Hardware sales falling on hard times
Computing hardware retailers are seeing slower growth – and even negative growth – on the back of the economic slow-down, and the declining demand for PC equipment.
Online hardware retailer Prophecy said that they have not seen any growth from 2011 to 2012. “. In fact, we’ve seen about a 10% – 15% drop in sales,” said Prophesy’s Henk Keuris.
“From what we’re hearing from the distributors, many of them are seeing similar drops from 2011 to 2012’s first quarter,” said Keuris.
Keuris said tha,t due to the European financial crisis – where he expect the full effects to only hit South Africa in mid-2012 – he is pessimistic about growth.
“I will therefore be content if we can gain the lost growth back this year, or stay where we are at the moment. So, our current levels – 10% to 15% of last year, will be okay for me, or if we can get that 10% – 15% that we lost from last year back, I’ll be happy,” said Keuris.
Esquire MD, Mahomed Cassim echoes Keuris’ observation, explaining that factors like the current economic situation and the ongoing hard disk drives shortages are bad news for growth.
“From 1999 up until 2010 we saw a growth of almost 30% year-on-year, with the exception of 2011, where we saw a growth of only 18%,” said Cassim.
However, Keuris is more bullish on their medium- and long-term growth. “I do expect growth over the next few years, but I think that it’ll be slow for the next year or two, and then pick up, as long as the European financial crisis can be sorted out,” said Keuris.
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