Asbis will soon become the second official Apple distributor in South Africa. This comes after Core Group has held exclusivity over Apple products for over two decades.
Asbis is quite a large company already. It is the official distributor of Apple products across various countries with 27 so-called “iSpace” stores that act as authorised locations for Apple products. The company employs 2,500 people and serves over 20,000 B2B customers across 60 countries.
The company says it is ready to take on South Africa and its surrounding areas. The head office, which is based in Johannesburg will extend operations into South Africa and the rest of Africa. The company already distributes a number of brands including Seagate, Logitech and Bang & Olufsen.
Asbis recently extended its warehouse space in Johannesburg in anticipation of this Apple contract. The company now operates out of a new state-of-the-art 3,000-square-meter distribution centre. According to Asbis, this will ensure swift and efficient delivery of all products across the region.
The company has also launched its Apple reseller program and is currently signing up stores that would like to take on the product range. Of course, this aligns with Core Group’s current hold on the market.
Core Group has been the sole distributor for Apple products and has been accused of inflating prices across various products. Even its previous price hikes have seen products skyrocket by R10.500 overnight.
Update – Core Group has since released a statement regarding the distribution of Apple products in South Africa saying:
Core is the leading distributor of Apple products in South Africa and has been the consistent presence supporting Apple resellers and customers in South Africa for more than 30 years.
Apple has a multi-distribution approach in all markets in which it operates, including South Africa, where it has had four distribution partners operating in South Africa since the launch of the iPhone in the market in 2008.
Core has developed a unique value-added distribution model that supports not only retail channel partners but also its growing reseller partner program, increasing access to Apple products to businesses. The Group also brings other leading brands to the market, such as Nintendo, DJI, MOOV and Beats. Currently, Core serves business and retail partners in Angola, Botswana, Lesotho, Malawi, Mozambique, Namibia, Nigeria, South Africa, Zambia and Zimbabwe.
Core CEO Dian de la Port says as the market evolves, the company’s extensive distribution and logistics network alongside its value-added services, are well positioned to ensure the continued success of its partners.
“Our all-encompassing partner offering includes innovative supply chain and channel management, retail support, enterprise sales, marketing and media relations. As the market continues to evolve, our extensive distribution and logistics network and value-added services, are well-positioned to ensure continued success for our partners.”
Asbis’ entry into the market will definitely put pressure on Core Group and its pricing policies. Multiple distributors mean more competitive prices and stores will now be able to offer better prices to customers. It will be an interesting year ahead as these two Apple distributors fight for market share. We’ll have to see how prices are affected when new products are announced.
Apple is expected to host a May event next month with new iPad product drops. I am not sure when Asbis will kick off the distribution of these products but I will keep an eye out for movement.
Update – 25 April – 08:20: Added the official statement from Core Group / retracted comment regarding marketing spend – PR says Core Group has not made any comment regarding inflated prices.
Source: My Broadband
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