Price: $ 1295
BMI View: The rapid depreciation of the South African rand since the start of 2013 poses significant risks to the IT sector. We expect currency weakness to increase the cost of imported IT products and components, such as PCs, laptops, printers and servers. This development, along with downbeat business confidence, weak private consumption and the continuing decline in the sales of PCs, poses downside risks to our outlook for the computer hardware market in South Africa. However, the IT services segment is set to benefit from this currency weakness as the local business process outsourcing (BPO) industry becomes more price-competitive. We have, however, not altered our forecasts for the overall IT market in view of these developments as we expect continued government procurement to offset the like ...
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