Yerkanat ABENI
ALMATY, May 31
(THE GLOBE)
Analysing the situation in the computer market in Almaty, it s possible to find out, that it is more profitable to import computer spare parts and to assemble computers in the country, than to import the ready products.
At present almost all the companies dealing with computers, sell equipment assembled in Kazakhstan. The structure of the computer market in Almaty is a typical one. There are a lot of companies having sales volumes of up to 50 computers/month in Almaty. However, the main volume of computers is sold by the middle-size companies with the monthly sales of up to 100 to 200 computers. (These companies are considered to be small and middle-size assemblers of computers � SMA). According to evaluations of these companies, the market share of all the SMA (sales volume of computers made by these companies) is 40 to 50%, while a share of the individual producers is not more than 15%. Hence, the share of big companies-producers is 35 to 40%.
Talking to the marketing specialist of the Limited Company �Computer�, I found out that computer sales are mainly influenced by seasonal factors. According to Ruslan Sarinov, the largest sales are in July to August. It is connected with the fact that big companies plan to modernise their computer pool (all the computers belonging to the company) during vacation season, i.e. when equipment is least used. The next big sales period is the few last months of the year, when budget organisations try to spend money given by the budget by the end of the year.
Every year a small sales peak is observed from March to April, when companies having submitted the annual balance, calculate their income and plan expenses for the next year. Previously during this period a lot of computers had been purchased, but this year our government took measures to �improve� the economy and this sales peak was not observed.
In comparison with the last year, the sales volume from March to April was approximately 50% lower.
Problems of middle-size and small assemblers of computers
One of the problems is the falling of purchasing capacity of the population. The crisis has touched all the sectors of the computer market, including producers of computers. It seems that an abrupt worsening of the economic situation should have stricken first of all the SMA, as their financial and manufacturing resources are less, than the resources of the market leaders who have more possibilities to withstand the crisis.
However, if we consider the situation in details, the situation is obviously different.
Assemblers and the crisis
According to some heads of SMA, the crisis has greatly decreased the computer business. �I don�t believe those heads who state that after April 5 they did not feel any sufficient changes in the work of their companies. It could not be the truth, because the entire business was stagnating,� one specialist told THE GLOBE.
As SMP not only have to produce computers, but establish channels for their purchases of spare parts, and to search for a sales market of computers, these companies are original �indicators of the market condition.� By the SMA�s condition it is possible to judge what problems the entire market faces.
�The volume of money available in the country fell by a factor of three, and as a result the computer market decreased 2.5 to 3 times.� �The fallen demand for PC is rebounding a little, but these changes are not so big as we want,� one of the individual PC producers states.
The unstable tenge�s rate causes a lot of problems as well. It is obvious that �during fluctuating tenge�s rate the demand fells � the clients postpone purchasing of computers. Besides, in case of the floating rate, sometimes the corporate clients have to pay the balance, which is unpleasant for both them and the sellers.
�Under the conditions of an abrupt reduction of sales, big PC producers had to return significant amounts under products credits to their foreign suppliers. Middle-size producers, as a rule, work using their own money. This fact allowed them to overcome the peak of the crisis more easily,� Ruslan Sarinov stated.
To withstand the crisis, SMP and other computer companies have to reorganise their internal structure. The companies tried to minimise their overhead expenses and to raise the efficacy of their work.
All the SMA attentively follow the trends of demand for their products, changes of external conditions and wish to keep the sales volume at the same level.
�If in the beginning of this year big clients mainly paid attention to the quality of computers, now they choose qualitative, but obligatorily cheap equipment,� Mr. Sarinov announces.
But the price policy has practically not changed, as during the crisis only small companies reduced their prices.
Pickpockets
Another important problem for PC producers is that there is no state control. Many companies produce computers, despite the fact that do not have the corresponding permission.
In general all small producers operate without licences. These producers are called �pickpockets�, as they import spare parts in �their pockets�, and computers produced by them are called �produced on the knees�.
The State does not defend companies that produce qualitative computers from domestic industry. There are some corresponding laws, but the latter are ignored, as are most of Kazakhstan laws.
Other problems
Of course, it is desirable to reconsider the tax policy of Kazakhstan. If we just imagine there are no taxes at all, it would result in the reduction of the prices of computers by 20% - a serious discount.
Competitiveness in our business is not obvious. It is more profitable for us to co-operate with other companies, as it is very difficult to import all the required spare parts in one lot.
Prognosis
Prices of computer are falling all over the world. Only in the last year, the prices of computers decreased by approximately 10%. For example, a year ago �Celeron 226� computer cost US$ 715, at present the multimedia computer based on �Celeron� 330A processor cost US$ 664. This occurred despite improved technical characteristics.
There is no serious production of computer spare parts in Kazakhstan. The most serious one is painting a client�s logotype on the mouse mat.
Russia produces spare parts, but they are of very low quality. All the spare parts used in computers produced in Kazakhstan are mainly imported from Indochina. It is so-called �yellow� assembling. It is not a secret that all countries buy spare parts in this region.
Some of the SMAs become distributors developing their supply channels. In addition, these channels allow for the sale of excess spare parts to small PC producers.
Nobody doubts that in near future the computer market will be redistributed. Having lost their corporate clients, the SMA will have to compete mainly in retail sales.
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