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Rand strength to cut Apple prices

Paul Vecchiatto
By Paul Vecchiatto, ITWeb Cape Town correspondent
Cape Town, 09 Jun 2009

The strength of the rand against the US dollar in recent months has raised optimism among local Apple resellers that the premium-priced equipment could be in for a significant price drop towards the end of June.

Gaynor MacArthur, a director at Digicape, one of Cape Town's two Apple authorised resellers, says that, while no definite pricing has come through yet, she is optimistic some of the prices could fall by as much as R2 000, or 10% to 12% on some models.

“We haven't received any pricing from [Apple distributor] The Core Group yet, but it looks as though we are in for some substantial price reductions on new equipment,” she says.

The rand was last seen trading at R8.13 to the dollar - a considerable strengthening from the R10.40 to the dollar seen a year ago. The gains made by the local currency have baffled the currency traders and authorities, and even caused SA Reserve governor Tito Mboweni to comment that it is too strong.

However, the price reductions will come at a time when one of Apple's main target markets - the creative sector that includes the film and advertising industry - takes strain due to the downturn in the economy. The film industry has also been hit hard by the fiasco surrounding the South African Broadcasting Corporation's non-payment of locally-produced shows.

“We have seen many clients cut back on capex and are only buying new equipment if absolutely necessary,” MacArthur says.

Alan Goldberg, MD of another Apple centre, Project 3, refuses to speculate on future pricing, but points out Apple's has always been to offer “more bang for the buck with any new release”.

New on the block

Last night, Apple released its new product line-up for the 2009/10 year, which includes upgrades to all its MacBook models and the new iPhone 3G S.

“What I like is that on the higher-end models they have reintroduced FireWire, which is important for high-end video production, especially those cameras that use tape,” Goldberg says.

Goldberg believes many MacBook users do not need FireWire and are happy to download video using the USB ports, but that for professional users the former is necessary.

MacArthur says the FireWire standard installed is 800 and many video cameras need the 400 standard, but that adaptors are available.

News of the new pricing and availability of stock for the new range will be made available within the next two to three days, she says.

service operator Vodacom is due to announce the availability of the next-generation iPhone today. The iPhone 3G S is due to be launched on 19 June in the US, UK, Canada, France and Italy, and country-specific launches are due to take place roughly every seven to 10 days after that.

Vodacom first launched the iPhone in SA in October last year. While it attracted considerable interest, its cash price of about R8 000 was considered to be too rich for local tastes and so it is not in as widespread use as other manufacturers' models.

However, Vodacom spokesperson Nicolene Visser says that, despite the price, the iPhone has proved to be popular and is selling well.

Related story:
Apple upgrades products

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