Consumers are probably in for one of the best Christmases yet if they want to buy a laptop, notebook or tablet PC - prices have fallen by between 20% and 40% this year, retailers say.
The prime reason has been the strength of the rand, which has gained about 46% against the US dollar so far this year. A combination of a stronger gold price and a struggling US economy have contributed to the local currencies continued strength.
Most portable type computers are imported into the country and retailers say the distributors have been quick to pass on the new and lower prices to consumers. And the most noticeable effect is that a P4 laptop computer that used to retail for about R14 500 is now selling for around R8 500.
Christopher Riley, MD of The Notebook Company, says sales of such items have increased by 40% during the last nine months, but revenue has only increased by 10%.
"The strong Rand is certainly boosting laptop sales across the board, but retailers are not reaping such large profits, " he says.
However, his profits are still higher than the official inflation measure, the consumer price index that rose at an annual rate of 3.7% in September compared to 5.1% in August.
Paul Susan, director of operations at Incredible Connection, agrees with Riley`s statements, but says the rand strengthening cycle is probably coming to an end. "We don`t expect the rand to keep strengthening as everyone knows that will be damaging to the economy as a whole."
Riley says that a change in spending patterns has occurred with consumers more inclined to be the ones out shopping. Small companies have been forced to reign in their expenses as they are exposed to the stronger rand.
Both retail operations say that traditional laptops dominate the portable market with notebooks and tablet PCs coming way behind in sales. They also say that consumers are looking to get the most out of their purchases.
"There has been a definite challenge to meet consumers` expectations, but the manufacturers have risen to it," Susan says.
Riley believes that consumers and businesses have been slow to realise the benefits of tablet PCs, but they will soon see their advantages. "The flexibility offered by a tablet in that one can draw directly onto the screen offers a lot more usability than with the traditional mouse."
He says that consumers are also demanding more seamless connectivity including the ability to connect to WiFi mobile protocols.
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