Tech price hikes expected in SA

The weak Rand will lead to higher cost in electronics prices in South Africa, dealers warn

Crystal ball currency money price business predict future

South Africans should expect an increase in prices of consumer electronics due to the weakening of the Rand over the past month, local vendor Mustek recently told MyBroadband.

Because the majority of electronics imports are US Dollar dominated, the weakening of the Rand-Dollar exchange rate has a domino effect on the prices of gadgets such as personal computing devices and televisions, Mustek said.

In a recently released statement, The Notebook Company warned that they would have to increases prices immediately by as much as 10% as they can no longer absorb the “currency hits”.

The Notebook Company said that it expected many technology distributors in South Africa are going to have to increase prices across the board.

Mustek offered some statistics to back up this prediction, explaining that over 95% of information technology equipment sold in South Africa is imported.

“In these situations, everybody pays more in Rand terms, including suppliers and resellers,” Mustek said. “At the end of the day this ultimately results in the end-user paying more for the particular device.”

Pinnacle Africa agreed with Mustek, saying that a price increase is inevitable as they work on a cost per shipment basis.

Asked how long prices would remain high and whether they would come down again if the Rand strengthened, Mustek said that it’s not possible to make an accurate prediction at this stage.

“Due to the volatility of the market, it is difficult to predict how long prices will remain at higher levels,” Mustek said.

Samsung, Sony, LG, Asus, and Rectron were also all asked for their take on the Rand-Dollar situation. Samsung, Sony, and Asus declined to comment; LG did not respond by the time of publication. Rectron explained that their spokesperson for this is in the midst of work for their financial year-end and could therefore not comment by the time of publication.

Biggest and most expensive TVs in SA

Positives to weak rand: analysts

Rand hits R10 to the dollar

TV prices in South Africa: why the increase?

iPad 2 prices hiked again

Share your thoughts

Join the conversation

Connect with Us

androidappletwitterfacebookgoogleplusfeednewsletter

Poll

Which online social platform is your favourite?

View Results

Loading ... Loading ...

More News

New trick criminals use to steal your One-Time PIN

One Time Pin on phone

Through social engineering attacks, criminals are convincing South Africans to hand over their one-time PINs – which can cost them thousands of rand.

2016 MyBroadband Cloud and Hosting Conference in photos

Cloud and Hosting Conference

The 2016 Cloud and Hosting Conference attracted a record number of delegates, and provided a platform for IT executives and managers to interact with cloud and hosting providers.

Uber to review South African price cuts

Uber logo city

Internet ride-sharing app Uber will decide on June 6 if it will keep its winter price cuts or hike fares again.

Xiaomi Mi 5 launched in South Africa

Xiaomi Mi 5

Mobile in Africa group has launched Xiaomi’s flagship smartphone in South Africa.

X

Newsletter Subscription


Name
Email *
Enter the following to confirm your subscription *
Captcha image


Free MyBroadband Newsletter
Subscribe
×