"My maid up and quit yesterday and now the house in is chaos! I don't mind cleaning the house, but washing and ironing every one's clothes is too much of a burden."
Are you familiar with this? If so, then you might be among the 88 percent of households in Indonesia that struggle with household chores, especially when it comes to washing by hand. These households primarily depend on maids to do the laundry and have not considered a washing machine to ease the burden.
Many people traditionally believe that a washing machine could not possibly clean clothes properly but just tangles them up and inflates a household's electricity bill. When compared to a maid, who can do lots of other chores, people think that overall a washing machine costs more. However, washing machine manufactures have taken measures to change these perceptions
GfK, which has tracked retail sales of home appliances since the early 1990s, recorded that up to 2000, an average of 320,000 washing machines were sold per year. By 2008, about one million washing machines were being sold per year, which represents a more than 200 percent sales growth, at least 16 percent increase per year.
Refrigerator sales grew around 155 percent in the same period. Indonesia's washing machine penetration rate is 13 to 15 percent, meaning less than half of every household with a refrigerator has a washing machine.
This indicates that perceptions about washing machines are changing. Manufacturers are introducing washing machines with numerous features to help consumers get maximum benefit from spending between Rp 1 million (about US$ 83) and Rp 7 million depending on the model type: twin tub (semi-automatic), single tub (fully automatic) or drum front loader.
Currently, twin tubs account for up to 65 percent of the market, single tubs 27 percent and front loaders 5 percent. The popularity of the twin tub can be accounted for by its price. For around Rp 1.2 million, a person can buy a twin tub and spend more time removing clothes from the washer to the spinner. A smaller capacity machine or Chinese brand cost even less.
However, for about Rp 1.9 million more, a fully automatic washing machine can be purchased and the hassle of moving clothes from the washing tub to the spinner can be avoided. A fully automatic machine also takes up less space.
The price of a front loader is between Rp 3.2 million and Rp 7 million, depending on the brand. This type of machine consumes less water and results in cleaner clothes and less tangling. Front loaders are popular in developed countries with four seasons because it spins clothes drier or is paired with a dryer.
In the Asia Pacific, the fully automatic single tub is more common.
In developing countries with low penetration rates and a relatively high percentage of the population living in rural areas, where water may not be connected to households or water pressure may be low, the twin tub is more common. Changes in lifestyle, urban spread and changing purchasing patterns tend to lead to growth in these markets, with consumers upgrading to fully automatic machines.
The front loader segment recorded the strongest growth of all washing machine types in 2008. Even though Indonesia's front loader market is small at 5 percent of the washing machine market, it outstrips Malaysia's 3 percent, Thailand's 4 percent and the Philippines' almost zero.
Exceptions in the region include Hong Kong, Korea and Taiwan:
Hong Kongers prefer drum top loaders due to limited living space;
Taiwanese prefer high capacity (over 14kg) single tub machines due to lifestyle preferences;
Koreans buy the highest proportion of front load washer/dryers (front loaders with integrated dryer). Very high-end washers cost more than US$1,000;
Australia has the highest proportion of front loaders in the region. Note that the Australian government has mandatory water labels in place due to drought conditions. The Australian government also provides consumers rebates if they chose water saving washing machines with a high water star rating.
Judging from the market in these countries, we see the future choices for Indonesian customers. Clearly, what customers want is a washing machine that uses less water and electricity with a compact design, is easy to operate and with functions that save time, offer safety and satisfying results.
So how about that maid? It's true that we often complain about the quality of their work, of not doing the work properly or of spending too much time on their mobile phone, but sometimes we forget they not only help us but also do everything for us.
So, how about helping them work more efficiently by getting a washing machine for your house?
Good luck with your choice and choose wisely!
Friday, October 30, 2009
Thursday, October 29, 2009
The netbook is in fashion
Do you know where to access the Internet for free? Nowadays, it is not hard to find somewhere with free Wi-Fi connection. Many colleges, shopping malls, cafes and even sports clubs have free Wi-Fi as part of their facilities.
Sometimes you may notice someone sitting in a cafe when you first arrive at a shopping center, and later see them still sitting there after you have finished shopping, dining or watching a movie.
What keeps them riveted there? It is not simply the "free" things that make them stay, but also because they have the right equipment.
You may think twice about taking a 2.5-kilogram laptop to a cafe or mall, especially if you are planning to shop and later watch a movie. But what if your laptop weighed less than one kilo and you did not have to take along another bag? You would only need to put it in your bag or carry it in your hand. Welcome to the era of the netbook.
Now it has become part of people's lifestyle, and users are not just children. And its price is not much different from a notebook.
Its weight is one of its main selling points that makes everyone covet one.
Based on GfK data, 60 percent of netbooks sold in 2008 had 8.9-inch screens, which may take getting used to for some people.
Its size also means the keyboard is significantly smaller than a regular notebook. Some manufactures make the keyboard larger than regular netbook size so that you can type more comfortably.
But it seems that a larger keyboard is not enough to increase people's comfort level, and so a 10-inch screen is starting to replace the 8.9" screen. Of course, the improvement is not only to the screen size and keyboard.
A netbook with a 10" screen most likely uses the netbook-dedicated processor Intel Atom. The storage has also improved a lot since the first generation. Now there is no reason to worry about saving any file on your netbook. More than 10 brands offer netbooks with a storage capacity of over than 100Gb.
As a result, a netbook is more than enough to browse your favorite site, blog and chat. If you only need to work on basic office tasks, such as make a presentation or write an essay, then a netbook might be enough to meet your needs with its lighter weight.
However, some of you might think that a netbook is cheaper than a regular notebook, since it was initially intended to provide children with affordable computers.
Well, perhaps you had better think again if the main reason you are planning to buy netbook is because of its price.
Prices for netbooks and notebooks are similar, with the former selling for Rp 2.5 million to Rp 8 million, while the latter starts at Rp 4 million.
Let's take a look at the features of netbooks and notebooks in the same price range.
The average price for a netbook is around Rp 5.6 million, for which you could get one with a 10" inch screen with 1G RAM, and 160 Gb storage. For slightly less, or Rp 5.2 million, you could get a 12" notebook with dual core processor with a higher speed than a netbook, 1G RAM, and 160 Gb. So it ends up that netbook is not a cheap product, but it is rather another type of computer that meets other needs.
If you want a mobile computer, then you need to decide what is more important to you. Is it the size? Or the features? And what will you use it for? A netbook is sufficient for basic tasks, plus it is light and trendy.
Of course, replacing a bulkier notebook means a few inconveniences, such as compromising due to its limited size and losing some of ergonomic comfort offered by a larger notebook. Can't decide? Then have both, one for work and one for fun.
The netbook was originally designed to help children around the world gain access to the Internet, learn more and provide them with affordable computers.
Sometimes you may notice someone sitting in a cafe when you first arrive at a shopping center, and later see them still sitting there after you have finished shopping, dining or watching a movie.
What keeps them riveted there? It is not simply the "free" things that make them stay, but also because they have the right equipment.
You may think twice about taking a 2.5-kilogram laptop to a cafe or mall, especially if you are planning to shop and later watch a movie. But what if your laptop weighed less than one kilo and you did not have to take along another bag? You would only need to put it in your bag or carry it in your hand. Welcome to the era of the netbook.
Now it has become part of people's lifestyle, and users are not just children. And its price is not much different from a notebook.
Its weight is one of its main selling points that makes everyone covet one.
Based on GfK data, 60 percent of netbooks sold in 2008 had 8.9-inch screens, which may take getting used to for some people.
Its size also means the keyboard is significantly smaller than a regular notebook. Some manufactures make the keyboard larger than regular netbook size so that you can type more comfortably.
But it seems that a larger keyboard is not enough to increase people's comfort level, and so a 10-inch screen is starting to replace the 8.9" screen. Of course, the improvement is not only to the screen size and keyboard.
A netbook with a 10" screen most likely uses the netbook-dedicated processor Intel Atom. The storage has also improved a lot since the first generation. Now there is no reason to worry about saving any file on your netbook. More than 10 brands offer netbooks with a storage capacity of over than 100Gb.
As a result, a netbook is more than enough to browse your favorite site, blog and chat. If you only need to work on basic office tasks, such as make a presentation or write an essay, then a netbook might be enough to meet your needs with its lighter weight.
However, some of you might think that a netbook is cheaper than a regular notebook, since it was initially intended to provide children with affordable computers.
Well, perhaps you had better think again if the main reason you are planning to buy netbook is because of its price.
Prices for netbooks and notebooks are similar, with the former selling for Rp 2.5 million to Rp 8 million, while the latter starts at Rp 4 million.
Let's take a look at the features of netbooks and notebooks in the same price range.
The average price for a netbook is around Rp 5.6 million, for which you could get one with a 10" inch screen with 1G RAM, and 160 Gb storage. For slightly less, or Rp 5.2 million, you could get a 12" notebook with dual core processor with a higher speed than a netbook, 1G RAM, and 160 Gb. So it ends up that netbook is not a cheap product, but it is rather another type of computer that meets other needs.
If you want a mobile computer, then you need to decide what is more important to you. Is it the size? Or the features? And what will you use it for? A netbook is sufficient for basic tasks, plus it is light and trendy.
Of course, replacing a bulkier notebook means a few inconveniences, such as compromising due to its limited size and losing some of ergonomic comfort offered by a larger notebook. Can't decide? Then have both, one for work and one for fun.
The netbook was originally designed to help children around the world gain access to the Internet, learn more and provide them with affordable computers.
Wednesday, October 28, 2009
The slimly and simply attractive LCD TV
John Naisbitt, the author of Global Paradox, mentioned in his book "The paradox is the source of a thinker's passion and inspiration".
Most people are obsessed with anything bigger and fancier, but design wise, the latest trend shows the paradox. It is not bigger and fancier but slimmer and simpler.
As we can see nowadays, housing has minimalist design; furniture no longer has complicated patterns. This is also the case with audio-visual products.
Danish manufacturer Bang and Olufsen has pioneered simple design in its audio products, and for the last few years, the LCD TV has fascinated us with its slim and simple design yet powerful picture quality.
If you are considering replacing your 29-inch CRT (conventional TV) with something bigger (screen size wise) yet slim and simple that offers better picture quality, don't overlook the "crispy yet low calorie" offer of the 32-inch LCD.
Yes, it is "crispy", "visually crispy". We are currently spoiled by the many choices of LCDs on the market. Each brand tries to visually spoil us with its sleek lineup of models. Recent LCD models are equipped with 100Hz frequency, Full HD (High Definition) and higher contrast ratio, even up to 70,000:1. Visually, these features offer much better picture quality than CRTs, which mostly have only 50Hz, no HD and a much lower contrast ratio.
Design wise, the LCD is "slimly" attractive. The 32-inch LCD or bigger would fit perfectly in your living room. Having an LCD in the living room is not only for home entertainment purposes, but is also a status symbol, reflecting modernity and prestige.
The latest lineup of LCD models not only offers black and silver colors, but also blue, green, orange, red, white and even pink. One can easily choose a color to suit the color of a room.
And yes, they are "low calorie" in that they are affordable. The average price of a 32-inch LCD in 2006 was Rp 11.5 million, but has dropped to just Rp. 5.7 million. The price of some models is even less than Rp 5 million, meaning the price has dropped by 50 percent in just two years. LCD prices in Indonesia are competitive to those in other Southeast Asian countries. This considerable drop in price is due to severe competition between brands. Each brand is trying to boost its LCD sales by offering competitive prices. Moreover, the LCD is still in the growth stage in the product life cycle, so that the market will continue to grow. It is estimated that the market size of LCD in 2009 will be 400,000 to 500,000 units.
The 32-inch LCD has seen the biggest drop in price due to it being the most common. Almost 60 percent of the LCDs sold are 32 inch.
The second biggest segment is the 40 and 42 inch. Some brands prefer to manufacture the 40 inch, but others prefer the 42 inch. This segment has also seen considerable price drops of around 43 percent, from Rp 20 million in 2006 to Rp 11.5 million now.
This considerable decrease in price obviously benefits customers, especially the "late bloomers".
To get the most interesting deal, just buy a Friday morning newspaper and read the LCD prices offered at outlets. Then go shopping on the weekend, when prices are appealing. Shopping at modern outlets is also convenient, because not only are they air-conditioned and stocked with plenty of model options, they also usually offer financing options.
But if you love bargaining, you could go to a traditional outlet after researching prices.
Globally, governments have requested TV stations to shift from analog to digital transmission, and the Indonesian government is no exception. This will benefit viewers if they have an LCD TV with HD (High Definition) as they will enjoy better picture quality. So, have you planned your weekend to search for your dream LCD TV?
Most people are obsessed with anything bigger and fancier, but design wise, the latest trend shows the paradox. It is not bigger and fancier but slimmer and simpler.
As we can see nowadays, housing has minimalist design; furniture no longer has complicated patterns. This is also the case with audio-visual products.
Danish manufacturer Bang and Olufsen has pioneered simple design in its audio products, and for the last few years, the LCD TV has fascinated us with its slim and simple design yet powerful picture quality.
If you are considering replacing your 29-inch CRT (conventional TV) with something bigger (screen size wise) yet slim and simple that offers better picture quality, don't overlook the "crispy yet low calorie" offer of the 32-inch LCD.
Yes, it is "crispy", "visually crispy". We are currently spoiled by the many choices of LCDs on the market. Each brand tries to visually spoil us with its sleek lineup of models. Recent LCD models are equipped with 100Hz frequency, Full HD (High Definition) and higher contrast ratio, even up to 70,000:1. Visually, these features offer much better picture quality than CRTs, which mostly have only 50Hz, no HD and a much lower contrast ratio.
Design wise, the LCD is "slimly" attractive. The 32-inch LCD or bigger would fit perfectly in your living room. Having an LCD in the living room is not only for home entertainment purposes, but is also a status symbol, reflecting modernity and prestige.
The latest lineup of LCD models not only offers black and silver colors, but also blue, green, orange, red, white and even pink. One can easily choose a color to suit the color of a room.
And yes, they are "low calorie" in that they are affordable. The average price of a 32-inch LCD in 2006 was Rp 11.5 million, but has dropped to just Rp. 5.7 million. The price of some models is even less than Rp 5 million, meaning the price has dropped by 50 percent in just two years. LCD prices in Indonesia are competitive to those in other Southeast Asian countries. This considerable drop in price is due to severe competition between brands. Each brand is trying to boost its LCD sales by offering competitive prices. Moreover, the LCD is still in the growth stage in the product life cycle, so that the market will continue to grow. It is estimated that the market size of LCD in 2009 will be 400,000 to 500,000 units.
The 32-inch LCD has seen the biggest drop in price due to it being the most common. Almost 60 percent of the LCDs sold are 32 inch.
The second biggest segment is the 40 and 42 inch. Some brands prefer to manufacture the 40 inch, but others prefer the 42 inch. This segment has also seen considerable price drops of around 43 percent, from Rp 20 million in 2006 to Rp 11.5 million now.
This considerable decrease in price obviously benefits customers, especially the "late bloomers".
To get the most interesting deal, just buy a Friday morning newspaper and read the LCD prices offered at outlets. Then go shopping on the weekend, when prices are appealing. Shopping at modern outlets is also convenient, because not only are they air-conditioned and stocked with plenty of model options, they also usually offer financing options.
But if you love bargaining, you could go to a traditional outlet after researching prices.
Globally, governments have requested TV stations to shift from analog to digital transmission, and the Indonesian government is no exception. This will benefit viewers if they have an LCD TV with HD (High Definition) as they will enjoy better picture quality. So, have you planned your weekend to search for your dream LCD TV?
Tuesday, October 27, 2009
Choosing the right game console
In big cities like Jakarta where open spaces are shrinking and parents tend to put more emphasis on extracurricular study activities for their children, favorite pastimes of our childhood like playing hide and seek, climbing neighbor's trees, flying kites and playing soccer with friends are rarely seen, especially in housing complexes.
Nowadays, changing lifestyles and technological breakthroughs in the entertainment industry are gradually shifting our children's interests from outdoor to indoor games.
The current technology of video game consoles (VGC) is designed and developed in such a way that it attracts not only children but also adults. With the extended facilities, they can be connected to personal computers, televisions and other devices.
With both audio and video compatibility, it enables gamers to enjoy unlimited entertainment.
With the availability of advanced technology for batteries, portable game consoles have become more convenient and reliable as options for entertainment gadgets. GfK Indonesia estimates that the 2008 VGC market in Indonesia was approximately one million units.
In areas that GfK covers (Jakarta and Surabaya) portable models accounted for 61 percent of total consoles sold, while desktop (home type) accounted for the remaining 39 percent (excluding VGCs with non-replaceable software)
Leading brands like Sony, Nintendo and Microsoft cumulatively accounted for more than 95 percent of total VGC sales throughout 2008. Among these three players, Sony clearly dominated the market with a more than 60 percent market share, followed by Nintendo and Microsoft with 32 percent and 2 percent respectively.
Besides variety of models, the availability of almost unlimited game software gives Sony a definite advantage in the competition.
Although Nintendo is not considered the biggest player in Indonesia, Nintendo's evolutionary way of playing games and its low price has certainly created a unique position for Nintendo.
Focusing on the portable segment, among the choices of game consoles available, recently the Sony PSP Slimlite became the best selling game console model in GfK areas. This model is a slimmer version of the previous PSP model with a price range of Rp 2.8 million to Rp 3 million in February 2009. In second position, the DS Lite from Nintendo has a more competitive price of Rp 1.5 million to Rp 1.6 million.
Generally, most consumer decisions on which console to buy is influenced by the available game selections. PSP Slimlite offers something more, which is better graphic quality in the portable segment.
Nintendo DS, on the other hand, offers a different gaming experience with its touch screen and unique game selections. Combined, Sony and Nintendo accounted for more than 90 percent of portable game console sales.
With all of the available video game console options on the market, it can be quite confusing when it comes time to make a decision on which to buy.
However, don't be too bothered about it. Just ask yourself a few simple questions, as outlined below, and you can easily decide which system is right for you. There are some points to take into consideration before selecting a console, but indeed no game console can ever be regarded the best by any person other than the users themselves.
In order to make the best choice, consider following points before making a decision:
Portable or home console?
What kind of game type to play?
Budget?
Unique features, e.g. graphic qualities with Blue Ray Slot or more physical interactive games or more options from online features.
Once you have weighed all of the above factors, you should be able to choose more wisely and hopefully get the right one.
So, which game console? The choice is yours.
Nowadays, changing lifestyles and technological breakthroughs in the entertainment industry are gradually shifting our children's interests from outdoor to indoor games.
The current technology of video game consoles (VGC) is designed and developed in such a way that it attracts not only children but also adults. With the extended facilities, they can be connected to personal computers, televisions and other devices.
With both audio and video compatibility, it enables gamers to enjoy unlimited entertainment.
With the availability of advanced technology for batteries, portable game consoles have become more convenient and reliable as options for entertainment gadgets. GfK Indonesia estimates that the 2008 VGC market in Indonesia was approximately one million units.
In areas that GfK covers (Jakarta and Surabaya) portable models accounted for 61 percent of total consoles sold, while desktop (home type) accounted for the remaining 39 percent (excluding VGCs with non-replaceable software)
Leading brands like Sony, Nintendo and Microsoft cumulatively accounted for more than 95 percent of total VGC sales throughout 2008. Among these three players, Sony clearly dominated the market with a more than 60 percent market share, followed by Nintendo and Microsoft with 32 percent and 2 percent respectively.
Besides variety of models, the availability of almost unlimited game software gives Sony a definite advantage in the competition.
Although Nintendo is not considered the biggest player in Indonesia, Nintendo's evolutionary way of playing games and its low price has certainly created a unique position for Nintendo.
Focusing on the portable segment, among the choices of game consoles available, recently the Sony PSP Slimlite became the best selling game console model in GfK areas. This model is a slimmer version of the previous PSP model with a price range of Rp 2.8 million to Rp 3 million in February 2009. In second position, the DS Lite from Nintendo has a more competitive price of Rp 1.5 million to Rp 1.6 million.
Generally, most consumer decisions on which console to buy is influenced by the available game selections. PSP Slimlite offers something more, which is better graphic quality in the portable segment.
Nintendo DS, on the other hand, offers a different gaming experience with its touch screen and unique game selections. Combined, Sony and Nintendo accounted for more than 90 percent of portable game console sales.
With all of the available video game console options on the market, it can be quite confusing when it comes time to make a decision on which to buy.
However, don't be too bothered about it. Just ask yourself a few simple questions, as outlined below, and you can easily decide which system is right for you. There are some points to take into consideration before selecting a console, but indeed no game console can ever be regarded the best by any person other than the users themselves.
In order to make the best choice, consider following points before making a decision:
Portable or home console?
What kind of game type to play?
Budget?
Unique features, e.g. graphic qualities with Blue Ray Slot or more physical interactive games or more options from online features.
Once you have weighed all of the above factors, you should be able to choose more wisely and hopefully get the right one.
So, which game console? The choice is yours.
Monday, October 26, 2009
Surf till you drop on your mobile
The pager is history. More than 10 years ago, this device was very popular in Indonesia and could be seen attached to every executive's belt.
The era of the pager ended when the first affordable mobile phones were introduced. With superior features and flexibility, mobile phones enable people to communicate with each other easily either through voice call or short message service (SMS). Mobile phones offer many benefits. First, people can keep in touch anywhere and anytime with their family, friends and business associates. Second, with advancements in technology, many phones are equipped with additional features such as music player, digital camera and Internet connection.
Although the average retail price of mobiles in Indonesia is lower than in neighboring countries such as Singapore and Malaysia, Indonesia is an important market for mobile phones considering its vast population compared to other countries in Southeast Asia. Mobiles retail here for 34 percent and 31 percent less than in Singapore and Malaysia respectively.
The Indonesian mobile phone market is generally divided into Global System for Mobile communication (GSM) and Code Division Multiple Access (CDMA). Based on a GfK retail tracking study, GSM mobile phones dominate the market with a more than 80 percent share. Although people may have both technologies in a single handset (GSM-CDMA), so far the demand for dual phone handsets is minimal (1 to 2 percent of total demand).
In the GSM market, users can access the Internet through their mobile phones as long as their phones have the General Packet Radio Service (GPRS) feature. This is the basic Internet connection through a mobile phone network. If users want to have a faster Internet connection, they can use a 3G capable handset.
Even though 3G capable mobiles were first retailed here in January 2004, it was not until September 2006 that a 3G network was available. The segment has since grown significantly, with 3G mobile sales accounting for 21 percent of total mobile phones sales. Price-wise, 3G mobiles are relatively more affordable than before. For example, the first 3G mobile in January 2004 retailed for Rp 4.4 million, whereas today's average price is Rp 2.8 million. The cheapest 3G mobile sells for less than Rp 1 million. Based on GfK research, there are more than 100 models of 3G phones on the market.
The latest available technology in the GSM mobile phone industry is 3.5G technology. This is also known as High Speed Downlink Packet Access (HSDPA) capable handsets. With this technology, Internet access using mobile technology is faster. It is claimed that connection speed can reach up to 3.6 Mbps, depending on area of access.
Mobiles with the HSDPA feature have dominated 3G sales in Indonesia since December 2008. Among 3G handsets, HSDPA equipped phones account for 51 percent of total sales. The average retail price of HSDPA mobiles is Rp 3.5 million, while the cheapest sells for Rp 1.45 million. Yes, it is very affordable! By spending an extra Rp 500,000, you can surf the Net with your phone with more comfortable connection speed.
Meanwhile in the CDMA market, using a mobile phone for surfing the Internet is not as popular as with GSM users. The recent technology in CDMA industry to boost the speed for Internet connection through a mobile phone is called CDMA EV-DO (Evolution Data Optimized). Although this technology equals 3G technology in the GSM industry, it takes time for users to get used to this technology. Some say the limited area coverage is of major concern. This is the challenge for CDMA operators to change the image about their service. Once the image is changed, we are quite certain that sooner or later users will consider this technology, as a more affordable rate is offered by CDMA operators.
Nowadays, the number of people accessing the Internet through their mobile phone is increasing. There are various reasons why this is becoming popular. One reason is the support from network service providers and mobile operators in offering very affordable rates for accessing the Internet through their service. It is apparent that we don't need additional devices, just a mobile phone, plus a little money for unlimited usage so we can surf till we drop!
The era of the pager ended when the first affordable mobile phones were introduced. With superior features and flexibility, mobile phones enable people to communicate with each other easily either through voice call or short message service (SMS). Mobile phones offer many benefits. First, people can keep in touch anywhere and anytime with their family, friends and business associates. Second, with advancements in technology, many phones are equipped with additional features such as music player, digital camera and Internet connection.
Although the average retail price of mobiles in Indonesia is lower than in neighboring countries such as Singapore and Malaysia, Indonesia is an important market for mobile phones considering its vast population compared to other countries in Southeast Asia. Mobiles retail here for 34 percent and 31 percent less than in Singapore and Malaysia respectively.
The Indonesian mobile phone market is generally divided into Global System for Mobile communication (GSM) and Code Division Multiple Access (CDMA). Based on a GfK retail tracking study, GSM mobile phones dominate the market with a more than 80 percent share. Although people may have both technologies in a single handset (GSM-CDMA), so far the demand for dual phone handsets is minimal (1 to 2 percent of total demand).
In the GSM market, users can access the Internet through their mobile phones as long as their phones have the General Packet Radio Service (GPRS) feature. This is the basic Internet connection through a mobile phone network. If users want to have a faster Internet connection, they can use a 3G capable handset.
Even though 3G capable mobiles were first retailed here in January 2004, it was not until September 2006 that a 3G network was available. The segment has since grown significantly, with 3G mobile sales accounting for 21 percent of total mobile phones sales. Price-wise, 3G mobiles are relatively more affordable than before. For example, the first 3G mobile in January 2004 retailed for Rp 4.4 million, whereas today's average price is Rp 2.8 million. The cheapest 3G mobile sells for less than Rp 1 million. Based on GfK research, there are more than 100 models of 3G phones on the market.
The latest available technology in the GSM mobile phone industry is 3.5G technology. This is also known as High Speed Downlink Packet Access (HSDPA) capable handsets. With this technology, Internet access using mobile technology is faster. It is claimed that connection speed can reach up to 3.6 Mbps, depending on area of access.
Mobiles with the HSDPA feature have dominated 3G sales in Indonesia since December 2008. Among 3G handsets, HSDPA equipped phones account for 51 percent of total sales. The average retail price of HSDPA mobiles is Rp 3.5 million, while the cheapest sells for Rp 1.45 million. Yes, it is very affordable! By spending an extra Rp 500,000, you can surf the Net with your phone with more comfortable connection speed.
Meanwhile in the CDMA market, using a mobile phone for surfing the Internet is not as popular as with GSM users. The recent technology in CDMA industry to boost the speed for Internet connection through a mobile phone is called CDMA EV-DO (Evolution Data Optimized). Although this technology equals 3G technology in the GSM industry, it takes time for users to get used to this technology. Some say the limited area coverage is of major concern. This is the challenge for CDMA operators to change the image about their service. Once the image is changed, we are quite certain that sooner or later users will consider this technology, as a more affordable rate is offered by CDMA operators.
Nowadays, the number of people accessing the Internet through their mobile phone is increasing. There are various reasons why this is becoming popular. One reason is the support from network service providers and mobile operators in offering very affordable rates for accessing the Internet through their service. It is apparent that we don't need additional devices, just a mobile phone, plus a little money for unlimited usage so we can surf till we drop!
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