Prices of IT-products remaining stable in Azerbaijan
By Nigar Orujova
The western-sanction-hit on Russian economy could not affect the IT-market in Azerbaijan, experts believes.
“It is unlikely that the price increase in Russia will affect the market of Azerbaijan, as the high-tech products in Azerbaijan is not imported from this country. And even if imported, it is not in so significant amount," said Jumshud Aliyev, Head of DiVi service center.
The instability of the Russian national currency has caused a twofold increase in the sales of computer equipment. About 20 percent rise in price of computer equipment was noted in Russia in last December. Moreover, computer retail’s market participants forecast some 20-40 percent increase in the prices of all categories of imported goods in the first quarter of this year.
Aliyev believes that the price increase of IT-products in Russia is connected with the inflation, rather than the classic tandem of supply and demand.
"Obviously, there are people willing to take advantage of the situation to obtain greater profits. The main issue is selling previously purchased goods at prices higher than the value of their initial purchase,” he explains.
In most cases, Azerbaijani importers purchase goods directly from the producers or import computer equipment and electronics from China, Taiwan, South Korea, Japan, Canada and European countries.
About 20 percent of the products are purchased from large distributors in Dubai while some 10.5 percent of computer equipments are imported to Azerbaijan by individuals and electronics stores.
For this reason, the prices of IT-products in Azerbaijan may change only with the change of the prices in the exporting countries, or in the case of higher tax rates, as well as changes in customs duties.
"Taking into account the facts that the domestic market supply exceeds demand, the fierce price competition of market participants and simplified credit terms for the purchase of the final product, price increases of IT-products in Azerbaijan is not expected in the near future," Aliyev said.
Azerbaijan is now at a new stage of technological development, with the state being the largest customer of high-tech products in the market of the country.
The country is expected to solve the problem of "digital divide" between the center and the regions of Azerbaijan in the next years. To overcome this "divide", the projects developing broadband infrastructure and satellite systems will play an essential role.