{"id":628260,"date":"2026-02-09T08:00:43","date_gmt":"2026-02-09T06:00:43","guid":{"rendered":"https:\/\/mybroadband.co.za\/news\/?p=628260"},"modified":"2026-02-09T08:16:03","modified_gmt":"2026-02-09T06:16:03","slug":"new-normal-for-tech-prices-in-south-africa","status":"publish","type":"post","link":"https:\/\/mybroadband.co.za\/news\/hardware\/628260-new-normal-for-tech-prices-in-south-africa.html","title":{"rendered":"New normal for tech prices in South Africa"},"content":{"rendered":"\n<p>South African tech distributors Esquire and Pinnacle ICT have warned of substantially higher tech prices in 2026 that may never drop to previous levels due to the global memory supply crunch.<\/p>\n\n\n\n<p>Esquire CEO Mahomed Cassim told MyBroadband the rapid expansion of AI-focused data centres, especially in the U.S., was leaving little for the traditional commercial and consumer markets.<\/p>\n\n\n\n<p>&#8220;These facilities are consuming enormous volumes of DRAM, SSDs, and high-capacity hard disk drives, with stock being purchased and deployed at scale,&#8221; Cassim said. <\/p>\n\n\n\n<p>&#8220;The increased competition for memory-related components has resulted in sustained pricing pressure throughout the supply chain.&#8221;<\/p>\n\n\n\n<p>Cassim said that manufacturer-level increases in DRAM and NAND pricing, combined with constrained allocations and longer lead times, have translated into higher landed costs for distributors.<\/p>\n\n\n\n<p>Esquire absorbed some of the increases for stock arriving in December and early January, but a portion has inevitably been passed on to the local market with new stock in late January and February.<\/p>\n\n\n\n<p>While new pricing varies by brand and configuration, Esquire estimated that memory components like RAM, SSDs, and hard drives are averaging at 25% to 40% higher than last year.<\/p>\n\n\n\n<p>Notebooks and desktops are approximately 15% to 25% more expensive, while servers and enterprise systems have about 20% to 40% higher price tags. <\/p>\n\n\n\n<p>Pinnacle brand director George Moss said that certain brands had experienced price increases of up to 260% over a four-month period.<\/p>\n\n\n\n<p>&#8220;Others are only beginning to implement increases that are expected to continue, particularly within the PC segment,&#8221; he said. <\/p>\n\n\n\n<p>Moss believes the industry has not yet seen the peak of the increases. &#8220;Current indicators suggest that further price escalations are still ahead rather than behind us,&#8221; he said. <\/p>\n\n\n\n<p>Esquire general manager Kabir Ismail said that high-performance and higher-capacity configurations were particularly affected.<\/p>\n\n\n\n<p>&#8220;These are the same components being prioritised for AI and hyperscale data centre deployments,&#8221; Ismail said. <\/p>\n\n\n\n<p>&#8220;Entry-level products have generally experienced smaller increases, while premium and performance-oriented products have seen the sharpest rises.&#8221;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Prices not going back to normal<\/h2>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1200\" height=\"675\" src=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2026\/01\/Memory-sticks_RAM-edited.jpg\" alt=\"\" class=\"wp-image-624649\" srcset=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2026\/01\/Memory-sticks_RAM-edited.jpg 1200w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2026\/01\/Memory-sticks_RAM-edited-600x338.jpg 600w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2026\/01\/Memory-sticks_RAM-edited-768x432.jpg 768w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/figure>\n\n\n\n<p>This assessment <a href=\"https:\/\/mybroadband.co.za\/news\/business\/627502-bad-news-for-people-who-want-to-buy-computers-smartphones-and-other-tech-in-south-africa.html\">differs from Mustek&#8217;s<\/a>, which found the highest impact on its entry-level devices, with lower increases for mid-range and high-end products.<\/p>\n\n\n\n<p>However, the apparent contradiction could be due to the two distributors having different mixes of tech products.<\/p>\n\n\n\n<p>While the relatively weaker U.S. dollar has offset some of the component-level cost increases, Esquire said this benefit has been inconsistent and insufficient to fully offset the impact of the shortage.<\/p>\n\n\n\n<p>Pinnacle was hesitant to make any predictions regarding a market correction. &#8220;The timing of any meaningful market correction is difficult to predict,&#8221; Moss said. <\/p>\n\n\n\n<p>Esquire expects some stabilisation may occur later in the year as manufacturing capacity expands and supply chains adjust, but a full return to pre-shortage pricing is unlikely in the near term.<\/p>\n\n\n\n<p>Cassim said that even if supply improved, South Africans should expect prices to settle at a &#8220;new normal&#8221; rather than reverting to historic lows. <\/p>\n\n\n\n<p>Esquire said it would work closely with global vendors to secure stock, manage allocations responsibly, and minimise disruption to the South African market.<\/p>\n\n\n\n<p>&#8220;The current environment underscores the growing influence of AI infrastructure investment on traditional technology supply chains and pricing worldwide,&#8221; the distributor said.<\/p>\n\n\n\n<p>Moss advised tech buyers to plan carefully, act with urgency where possible, and be prepared for continued pricing pressure should purchasing decisions be delayed.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>At least one major ICT distributor in South Africa believes tech price increases driven by global demand for AI data centres will result in permanent hikes in tech prices.<\/p>\n","protected":false},"author":341042,"featured_media":589268,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[11737,6032,100900,103202,92451,100947,6072,103069,103203,43538,100912],"class_list":["post-628260","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-hardware","tag-dram","tag-esquire","tag-esquire-technologies","tag-george-moss","tag-ict-distributors","tag-kabir-ismail","tag-mahomed-cassim","tag-memory-shortage","tag-pinnacle-ict","tag-ssds","tag-tech-distributors"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/628260"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/341042"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=628260"}],"version-history":[{"count":7,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/628260\/revisions"}],"predecessor-version":[{"id":628303,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/628260\/revisions\/628303"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/589268"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=628260"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=628260"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=628260"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}