We can't sell a Windows program for less here than in another country," Axel Steinman, director of Microsoft's Argentina subsidiary, explained.
When the Argentine peso was devalued in January, the price of computer products in pesos doubled.Curbs on transferring money abroad also made it difficult to import products, leading to shortages.
The industry may also suffer the consequences of customers deciding to opt for cheaper products.
"Though the value of software sales will fall 53 percent and that of hardware by 57 percent, the number of units we expect to sell is only 30 percent lower than last year.This has to do with customers replacing mainframe computers, for example, with networks of personal computers," Steinman
, the world's largest software company, expects its sales in Argentina, which totaled $80 million in 2001, to drop to $64 million this year.
"We are nevertheless maintaining all our investments, including personnel, though some companies have laid off 60 percent of staff and others closed down altogether," Steinman
©Zwire National News