T

he growing appetite for smartphones and tablet computers will further define market trends in 2012, spelling new challenges for computer manufacturers and telecommunication operators.

Rudi Rusdiah, caretaker at the Computer Entrepreneurs Association (Apkomindo), said that changes in market taste had become evident, as indicated by lower than expected sales of computers last year.

Sales of computers — excluding tablets — totaled only 4.5 million units in 2011, 10 percent below the initial estimate of about 5 million, according data issued by Apkomindo.

He added that technological convergence contributed to the sales slump of computers, as consumers preferred using Internet-capable mobile phones and tablets to access the Internet.

Apkomindo data shows that ownership of desktop computers in 2011 was already at a low, with only 31 percent of households owning the device. Meanwhile, 78 percent of households own Internet capable mobile phones, but only two percent have tablet computers. Rudi noted, however, that tablet sales would rise significantly because they were the latest gadgets.

A multitude of vendors introduced their tablets into the Indonesian market last year, from Apple with their iPad 2 to Asus with their Eee Pad Transformer.

“Tablets are also set to erode the market share of netbooks,” Rusdi said.

In addition to technological convergence, analysts also pointed out the falling prices of Internet-ready mobile phones and tablets as key factors in spurring the sales of these devices.

With 210 million mobile phones in use, Indonesia is already a mobile phone-centric nation. Vendors now offer a wide range of prices for their handsets, with Android smartphones costing as low as Rp 1 million (US$109).

Rusdi added that the hype generated by flashy advertisements have enticed people to purchase new products. “Thus, these gadgets are highly sought after because people decide based on emotions and not on rational thought,” he said.

Hardyana Syintawati, vice president for marketing and communications at Ericsson Indonesia, pointed out that people would increasingly possess multiple Internet-capable devices, such as a combination of smartphones, tablets and dongles.

The increasing affordability of tablets, she added, would entice customers to choose these devices over laptops.

“If all they want to do is use the Internet, then a tablet will suffice,” she said. Android-based tablet prices start from around Rp 2 million, with better specifications costing around Rp 7 million.

The trend for multiple handsets, Hardyana pointer out, was evident because more than 240 million SIM cards were in use, a number surpassing the total population of the country.

“This figure will rise because there will be more devices that connect with SIM cards,” she said, adding that the number could surpass 300 million this year.

There were roughly 60 million broadband subscribers in 2011, with numbers expected to rise to 150 million by the end of 2012, she said.

Although the number of SIM cards in circulation would rise, operators would have lower average revenue per user as consumers would turn to online communication tools, such as Internet messengers, over short text messages (SMS) and phone calls, analysts pointed out.

According to Mastel chairman Setyanto P. Santosa, operating revenue this year would rise by a smaller margin compared to last year. In 2011, revenues were estimated to increase by 20 percent. This year, however, the increase is forecast at between seven and nine percent.

“The revenues would fall because people would send less voice data and SMS,” he said, adding that society was shifting from a voice-based community to a data-based community.

The National Development Planning Agency (Bappenas) predicts that there would be 17 million broadband subscribers by 2014, more than twice the number in 2010.

He added that the rise in ownership of smart devices was also a signal for content providers, especially application developers, to improve the quality of their product.

All platforms now have application stores from which users can download applications, or apps. Apple has their App Store while Android has their Android Market.

“The content industry, including e-commerce, is starting to grow,” he said. “But they are at a very early stage.”

He added that local application, or apps, developers still needed strong guidance in crafting apps for the international market.

“They can join up with incubators and once they have a strong business base, they could look for venture capitalists,” he said.