unlicensed mobile phones which are available in most retail
shops.

Licensed phones are sold at a higher price than unlicensed
ones because they include a 10 percent value-added tax imposed by
the government. Owners of licensed phones can enjoy better
service if it breaks.

The unlicensed phones, known as black market (BM) goods,
provide no guarantee. (04)