Lenovo to hike prices up to 20 percent in Indonesia

Summary:The PC giant will raise prices to cope with skyrocketing imports costs caused by the weakening rupiah, which has depreciated by 16 percent against the U.S. dollar so far this year--most of it in the last two months.

Lenovo is set to hike prices of its pesonal computers (PCs) by up to 20 percent in Indonesia, following the sharp depreciation of the local currency this year.

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"We will adjust our prices upward by 10 percent to 20 percent in accordance with the latest exchange rate," said Lenovo Indonesia chief operating officer, Sandy Lumy, according to the Jakarta Post on Wednesday.

He added prices across all market segments will rise because the import costs for the products were in U.S. dollars. The Indonesian rupiah has weakened by 16 percent against the greenback so far this year, most of it over the last two months due to massive capital outflows, it noted.

The price hikes will apply to all newly shipped PCs , but current inventory in warehouses and stores will not be affected, according to Sandy.

Indonesia contributes the lion's share of Lenovo's sales in Southeast Asia, at about 35 percent. The market, offers much potential for hardware manufacturers with a largely untapped 3 percent PC penetration rate.

Topics: Hardware, Lenovo, PCs

About

Loves caption contests, leisurely strolls along supermarket aisles and watching How It's Made. Ryan has covered finance, politics, tech and sports for TV, radio and print. He is also co-author of best seller "Profit from the Panic". Ryan is an editor at ZDNet's Asia/Singapore office.

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