Turkey’s Information Technology (IT) market size is estimated to have reached $5.2 billion in 2007 and the total ITC industry (including telecommunications) is estimated at $23.80 billion (ref. Interpro). The ICT market increase is estimated at 15% for 2008.
The break down of the ICT market gross revenue is as follows: 68% carrier services (GSM operators), 11% hardware sales, 10% telecomm equipment, 7% services (maintenance, set up, network security etc.), 3% software, 1% consumer goods. With over 7 million personal computers in Turkey and 16.5 million internet users (according to TNS Piar), pc sales are still the main driver for gross IT sales.
The introduction of ADSL (Asymmetric Digital Subscriber Line) by Turkish Telecom is providing internet speeds up to 50 times faster than the normal dial up speeds used frequently by small businesses and households and has boosted e-commerce transactions. Presently, there are 4.0 million ADSL broadband subscribers and this has brought new opportunities for hardware and software sales (including PC and notebook sales, along with accessories such as speakers, wi-fi modems, bluetooth USB sticks, digital music archives, storage and many more ‘gadgets.).
The Turkish information technologies market is dominated by hardware sales. The market has experienced double-digit growth over the past five and the hardware market for Turkey and is estimated at $2.64 billion for 2007. An estimated 2.6 million PC’s were sold in 2007, half in notebooks. Notebook sales are expected to increase as hotspots and wireless networks and applications become more available.
U.S. IT hardware and software manufacturers will find that due to time commitment, cost, and complexity of the regulatory and commercial environment, it is essential to have local representation. Although many people in the larger urban commercial centers understand English language may be a serious barrier in rural areas. It is therefore imperative that marketing information and user guides be written to the consumers’ own language. To win over the local customer, a Turkish language web site would be extremely useful.
For companies seeking to gauge market receptivity, exhibitions and conferences are excellent product launch vehicles. Reconfiguring the user interface and software would not be necessary in the initial market fact finding stages and that once market interest is determined and confirmed can the U.S. company and its local partner look at packaging the hardware and software to meet the needs of the Turkish consumer. Software translations may not be needed for professionals, however software products for the general consumer are necessary.