Tue, 11 Oct 2005

War in prices, design and technological features

Burhanuddin Abe, Contributor, Jakarta

With the rapid development of IT, you can no longer use time or location as a pretext for not getting the job done.

These days, with the help of a notebook, you can do your job almost anytime you want to and wherever you may find yourself.

The notebook market has been extremely lucrative. Hewlett- Packard (HP), previously known as one of the world's major printer manufacturers, has been intensively marketing its notebooks.

HP's latest notebook series empowered by Intel Centrino Mobile Technology provides you with sophisticated features and all the facilities you need when you use them.

HP's efforts in the notebook market have been rewarding. The rating issued by Gartner Inc, a technological analyst company, in its 2005 Vendor Rating Report, shows that, compared with last year, HP's ranking has gone up from the level of "promising" to "positive".

This report, which Gartner publishes annually, evaluates IT vendors on the basis of specific criteria related to corporate capabilities, market offerings, services and customer support.

The demand for notebook computers has risen because professionals and businesspeople have an increasing need for this particular type of computer to allow them to stay mobile.

The statistics issued by the International Data Corp. (IDC) shows that in 2005 the total number of notebook computers to be sold in Indonesia will reach 84,205 and that this number will continue to rise to 99,539 in 2006.

A notebook is a primary choice to support someone's lifestyle and improve his prestige. A notebook can satisfy the needs of the consumer thanks to its slimness, lightness, sophistication, style and inherent prestige.

While the price of a notebook used to be expensive, in the past three years prices have been coming down thanks to the greater sophistication of the technology employed. A notebook that used to cost US$2,000 may be available for about US$1,200 now.

Besides, several manufacturers provide various financing options. Acer, for example, has teamed up with Adira Finance, a financial institution, to develop its Smart Offer financing scheme.

With only Rp 50,000, a buyer can take home the notebook of his choice and take out an installment plan with no interest.

The downtrend in prices and the various facilities on offer have enabled notebooks to widen their market penetration. Notebooks are now sold not only in major cities in Indonesia but also in smaller towns across the country. Figures compiled by the Indonesian Association of Computer Businesses (Apkomindo) shows that most notebook purchases are made by companies (60 percent), with individuals making up the rest of the buyers.

Those involved in intensifying their promotional campaigns are not only HP and Acer but also some other notebook makers, such as Toshiba, Fujitsu, Compaq, IBM, Relion, Zyrex, LG and NEC. Aside from international brands, you can also find local makes, such as Zyrex and Relion.

According to IDC research, the biggest selling brands are (in declining order) Toshiba, HP, Acer, IBM, Dell, Fujitsu, Asus, Relion, Zyrex, Apple and Wearness.

Meanwhile, Susanto Widjaya, a commissioner of PT Aneka Infokom Tekindo, the sole agent for Toshiba notebook computers in Indonesia since 1996, said Toshiba was the leader in the notebook market in Indonesia because its technology was reliable and its products durable.

Toshiba's market share stood at 23.8 percent in 2004 and in 2005 it is expected to reach 35 percent.

To ensure that its notebooks continue to be popular among buyers, Toshiba has developed various sales strategies.

Aside from constantly updating its technology, Toshiba has also continued to develop its aftersales service to satisfy the needs of buyers and convince them that their choice of a Toshiba notebook was the right one. Besides placing advertisements in the print media, Toshiba also often takes part in exhibitions.

In one year, it take parts in at least three exhibitions -- the Indonesian Computer Festival, Indocomtech and Mega Bazaar. Toshiba allocates 10 percent of its sales proceeds for promotional activities. In addition, Toshiba is also sponsoring the 2006 Soccer World Cup in Germany.

It is undeniable that Toshiba is a brand that Indonesian buyers easily recognize. This is because it was introduced to the consumers in this country earlier than other makes.

Of course, Toshiba has its rivals. Brand-wise, its closest rivals are HP and Acer, while in terms of price, it is facing a serious threat from the influx of locally made and Taiwanese-made notebook computers from outfits such as Relion, Zyrex and Ion.

Acer has 10 different models of notebooks

Acer is certainly not to be underestimated. This Taiwanese manufacturer is known to not only be innovative but also daring in terms of pricing. This year, Acer launched its Aspire 3000 series, notebook computers provided with AMD Sempron mobile processor technology, which, reportedly, is now rivaling Intel Centrino.

This series was designed to act as desktop PC replacements. Employing a special pricing strategy, Acer is eyeing students as potential buyers.

To date, Acer has 10 types of notebook on the market. Two of these use AMD (Advanced Micro Device) processors while the other eight use Intel.

David Lee, marketing manager of AMD for the Asia Pacific regions, said that one of the sales strategies employed by his company was to make AMD part of a branded computer.

"AMD has always been part of branded products like Acer, Apple and Microsoft Xbox," he said. At present, Acer has sold 40,000 computers in the Indonesian market and hopes to increase the number to 50,000 units by the end of the year.

Japan's Fujitsu does not want to be lagging behind, of course. The trend for mobile computing and wireless have been translated into reality with the launch of its two latest products, LifeBook T4010, which is a Tablet PC convertible, and LifeBook S7011, which uses a biometric fingerprint scanner.

These two products have their own advantages over other makes. The T4010 is 1.95kg in weight while the S7011, with a slim design, weighs 2kg, both ideal for highly mobile users.

These two products also use the same wireless connectivity, namely 802.11b/g wireless LAN and are provided with the Ethernet Gigabit room, which is capable of transferring data at a speed of 1 GB per second. The T4010 is also provided with Bluetooth so that this TabletPC-based computer can be connected with other peripherals.

Notebook technology is indeed no longer unique today. This means that every vendor can rapidly keep up with notebook technology. There is only a hair-thin difference between a trendsetter and its followers. Let's say, for example, that Fujitsu develops a new technology today. The next day Compaq will do likewise. Even local makers, say, Relion, does not with to be seen to be lagging behind established global brands. Aside from notebooks, Relion, a brand apparently derived from the words "rely on", has also launched desktop computers and servers.

As a new make, Relion, produced by the Berca Group, is quite reliable. Relion notebooks of the Enduro series, for example, can offer reliable structures of technological designs so that they can be used for various multimedia purposes.

Enduro HM can even be preferred over other makes with similar specifications that are now available in the market.

Using a Pentium 4/2.2 GHz Mobile processor, Enduro HM, which can allow a very soft DVD showing, is a pleasant multimedia entertainment gadget using a sound system that can produce a very clear sound.

Apparently, notebooks have become the choice today and will continue to be so for at least another couple of years because of several factors, such as price consideration and the fact that a notebook is now the same in capability as a desktop computer. As buyers choose to buy notebooks, there is now stiff competition to win market share. While the war in terms of notebook prices, designs and technological features are interesting and alluring, it is at the same time confusing to buyers.