6 - 12 September 2001
Issue No.550
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Al-Ahram Weekly Online 6 - 12 September 2001 Issue No.550 |
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Taking the plunge
More Egyptians are ready to lay down the cash for a new computer, but first-time buyers can be overwhelmed by the choices they need to make. Niveen Wahish makes sense of what's on offer
One would think the economy was booming, judging from all the shopping centres popping up dedicated to selling nothing but computers and their manifold accessories. Looks can be deceiving, however, which is a mantra to remember when setting out to buy your first computer.
First-time computer buyer, endless choices
photo: Abdel-Hamid Eid
Buying a computer is all the rage nowadays. Despite the infamous economic recession, parents want to buy them for their kids; students want to browse the Internet from the comfort of their own home; and new graduates want to develop their computer skills -- a basic requirement for virtually all job opportunities. The government's campaign to promote computer literacy and Internet awareness has given birth to a legion of new initiates burning for a computer to come home to. An estimated 175,000-225,000 computers are sold in Egypt annually.
But buying computers are not like buying a pair of shoes; there's no chance to try them and see how they feel. A computer is a major financial commitment and, unfortunately, first- time PC buyers usually do not know what they are looking for.
The problem is common in developing countries, where lack of consumer awareness is pervasive, says Zakariya Eissa, chairman of the Egyptian Society for Computer companies. One needs to know what their computer needs are and what the computer will be used for. Buyers can be dazzled by the options, their decision swayed by this or that newfangled accessory. "Avoid buying a computer with features you will not use" advises Eissa, warning that unnecessary features will only add to the bill.
Eissa also cautions that there is no such thing as a computer for life. Every three or four months a new product is introduced to the market. "No matter how many features you have on your computer, it will be outdated in a couple of years," he noted.
People often complain that the options available locally pale in comparison to abroad, but even so, the variety of available features and prices can seem daunting to the average customer. Assuming that it's a home PC that you are looking for -- e.g., a computer for word processing, browsing and downloading material from the Internet, playing games and watching video clips -- the minimum processor speed, hard disk and memory is really all you need.
In fact, if you are constrained by a tight budget, you can actually have a computer custom- made to fit your wallet. Computer outlets can be surprisingly accommodating. Raef Ramzy, who owns a computer company, says that he once assembled a computer for LE700 using second-hand spare parts. It may sound like a good deal, but Eissa is careful to warn that buying a computer assembled out of used parts is not advisable for beginners, as only professionals would know how to deal with the kinds of problems that may arise. Furthermore, should such a machine require new parts, it is unlikely that you will be able to find them. Once a model is outdated, spare parts become a rare commodity.
In many cases, a hard disk of several hundred megabytes would be enough for a home PC user, but these are no longer available new. Hard disks now start at 20 gigabytes and the minimum memory available is a Pentium III (128 RAM). Such a computer assembled to your specifications will run you somewhere between LE2,400 to LE3,500. Should you opt to go brand-name, be warned that the prices are usually LE1,500 higher for the same computer.
But Ramzy believes you get what you pay for. "If you can afford it, opt for the brand name" he says, adding that brand names are more reliable in terms of quality and performance. Moreover, even if the price is more expensive than an assembled set, the computer will often come with pre- installed original software, which saves the buyer some money on the essential and basic software needed to operate a computer. Make sure that the brand name is distributed through an agent with a local maintenance centre that provides spare parts and does repairs.
Brand names have gained increasing popularity in the Egyptian market as their prices have come down. Five years ago a brand-name computer cost around LE10,000, but today it hovers at LE5,000. This, according to Eissa has enabled brand names to gain a greater share of the Egyptian market. Eissa says that in the past, brand-name computers accounted for 10 per cent of the Egyptian market, while the rest were assembled. Today, Compaq alone has that share all to itself.
Although they're cheaper now, the price of brand names remain more expensive than abroad. Most computer experts note that for the price of the latest model computer in the US, one will get an older version in Egypt. Tarek Heiba, general manager of Compaq-Egypt puts the mark-up at about 20 per cent: five per cent for customs, three per cent incidental fees paid by the importing company, another one per cent on storage, 10 per cent sales tax and, finally, the profit margin for the local distributor. The recent drop in the value of the pound also means that imported goods are more expensive.
The price is not the only difference between what is available in the Egyptian market and what is available abroad. The lowest capacity abroad is often the highest in Egypt. "Our market is small, which means limited demand for the bigger sets, especially since the higher capacity is more expensive," explained Eissa.
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