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PC sales may not reach target: Expert

| Source: JP

PC sales may not reach target: Expert

JAKARTA (JP): Sales of personal computers (PC) this year will
likely fall short of the targeted 350,000 units, a computer
expert said on Friday.

"Looking at the conditions (of the rupiah) these past two
weeks, the target may not be reached," said IBM country manager
for personal systems group Suryo Suwignjo.

"We would like to be optimistic, but for now things don't look
to be improving."

Suryo said the first quarter of 2000 saw sales reach 90,000
units worth approximately US$108 million.

In 1999 PC sales reached 279,000 units ($334.8 million) after
plunging to 74,000 units ($88.8 million) in 1998. This was a big
improvement but still far from the pre-crisis level of 392,000
units ($470.4 million) in 1997, he said.

Computer exhibitions helped boost sales a little because they
target the individuals, while companies holding brand names like
IBM target corporate users, Suryo said.

"Corporate buyers cannot be attracted with computer shows," he
said, noting that companies were reluctant to buy while the
rupiah was still unstable.

The ongoing Indocomfair 2000 at the Jakarta Convention Center
is one of many that have sprung up in recent weeks as foreign and
local computer makers strive to boost sales and market shares.

Hidayat Tjokrodjojo, chairman of the Indonesian Computer
Entrepreneurs Association (Apkomindo), said it was difficult to
sell computers while the country was still in the middle of a
crisis.

Participating in computer exhibitions would help sales, he
said. "Sales are better for those joining the show than those who
do not," he added.

More than 50 companies are taking part in the Indocomfair 2000
which will last until Sunday.

Competing head-to-head with each other for what small market
they have, they fiercely try to attract buyers with bonuses and
extras.

"It's all very well, but the prices are still too high because
they sell in dollars," a visitor at the show said.

Multimedia PCs with international brand names like Packard
Bell, Hewlett Packard, Acer and Compaq were sold at between
$1,050 to $2,990, at the rupiah rate of Rp 8,100 to Rp 8,600.

Mugen, a local computer brand company, sells its multimedia
computers at between $750 to $1,585.

Most sellers say prices will be higher after the exhibition.

For a more down-to-earth prices, many computer shops offer
locally assembled computers, known in local jargon as komputer
jangkrik or cricket computers.

They are priced in rupiah at between Rp 5.9 million to Rp 11.6
million for computers powered with Intel Pentium III.

Bonuses and extras comes in various forms. Packard Bell offers
30 pre-installed software titles, and a choice of a Lexmark
printer or a WinTV card for watching television on the computer.

Hewlett Packard gives away a D-Link Webcam for every Pavilion
series, and an additional HP Deskjet printer for the sale of the
Pavilion 8618 model.

Compaq offers free T-shirts with every computer unit.

And, of course, they also include a free computer table,
computer cover, mouse pad, and stabilizer; items which are
offered by other computer dealers.

"It is better if you buy now, before the rupiah plummets
further," a sales promotion girl at the Hewlett Packard stand
warned. (10)

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