Global crisis pushes gadget prices down

CEBU, Philippines - The perceived weakening of consumers’ purchasing power brought about by the global financial crunch prompted technology vendors to make gadgets more affordable to stimulate buyers’ interest.

Philippine Retailers Association (PRA-Cebu) president Melanie C. Ng said that the market should be affordable technology products this year, such as Personal Computer (PC) package, laptop, among others, as vendors and technology brands are now working on attractive packages that will attract consumers’ attention.

Ng, who also owns a chain of technology retail store NGenius, a subsidiary of Ng Khai Development Corporation, said that consumers are now becoming very choosy and stringent, thus technology vendors are also adjusting their prices to fit to the affordability level of the market.

“We are working with vendors/brands to come up with more affordable products—to fit the stringent pockets of consumers now. Hence, the success of the netbooks now offered very affordable that are packed with features,” Ng said.

Fortunately, she said technology brands, such as HP, among others are responsive to this call to adjust their pricing levels. Thus, PC prices now are dropping significantly.

 She said the entry of affordable netbooks that are pegged even below P20 thousand has paved the way for wider consumer base to own a mini-laptop.

Now, even students can now have their own computer (netbook).

Because of the declining prices of gadgets, Ng said retailers still enjoy encouraging sales despite the economic difficulties. “Even the price of LCD has dropped. So far, this has cushioned the severe impact of the crisis.”

Most technology vendors are also offering very attractive credit packages for consumers, through credit cards. This includes zero interest for consumers to buy computers, laptops and other gadgets via credit card.

 In these times of difficulties, more people are very careful in spending and planning their expenses. The zero interest package of some technology brands, offered through accredited technology retailers has provided an easier way for people to spend wisely, as well as plan their expenses well.

 Based on IDC report, the PC penetration in the Philippines is only four percent. About 20 percent to 30 percent of which are desktop, the rest are shared by server and notebooks.

In a separate earlier interview with Intel Technology Philippines country manager Ricky Banaag said despite the "belt tightening" measures adopted by consumers, because of the financial crunch, more and more Filipinos are expected to buy PCs, as this basic gadget has become one of the must-buy tools nowadays.

Banaag added that technology spending is still expected to grow this year, while PC rate in the Philippines is still relatively low, compared to other Asian countries.