Why tech is getting more expensive in SA

Hanno Labuschagne

Hanno Labuschagne

Journalist
Staff member
Joined
Sep 2, 2019
Messages
6,489
Reaction score
4,779
Why tech is getting more expensive in SA

The weakened rand has heavily impacted the cost of distributing imported tech in South Africa over recent years.

The South African rand has weakened significantly since 2018 — from less than R12 to the US dollar to R15.54 per dollar today.

However, having reached a low of R19.35 to the dollar in April 2020, the current situation paints a better picture.
 
Tech has Always been more expensive in SA, this is not a new thing. lol
eg. I bought my Samsung Note 8 on black Friday 2017 just after release, from Malaysia & paid 5k, here it was selling for 12k at the time. I imported a Samsung monitor from Korea many years ago & spent 6k, here it was selling for anything over 12k
 
GhostSixFour said:
It's like these people forget forward cover exists.
Click to expand...
Forward Cover introduces more overhead in both COGS and management and over a fin year, it equates to a nett loss.

When u have to buy stock u have to buy it now, can't wait for a good XE. Your customers are not interested in waiting months for a good XE based deal.

Stock is king, take or leave it.
 
I don't believe their reasons for a moment, local distros are profiteering and they would like everyone to believe "but our margins are so thin" horseshit.
A Gigabyte 6500xt that comes from local distro costs R2800 more than xfx 6500 xt from Wootware which imports their own stock.

Local Prices
Wootware XFX 6500 XT = R4199
Progenix(Cheapest I could find) Gigabyte 6500 XT = R7002

Retail Prices in the USA
XFX 6500 XT = $279.99
Gigabyte 6500 XT = $259.99

That is a massive difference in price, where is all that extra cheddar going?
For Christ sake I can buy a PowerColor 6500XT($269.99) from Amazon USA right now for ZAR 5,165.32 including shipping or a XFX 6500 XT($279.99) also from Amazon for ZAR 5,455.39
 
The South African rand has weakened significantly since 2018 — from less than R12 to the US dollar to R15.54 per dollar today.
Click to expand...

Currently, at R17.33 to the euro, the exchange rate has climbed substantially from R10.22 in January 2012.
Click to expand...

Strange. I thought that the mandate of the Reserve Bank was to protect the value of the rand. But I guess that the only way to remain globally competitive would be to keep dropping it, because then at least the coal and gold miners will still have jobs.
 
All these issues are policy driven, I blame the unions, everything they advocate for kills jobs, tumbles the rand and make it impossible for industry in SA, was at hardware store today getting some shelving brackets, pieces of metal with holes drilled in them and bent at 90 degrees, made in Germany.

If anything were made locally, no exchange rate, no taxes and no shipping.
 
Jimmy-Z said:
Tech has Always been more expensive in SA, this is not a new thing. lol
eg. I bought my Samsung Note 8 on black Friday 2017 just after release, from Malaysia & paid 5k, here it was selling for 12k at the time. I imported a Samsung monitor from Korea many years ago & spent 6k, here it was selling for anything over 12k
Click to expand...

Yeah it has always been more expensive because our local lot profiteer to some level...

But for me, even looking at the international price benchmarks, a new PC is now a horrendously expensive exercise to get anything even half decent these days.
 
ToxicBunny said:
Yeah it has always been more expensive because our local lot profiteer to some level...

But for me, even looking at the international price benchmarks, a new PC is now a horrendously expensive exercise to get anything even half decent these days.
Click to expand...
And it will likely never return to previous levels because retailers have seen what people are willing to pay. The same with new car prices, as well. The new norm in the US seems to be putting 'market adjustment' values on new cars that are to be sold.

It's madness.
 
PhireSide said:
And it will likely never return to previous levels because retailers have seen what people are willing to pay. The same with new car prices, as well. The new norm in the US seems to be putting 'market adjustment' values on new cars that are to be sold.

It's madness.
Click to expand...

Pretty much....

And what annoys me, is I've gone from being able to have a top of the line machine 10 or 15 years ago, to looking at the prices of a midrange PC and balking at the price.
 
ToxicBunny said:
Pretty much....

And what annoys me, is I've gone from being able to have a top of the line machine 10 or 15 years ago, to looking at the prices of a midrange PC and balking at the price.
Click to expand...
I sold my PC right before the whole panic-demic started, pity I didn't wait a while as I could have made a good buck.

I intended on buying again, but then...yeah. You know the story:(
 
Article says it's not only the exchange rate but then focuses on the exchange rate and only has 3 lines on shipping costs. Doesn't deal with how the prices of tech have gone up and not just in SA. On all international forums people are complaining that a "mid range" graphics card now costs the same as a high end one from 10 years ago. The same for things like processors, used to be able to buy a good mid range for next to nothing. Now you have to fork out high end prices and get something that's barely capable. If you go for what they call low end or entry you get something that's hardly usable. No wonder people are buying Playstations and Xboxes.
 
Swa said:
Article says it's not only the exchange rate but then focuses on the exchange rate and only has 3 lines on shipping costs. Doesn't deal with how the prices of tech have gone up and not just in SA. On all international forums people are complaining that a "mid range" graphics card now costs the same as a high end one from 10 years ago. The same for things like processors, used to be able to buy a good mid range for next to nothing. Now you have to fork out high end prices and get something that's barely capable. If you go for what they call low end or entry you get something that's hardly usable. No wonder people are buying Playstations and Xboxes.
Click to expand...

Yup...

In many ways people are buying PS's and Xbox's for their gaming, and low-midrange laptops to serve their general computing needs... puts things into a relatively acceptable price bracket whilst still getting a good gaming experience and a passable computing experience.
 
Intox said:
I don't believe their reasons for a moment, local distros are profiteering and they would like everyone to believe "but our margins are so thin"
Click to expand...

When last did you get a quote for shipping?

Every reason listed is pretty accurate. There are other costs that haven't even been listed either
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X