Sun, 19 Jun 2005

Plasma TVs attract more consumers

Kurniawan Hari, The Jakarta Post, Jakarta

With all of its technological advantages -- and now decreasing price -- Plasma TVs will likely attract increasingly more consumers here.

So far, the biggest consumers of these high-end products is still the corporate sector, while the number of products purchased by individuals is still relatively small.

"The corporate sector is still the biggest consumer for these products," managing director of PT Samsung Indonesia Lee Khang Hyun told The Jakarta Post here on Wednesday.

With a price tag at US$4,000 per unit -- the price varies depending on model -- only the wealthy and the corporate sector can afford these TVs.

The newly opened Ritz-Carlton Hotel in the Mega Kuningan business district in South Jakarta has purchased 300 Plasma TVs while the Mangga Dua Square shopping mall in West Jakarta has bought 200 units.

Lee added that on average his company sold 200 Plasma TVs a month. It is the biggest selling so far in the country.

According to Lee, his company produces Plasma TVs in various sizes. However, consumers mostly buy the standard 42-inch Plasma TVs with the lowest price of US$3,000. The price has significantly decreased, from $4,000 early this year and $5,000 last year.

Plasma TVs offer a much better picture quality in terms of sharpness and brightness compared to conventional TVs. They are able to display 16.77 million unique colors, thus providing a highly accurate and lifelike picture.

Given its size and light weight, and especially its thinness, it is the most suitable type of TV for home theater.

The increasing number of Plasma TV consumers has drawn PT Samsung's competitor PT LG Electronics Indonesia (LGEIN) to also pay more attention to this product.

This company expects to start increasing production of Plasma TVs in the third quarter of this year.

Given its high price, LGEIN, a local unit of South Korean LG Electronics Inc., will target their marketing efforts at the commercial market, such as office buildings, hotels and shopping malls, rather than individual customers.

This year's market for Plasma TVs is estimated to reach 6,000 units, an increase from around 2,000 to 3,000 last year.

In order to attract more buyers, PT Samsung Indonesia has launched its Samsung Digital Plaza located in Plaza Pondok Indah in March.

This plaza presents Samsung Electronics' premium products and technology, including its Plasma TV, that are already available locally as well as those that have been introduced in other countries and have yet to be made available here.