subscribe: Daily Newsletter

 

Tech companies in fight for survival

0 comments

Computer prices, including laptops and tablets, have increased 20% over a one month period since November 2015, throwing the technology market into disarray – creating fears that some technology companies may go bust, or have to retrench staff. This is the worst price rise in decades.
This is according to Christopher Riley, CEO of The Notebook Company, who says: “The rand has lost more than 30% over the last year and this causing havoc for technology companies who import and locally manufacture computer items based on the dollar. At The Notebook Company we have seen our turnover stay more or less static, but many computer companies are hurting due to the moribund rand.”
Despite the recent price hikes there are other challenges facing technology companies and end users. The market is so volatile that prices stay valid for just 24 hours, he adds.
“When your margin is big you can withstand volatility. But one needs to remember that margin on laptops and PC goods are mostly below 10% – and this does not allow for such fluctuations.
“Additionally, if you cannot give an accurate quote due to the volatility of the market, then your quotes are almost like ‘pinning the tail on the donkey’. This can create a devastating impact on companies. It would be better if the rand stayed stable so that we could quote our prices correctly. Right now it is impossible.”