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Jakarta Post

Finding the right mix in the market

No one can deny the importance of computers in daily life, especially for urbanites

Nina Tan (The Jakarta Post)
Jakarta
Sun, August 9, 2009 Published on Aug. 9, 2009 Published on 2009-08-09T11:34:43+07:00

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N

o one can deny the importance of computers in daily life, especially for urbanites.

Computers are not just for businesspeople, but also for students as young as kindergarteners and housewives. Therefore, despite the global economic downturn in which the PC industry faced negative growth toward the end of 2008, the Indonesian PC industry had already recovered by the first quarter of 2009.

Based on GfK data, Indonesian computer retail sales dropped more than 5 percent in the fourth quarter of 2008 from the previous quarter. In 2009, it achieved positive growth, especially for notebooks, which grew 9 percent in the first quarter of 2009.

People still need computers, and no matter how long they postpone buying one, sooner or later they will. Entering the second quarter of 2009, the computer market is showing further improvement following the rupiah's stronger position against the US dollar.

The significant increment was mainly driven by affordable notebooks priced at less than US$700. A very good price, especially considering that just two years ago, the average notebook retailed for more than $1,000.

In the second quarter of 2009, affordable notebooks accounted for more than half of the total notebooks sold in the retail market, an increase of more than 10 percent compared to the first quarter.

One of the main triggers of the increasing trend is netbooks (notebooks with a screen measuring less than 10.2 inches), accounting for one-third of notebook sales under $700. Even though its growth was not as high as in 2008, netbook sales have improved in 2009, which proves its resilience and strength.

Global vendors, which dominate sales for affordable notebooks, have kept up the pressure by providing new models every month by upgrading components to keep the product up-to-date with the latest technology. This is definitely the "it" segment for 2009, as this segment will continuously grow, meeting the market demand for value-for-money PCs.

However, affordable notebooks does not always refer to netbooks. The netbook's contribution to the notebook segment under $700 is only one-third, which leaves the remaining two-thirds of the pie to regular notebooks, mainly 14" in screen size. Based on GfK data, these 14 inchers account for more than 55 percent of notebook sales in the under $700 segment.

It might indicate that we as PC users still have needs that netbooks cannot accommodate. This is what the manufacturers try to answer, bringing new offerings in 2009.

This year, notebooks appear to be slimmer, thinner and lighter than ever before. The new notebook concept accommodates our need to be mobile, allows us to work longer without re-charging, is lighter in weight, is comfortable to work with and comes in affordable prices.

Top multinational brands started to launch this kind of notebook in the second quarter of 2009. Acer Timeline and HP DV2 are two examples of this type of notebook that has taken center stage at major IT exhibitions.

Following the past trend of how players behave in this industry, it will be no surprise to see local players and second-line brands putting their own products on display shelves and pulling the average price down soon enough.

Adding to the equation, affordable is no longer strictly associated with a plain look in the PC industry. We can easily sit back and enjoy the privilege to choose a wide variety of affordable PCs. Consumers can choose from over 20 netbook brands and more than 25 notebook brands, from glossy surface to leather cover, standard black to rainbow color casing, small and cute to slim and sleek PC.

Looking at how things go, nowadays we don't necessarily need to pick price, feature or design as the most important criteria over the others when making a notebook purchase. Simply take all three, put it in basket, shake it a bit and you will surely be able to find the right mix in the market.

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