Economic downturn or not, the demand for high tech products shows no sign of abating.
Ukraine’s IT and office equipment market grew by 44 percent, in the second quarter of 2011 compared to the same period a year ago, according to GfK Ukraine market research company. This makes the market worth Hr 2.16 billion, or roughly $270 million.
The most popular IT device sold these days is the portable computer. In 2011, laptop sales almost doubled, helped along by a significant price drop.
“When there’s an offer on the market of Hr 2,500 for a laptop, it’s a ridiculously low price,” said Valentyna Pechonchyk, an analyst from GfK Ukraine.
Although more affordable prices are helping drive the increase in sales, the market remains far from saturated in Ukraine.
Laptop computers are the top sales item at Comfy electronics retail stores in Ukraine.
Olha Royenko, a spokesperson for Comfy, said that the variety of laptops is also stimulating demand. Tablet PCs are currently the hottest product in the computer segment, coming second in sales.
The tablets have all the personal computer functions and more, only with less weight and a smaller size, making it a hit with consumers who want mobility.
“This segment is growing rapidly,” GfK’s Pechonchyk said.
Tablet PCs, however, are somewhat expensive in Ukraine, with Hr 5,300 on average, or $660.
So far the tablet PC market share is insignificant in Ukraine, but that is likely to change soon.
Apple’s famous iPad 2 is the most popular gadget among tablets, with almost a monopolistic 42 percent of the market share.
Other popular models are Samsung Galaxy Tab and Acer Iconia Tab.
Despite iPad being originally targeted at younger people, it has become increasingly popular with professionals as well, Comfy’s Royenko said.
“Comfy had a number of corporate orders of tablet PCs from Apple for office use.”
Apple’s iPad is even getting noticed in Kyiv City Council. One parliament member suggested buying 450 iPads for its members, arguing that it is cheaper than using paper. But bureaucracy dealt the idea a blow. One famous Ukrainian iPad user is ex-Prime Minister Yulia Tymoshenko.
Tablet PCs are a strong competitor of netbooks, which have similar advantages to tablets in portability, but come in the form of a laptop and without a touch screen.
Netbooks trump tablets in price, but nonetheless sales declined by 2.3 percent in the period measured by GfK.
The march toward more mobile, more universal technologies is continuing.
For instance, consumers don’t have to buy a printer, scanner and copier separately – they can be found in one product at a lower price.
“People prefer buying multifunctional devices for almost the same money as one function devices cost,” explained GfK’s Pechonchyk. Sales of multi-functional devices grew by 30 percent, while, for example, sales of scanners decreased by 11 percent.
The trend for greater functionality has also spread to mobile phones. People continue switching to smart phones with more functions and possibilities than regular mobile phones.
Their market share increased from 18 percent to 35 percent.
“Smart phone’s market share indeed grows swiftly but, at the same time, in absolute numbers the mobile phone’s share is much bigger,” Royenko pointed out.
Sales of landline phones have dropped since 2000 as their use decreases in homes, but office demand remains high.
Another new arrival to Ukraine is 3D technology, from cinemas to monitors. So far the 3D monitor market share accounts for 2 percent.
And, even if the world slips back into recession, high-tech products are in their high sales season. “In retail the most active period in terms of sales is from September until January,” Royenko said.
Kyiv Post staff writer Maryna Irkliyenko can be reached at [email protected].
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