adminSouth Africans could see an increase in the price of laptops as the rand continues its downward slide against major international currencies, says a retailer.“The Notebook Company has been forced to up its prices this year. Due to the weakness of the rand against the dollar each shipment of computer goods needs to be considered to see if a price hike is required. We don’t see the rand improving any time soon, so the prices of certain computer products will remain considerably higher than last year,” said Christopher Riley, CEO of the Notebook Company.
He added that the price of laptops and accessories had increased by 15% to make up for the falling local currency.
Over the last two years, the rand has depreciated from around R9,55/$1 to R11,94 on Monday.
The price fluctuation hits retailers as most computer hardware in SA is imported.
“Some computer stock is flown in – and some is shipped in. When products are flown in, it is easy for vendors to adjust their prices timeously. But when they are shipped in the prices can be effected while the products are still at sea, meaning that computer vendors cannot always foresee higher costs,” Riley said.
He added that retailers often have to absorb squeezed profit margins as a result of these unforeseen price fluctuations.
“Vendors, in these instances, have to take a price knock until adjusting prices for the next shipment.”
The increase in price has seen sales stall as consumers decline to buy new laptops or delay purchases until the next version of Windows is officially launched.
Smartphone prices are trending upward. (Duncan Alfreds, Fin24)
The Notebook Company said that sales in the first three months of the year were flat compared to the same period in 2014.
The depreciation has also had an impact on smartphone prices which have divided the market into what people want, and can afford. — Tech24.
Online Reporter