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)