Hyundai enters PC market via Farmers

By PETER GRIFFIN

Korean company Hyundai is set to enter the New Zealand PC market in competition with Hewlett-Packard, Dell and whitebox assembler The PC Company.

Hyundai has begun selling its line of PCs in 45 Farmers stores in an exclusive nationwide deal with the retailer. The computers will be assembled in Adelaide, shipped to New Zealand and sold for between $2299 and $3799 (GST inclusive), covering three common price points for desktop PCs. Farmers chief executive Nick Lowe said Farmers had become a major PC retailer but needed to broaden its product range. He said Hyundai was known for making everything from oil tankers to mobile phones so would be familiar to New Zealanders.

"Farmers has built a significant PC business, primarily around The PC Company. If you look at any successful PC retailer you can buy more than one brand from them. While the brand might be new for computers, it's not a new brand for consumers."

Hyundai will enter a crowded PC market that has seen its share of consolidation, notably last year's departure of direct-selling PC vendor Gateway. Taiwanese manufacturer Acer recently stepped up its presence locally, striking a retail deal with Harvey Norman.

But Hyundai's chief executive for Australia and New Zealand Aron Jackson, said Hyundai would compete on price but aim to provide better after-sale service than competitors.

"We only buy our customer once, [customers will] have someone come to their home to set up and install their PC," said Jackson.

In the three months to June 30, Hewlett Packard had nearly 42 per cent of the PC market, followed by Dell and IBM. Acer had 1.3 per cent of the market.

PC Company marketing director Kerry Mancer, would not comment on whether Hyundai would pose a serious threat, but said The PC Company, which also has an extensive retail deal with Farmers, was used to having its PCs sold alongside those of rivals.