Weak rand is causing havoc for technology companies
Christopher Riley, CEO of laptop and accessories retailer, The Notebook Company, says this is creating fears that some technology companies may go bust, or have to retrench staff.
"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. We have seen our turnover stay more or less static, but many computer companies are hurting due to the moribund rand," he said.
Other challenges
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. The rand has lost 30% to the dollar over the last 12 months and has been flirting with the R18 to the dollar mark.
"When your margin is big one can withstand volatility. But one needs to remember that margin on laptops and PC goods are mostly below 10%. This does not allow for such fluctuations," says Riley.
"Additionally, if you cannot give an accurate quote due to the volatility of the market, then your quotes are almost like 'pinning 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."