South Africa’s IT channel is bracing for a fresh wave of price increases and shipment delays on personal computers (PCs), as distributors and resellers warn that renewed global supply chain pressures are starting to ripple through the market.
Industry players say constrained component availability, volatile shipping costs and currency uncertainty are already pushing up procurement prices, with the impact expected to become more visible to businesses and consumers in the coming months.
The warnings come at a time when PC demand remains uneven, raising concerns that higher costs and longer lead times could further dampen technology refresh cycles across the country.
The pressure reflects broader global hardware supply challenges that are increasingly spilling over into the South African market, with local distributors and resellers feeling the impact of constrained semiconductor supply, rising component costs and fragile logistics networks.
A surge in demand for chips driven by artificial intelligence (AI) infrastructure and data centres has diverted manufacturing capacity away from traditional PC and enterprise hardware, pushing up prices and extending lead times.
For South Africa, which relies heavily on imported technology, this has exposed channel players to higher procurement costs and inconsistent stock availability.
It’s complicated
On Monday, local ICT distributor Axiz sounded the alarm to its partners, warning of imminent market disruptions.
In an e-mail seen by ITWeb, the company says to partners: “Axiz would like to share an important update regarding the current global environment affecting hardware supply, lead times and pricing. We remain committed to keeping you informed so that you can plan effectively and continue to support your customers with confidence.”
According to Axiz, the global IT sector continues to experience significant pressures, particularly in the areas of memory, storage and other critical components. It notes that the rapid increase in demand for AI-driven and high-performance computing solutions has created industry-wide constraints, extended lead times, and rising manufacturing and component costs.
“We are closely monitoring these developments with our vendors and aligning our operations to ensure we can support our partners responsibly during this period,” it says.
The distributor adds that due to volatility in component availability and cost, Axiz vendors may need to cancel certain hardware orders before shipment.
“We will communicate proactively should this occur. However, this will mean that, should a vendor cancel an order, Axiz will then also need to cancel the partner order.”
It points out that in instances where there are substantial increases in component costs, manufacturing costs, tariffs, exchange rate movements, or other external factors outside of its control, pricing on hardware orders may need to be adjusted between order placement and shipment. “We will always engage with you promptly should any order be affected.”
Axiz adds: “We would like to remind you that all Axiz quotes are only valid for one day. Please ensure you request a re-quote when you are ready to place the final order. As additional information becomes available from the broader vendor ecosystem, Axiz will issue updates and supporting resources to help you manage customer expectations and project timelines effectively.
“We understand the importance of clarity and predictability in your business. Axiz remains committed to transparent communication, operational stability and ongoing support as we navigate these industry conditions together.”
Prepare for the worst
PC distributor Mustek shares similar sentiments surrounding the pressure facing the local ICT channel.
Michael Kan, Mustek brand executive, points out that like any commodity, this classic supply-demand imbalance has led to sharp price escalations across the tech sector.
According to Kan, memory is a key component of almost all technology products, but a particularly significant cost driver in computing devices such as PCs, laptops and tablets, and Mustek’s product prices are all expected to increase.
“PCs, laptops and tablets are among the most severely affected categories, as they depend heavily on DRAM for RAM and NAND for storage. Smartphones are also impacted, but computing devices face particularly acute pressure due to their higher memory requirements per unit.
“Entry-level and budget models suffer the most, as they rely on commodity components with the tightest availability, often resulting in spec reductions (eg, lower RAM or storage capacities) alongside higher prices.”
He notes the best estimates in the short term for entry-level devices is 20% to 40%, while mid- to high-end devices could see increases of 15% to 30%.
“In South Africa, consumers can expect notable retail price increases, passed on by importers, distributors and retailers.”
Kan adds that the costs of key components − including memory, CPUs, solid-state drives and graphics cards − have already risen substantially and are expected to continue increasing until 2027, after which prices should stabilise, followed by gradual declines.
“The improved USD/ZAR exchange has helped to buffer against the increases in pricing, but not enough to completely nullify it. Shortages and cost increases are across all major components, not just memory. Entry-level components are the worst effected with almost no supply at all.”
He believes the broader implications may include delayed product launches, downgraded specifications in some models and higher overall technology costs in South Africa.
“If planning purchases – particularly entry-level PCs, laptops, tablets, or upgrades involving RAM/SSDs – consider acting sooner while monitoring local availability and deals,” he urges.
For local businesses, the industry players say the combination of higher prices and uncertain availability could complicate IT budgeting and procurement planning over the next 12 to 24 months, while consumers may face fewer promotional deals and longer waiting times for certain models.
While distributors expect supply conditions to eventually stabilise as new semiconductor capacity comes online globally, they say the near-term outlook suggests continued volatility, with the South African channel preparing for a period of tighter margins, cautious ordering and more complex customer expectation.
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