Apple pricing warning in South Africa

Asbis is set to become South Africa’s second official Apple distributor, but Core Group says its addition will have little impact on the prices of Apple products in the country.

MyBroadband asked Core if adding a distributor would lead to more competitive pricing and what it would mean for availability.

Core noted that it is already one of four distributors in South Africa that Apple has approved.

“We currently operate in a highly competitive market environment, with major South African telcos also importing and distributing Apple products,” it said.

“South African Apple pricing is largely determined by Apple’s regional pricing, exchange rates and import duties.”

This is despite it previously saying a more competitive market could see resellers negotiate for better prices, in which case it said its margins would shrink.

In late April 2024, MyBroadband reported that Asbis would become the country’s second official Apple distributor, ending Core’s two-decade monopoly in the space.

The company has subsidiaries in 30 nations, employs 2,500 people, and serves 20,000 business-to-business customers in 60 countries.

Asbis is the official Apple distributor in eleven former Commonwealth of Independent States countries.

It operates 27 iSpace stores in these countries, which act as an authorised Apple distributor.

Its iSpace stores are mono-brand, offering only Apple products, similar to Apple’s first-party stores found worldwide.

Asbis South Africa’s head office is located in Johannesburg, and its operations extend to the southern, northern, and eastern parts of the continent.

“Whether you are based in Johannesburg, Cape Town, Gaborone, or even Accra, we will deliver to you,” it says.

The company recently announced that it had expanded its warehouse space in Johannesburg to a 3,000-square-metre high-tech distribution centre.

“Asbis Africa ensures swift and efficient delivery of all products, enabling customers to access cutting-edge technology without delay,” it said.

Its portfolio comprises several well-known brands, including Logitech, Ubiquiti, Bang & Ulofsen, and Seagate.

The addition of Apple to the portfolio will likely provide a significant boost, as the country has many loyal Apple customers.

Core Group has been a distributor of Apple products in South Africa since 1995.

The distributor lists its main brands as Apple, Nintendo, and DJI. However, it has a long list of what it calls “third-party brands”.

These include Anker, Belkin, Bose, Denon, Epson, Harman Kardon, Incase, JBL, LaCie, Lego, SteelSeries, and Yoco.

As the sole distributor of Apple products in South Africa, it has been accused of inflating prices in the past.

However, the company dismissed these concerns, saying South African consumers didn’t take import duties, forward cover, and other costs into account when comparing pricing.

It also said its monopoly on Apple product distribution was good for the tech giant as it provides the funds required for marketing.