Paul, Article...Intel (INTC.O) sees potential in Egypt PC market....
November 18, 1998
CAIRO, Reuters [WS] : Egypt has one of the world's fastest growing personal computer markets and potential to develop the industry but it needs to curb smuggling, Intel (INTC.O) officials said on Tuesday.
''The growth here is very fast. It is spreading,'' said Rob Eckelmann, managing director of Intel's Europe, Middle East and North Africa regions.
He said Egypt had 600,000 installed computers. ''That number by the end of next year will be close to a million units.''
Intel officials were in Egypt to conduct a training seminar.
Eckelmann said Egypt's economic growth, estimated by the government at over five percent a year, was encouraging for the PC market but spending on information technology was still low.
''Currently (Egypt) spends half a percent of GDP on IT and the world average is about three times that,'' he said.
Gilbert Lacroix, Intel Middle East general manager, said Egypt needs to reduce taxes on computers to end smuggling.
He said Intel suggested to Egyptian ministers on Monday ways to develop the industry, such as with incentives like lower taxes and deducting the computer costs from revenue before tax.
''The total level of tax on PCs today is 20 percent. Because of that we know that people are smuggling,'' said Lacroix.
He said the market in Egypt is growing by 35 percent while other Arab markets are expanding at 20 to 25 percent.
Eckermann said: ''That places Egypt with China as the fastest growing PC markets in the world.''
Lacroix said Egypt's 62 million population and its late start in the computer business encouraged industry growth.
He said market potential was helped by the fact that a large percentage of the population was between 15 and 20 years old.
Lacroix said Egypt could soon be a major exporter of assembled computers. ''Around 65 percent of PCs sold in Egypt are assembled locally. So all these small businesses one day can emerge into big businesses.''
Intel is not currently planning manufacturing in Egypt.
''But we are doing a lot of investment in terms of computer education and training. We're making investments more in the local industries rather than Intel coming in with some presence from abroad itself,'' Eckelmann said.
_____________________________________________________________________
Let's just throw in another 10 million chip sales in a few years! :-)
Michael |
