Price hike won't affect sales of mobile phone

JAKARTA (JP): The price rise of cellular phones following the rupiah's recent drop against the U.S. dollar will not have a significant impact on sales, an executive has said.

Rudiantara, a commissioner of PT Excelcomindo Pratama, said here yesterday he was optimistic the dollar's surge against the rupiah would not affect sales because telephones including mobile phones had now become a necessity for the people.

"There's no significant impact on the telecommunications industry, particularly the cellular phone business, as telecommunications is now a basic need," Rudiantara said.

Cellular phone prices have increased 10 percent to 15 percent following the rupiah's recent drop against the American greenback.

Excelcomindo is one of three Global System for Mobile communications (GSM) operators.

The rupiah has lost over 20 percent since early January, most of which took place in the past few weeks due speculative attacks from local and foreign fund managers.

Rudiantara said that in the current situation, where some Asian currencies were hit by speculators, telecommunications became an "anomaly".

Telecommunications was a prospective business as people always need to communicate and use telecommunications devices, he said about the market strength of cellular phones.

"Meanwhile, the cellular phone market has above average affordability," he said.

A director of another GSM PT Telkomsel, Ardhin Ichwan, said there could be a temporarily low impact on cellular operators.

"Some people will probably cancel or delay their plan to buy new phones. Some of them may include new subscribers," he said.

Some people would question the increase in cellular phone prices because the rise was unusual, he said, adding that the trend of cellular phones was actually going downward.

"The fall is not because of currency exchange rates but it's a global trend," he said.

Cellular phone prices in the greater Jakarta area have increased in the last two days following the rupiah's sharp fall.

A dealer in Pluit, North Jakarta, said some popular brands like Nokia 3810 now cost Rp 1.05 million up from Rp 1 million, Ericsson 788 up to Rp 1.95 million from Rp 1.85 million and Motorola Startac up to Rp 2.15 million from Rp 1.95 million.

The dealer said prices of some brands such as Phillips Genie were unchanged at Rp 2.02 million and Siemens S4 at Rp 900,000.

"Demand is just the same. There are just some buyers asking about the new prices, but they understand the hike," the dealer said. (icn)