Tech price hikes expected in SA

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

By - June 5, 2013
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

Forum discussion

Shutterstock is the image partner of MyBroadband – more technology images

Join the conversation

Connect with Us

androidappletwitterfacebookgoogleplusfeednewsletter

Poll

Would you pay to see the Internet’s best videos first?

View Results

Loading ... Loading ...

More News

Eskom workers fired by SMS

Eskom switch

Workers at the Medupi power station in Lephalale, Limpopo are being threatened with disciplinary action through text messages, their trade union said on Friday

Great specials on tech and gadgets

Sale

If you are looking to save money on televisions, laptops, or tablets, you have come to the right place

New Axxess Mobile free data promotion

Axxess logo

Axxess Mobile has announced the end of its double data promotion, but will still give subscribers a chunk of free data

UberBlack price increase in Johannesburg

Uber

Uber has announced it will be upping the rates of its UberBlack service in Johannesburg effective immediately

X

Newsletter Subscription


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


Free MyBroadband Newsletter
Subscribe
X
bool(true)