Netbooks help spur recovery



Computer sales increased in the first quarter of this year despite the economic downturn, boosted by sales of budget-friendly and more portable netbooks. Total sales of computers rose 9.8 per cent in the first quarter to 250,500 units compared with the first quarter last year, data from the consultancy GfK Retail and Technology showed.

But the total value of sales rose only 1 per cent to US$14.4 million (Dh52.8m). Abner Jores, a product manager at GfK, said this was due to manufacturers cutting the prices of computers or adding more features for the same price to stay competitive. Mr Jores said more consumers buying lower-priced netbooks was another reason. "It's getting more affordable," he said. "We're not saying it's cheap but it's becoming more affordable for the consumers."

The sales boost comes after a difficult year for most retail segments, as shoppers put off making non-essential purchases. Last year, shoppers in the UAE spent Dh2.73 billion on computer hardware such as desktops and laptops, 22.4 per cent less than in 2008, data from GfK showed. While the total number of hardware units sold rose 5 per cent, the total sales dropped as manufacturers and retailers cut prices to attract buyers.

But this year is showing signs of improvement and prices are not falling as fast, said Mr Jores. This year's first-quarter sales of netbooks, a relatively new category, have risen the most. Sales rose 59 per cent to 47,700 units compared with the same quarter last year, the GfK data showed. Total value of sales grew at a slightly more modest rate of 46 per cent to Dh18.1m in the first quarter. Netbooks are priced at between Dh999 and Dh2,000, compared with notebooks that cost more than Dh3,000, said Mr Jores.

But the biggest sellers are notebooks, or laptop computers. The number of units sold in the first three months of this year rose 3.1 per cent to 174,000, compared with the same period a year earlier, GfK data show. Sales value rose 4.1 per cent to $137m. Desktop computer sales in the Emirates fell by 2.1 per cent in the first quarter to 28,700 units, while the sales value rose 1 per cent to $14.4m.

Probir Mukherjee, the managing director of electronics for Al-Futtaim, said another factor driving sales was new technology, such as faster processors and new operating systems. Mr Mukherjee said many manufacturers were choosing to throw in more features for similar prices. "Pricing has been competitive and we saw last year that prices have gone down," he said. "But with these new computers, you're getting much more value for the same or slightly higher price points."

People in the average household were increasingly opting to buy their own computer instead of sharing a family desktop, said Ashish Panjabi, the chief operating officer of Jacky's Electronics. "With things like Facebook, Twitter, you tend to spend a lot more time online than you would earlier," Mr Panjabi said. "And a lot more people in the family are online at the same time now and they can't share a PC any more."

aligaya@thenational.ae

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Southampton 2 (Ings 32' & pen 89') Tottenham Hotspur 5 (Son 45', 47', 64', & 73', Kane 82')

Man of the match Son Heung-min (Tottenham)

The White Lotus: Season three

Creator: Mike White

Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell

Rating: 4.5/5

Sri Lanka v England

First Test, at Galle
England won by 211

Second Test, at Kandy
England won by 57 runs

Third Test, at Colombo
From Nov 23-27

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Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal

Stars: Basel Adra, Yuval Abraham

Rating: 3.5/5

Results

5pm: UAE Martyrs Cup (TB) Conditions Dh90,000 2,200m

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5.30pm: Wathba Stallions Cup (PA) Handicap Dh70,000 1,400m

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7pm: Sheikha Fatima bint Mubarak (IFAHR) Ladies World Championship (PA) Prestige Dh125,000 1,600m

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Uefa Champions League semi-finals, first leg
Liverpool v Roma

When: April 24, 10.45pm kick-off (UAE)
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At a glance

Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.

 

Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year

 

Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month

 

Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30 

 

Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse

 

Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth

 

Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances

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Skewed figures

In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458. 

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