The long awaited Apple smart watch range will go on sale in South Africa on October 23. However, people are interested in their pricing.
The official distributor for Apple products in South Africa, Core Group, on Friday revealed recommended pricing for the Watch range which will be on sale in the iStore, Digicape and Incredible Connection stores.
Pricing is expected to range from R5 899 for the 38mm Apple Watch with a silver aluminium case and white sport band to R18 499 for the 42mm version with a space black stainless steel case and link bracelet.
Local pricing is higher than the prices advertised in the US on Apple’s official website.
The 38mm Apple Watch with the silver aluminium case, for example, is advertised at $349 (R4 651) in the US whereas Core Group has recommended retail pricing of R5 899 ($442) for the same product.
In another example, Core Group has recommended retail pricing of R9 999 ($751) for a 42mm Apple Watch with a stainless steel case and a red sport band. On the Apple.com website, this same device is advertised for $599 (R7 968.50).
When asked by Fin24, Core Group said that there is a perceived difference between pricing in South Africa and the United States, with regards to the importing of Apple products by Core Group. They said that US prices are quoted online exclusive of any sales tax, therefore, as a starting point, you immediately need to deduct 14% VAT for the price in South Africa. They also said that certain of our products attract ad valorem and import duties, like iPods that attract 25% duties.
Core Group also pointed to the fluctuation in the rand-dollar exchange rate as having a negative impact on pricing. It explained to Fin24 that it has entered into foreign exchange contracts (FECs) which result in pricing being locked in a fixed rate valid for a particular period of time.