Prices Electronics

[toongeorges]

I was in Abasto today and also checking the prices of electronics out of curiosity. Things seem to be more expensive here, but I could not make a clear comparison, because the laptops and cellphones also have lower specifications than the ones I am looking at at home. Though for one phone, the Sony Xperia Z3, I know the price at home.

Here it is 16999 pesos. In Belgium, it can be found for less than 500 euro or 8000 pesos including 21% VAT.

Are all electronics more than twice as expensive as should be?

Maybe the Kirchneristas on this forum have an explanation why that would be a good thing.

 

[Gringoboy]

They never used to be in many areas.
For example, computer parts such as hard drives etc were very much on a par with the UK and US, but that was when the dollar was 3-4 pesos.

 

[ElQueso]

You don't have to ask the Kirchneristas why. They tell us all the time (not jsut those on the forum). They are trying to make Argentine industry produce things the rest of the world does by creating an economic climate that makes it extraordinarily pricey and difficult to import things. Cristina has said it a few years ago, that her goal was to produce everything here that could possibly be produced. I remember specifically a speech she gave at the opening of a Mabe factory.

They want to make everything perfect for the worker without worrying at all about businesses (or at least, big businesses, which are usually the ones that invest in factories and such), because out of the goodness of their hearts. those who run businesses should make sure the worker has everything he or she needs, whether they work hard for what they get or not.

Todos y todas incluidos. At least they got one thing right - todos y todas son incluidos in the inflation and other restrictions, although the funny thing is that it hurts the very people that they are "trying to help" more than it hurts those who they consider to be "evil" or "unpatriotic" or what-have-you.

But gee guys, Argentina has less poverty than Germany. FpV and Cristina don't lie about anything. It's just a matter of time until their policies create paradise.

BTW - apart from some peripherals related to PCs, since I've been here, I never noticed compatible prices on PC stuff. Last time I rebuilt a PC (before I recently bought parts from the US on my last trip and brought them with me) was about 5 years ago. I couldn't find anything at a reasonable price that wasn't at least a couple of years out of date. I've always seen, for what I consider the import things related to a PC (CPU, motherboard, graphics card) either way more expensive for something close to current, or a comparable price to the US but at least a couple of years out of date. It could be that I wasn't shopping at the right places.

But with electronics, it has sure as hell gotten worse over the last 2-3 years, progressively so. Except for the few things they produce (er, assemble) here Fuerza Cristina!.

 

[Rich One]

Electronic parts are imported transported to Tierra del Fuego assembled and then transported back to Capital (Cellus ,Notebooks , etc) this local industry employs thousands and need to be protected by hefty import Taxes.

 

[EJLarson]

BTW - apart from some peripherals related to PCs, since I've been here, I never noticed compatible prices on PC stuff. Last time I rebuilt a PC (before I recently bought parts from the US on my last trip and brought them with me) was about 5 years ago. I couldn't find anything at a reasonable price that wasn't at least a couple of years out of date. I've always seen, for what I consider the import things related to a PC (CPU, motherboard, graphics card) either way more expensive for something close to current, or a comparable price to the US but at least a couple of years out of date. It could be that I wasn't shopping at the right places.

But with electronics, it has sure as hell gotten worse over the last 2-3 years, progressively so. Except for the few things they produce (er, assemble) here Fuerza Cristina!.

Re the assembly: I heard (but have no proof) that some law mandated a certain amount of fabrication/assembly be done here in Argentina or the item couldn't be sold, or was more heavily taxed or something like that. The Argentines solved the problem by shipping the items to Patagonia and just reboxing them. Is this true?

Edit: Rich One's post appeared as I posted this. Do they really do assembly there or is that just a scam, too?

A friend came by with her new laptop last week and I helped her get Skype loaded and running. The PC was really just a Chinese piece of crap. Didn't even have a light for caps shift-lock. She said she paid AR$12,000. I'd be surprised if it would even cost US$500 in the States.

 

[rrptownley]

Yes, it's a protectionism policy.

It's part of the great Peronist dream to have an independent yet world-leading national industry base. Said dream is will remain as such as, I personally feel, Argentina is just not capable of competing with the size of China nor the innovation from countries like Europe and the States.
There are some great innovations and industries from Argentina, and the Kirchners have increased funding for the sciences, but its hard to see if there is really any improvement in the national industry other than the hand-picked chaps in white coats smiling and waving at Cristina on the cadena nacional tele-link from their government-paid-for labs.

I can understand why a government would look to foster industrial independence but as the country and the people stand, Argentina isn't the right environment for internationally competitive industry. Under protectionist policies the national producers become lazier, less efficient, rather than improve themselves and their products.

I really believe Argentina should focus on what it does excel at: agriculture. It reminds me of an analogy from an excellent book, A Splendid Exchange by William J. Bernstein, where the author tries to explain how protectionism and a broad industry base doesn't really serve a country's best interests:

 

[EJLarson]

Yes, it's a protectionism policy...

Whoa! Bajo makes furniture, too? Who knew?

 

[glasgowjohn]

Electronic parts are imported transported to Tierra del Fuego assembled and then transported back to Capital (Cellus ,Notebooks , etc) this local industry employs thousands and need to be protected by hefty import Taxes.

I keep on hearing stories that the assembly business in TDF is all a big con.

Apparently , at least according to some friends who claim to know, the majority of the factories import merchandise manufactured in Korea and neighboring countries , open the boxes and stick on a stamp saying made in TDF . The boxes are then closed and shipped up to Bs As for onward distribution.

This couldnt possible be true...

Or could it?

 

[toongeorges]

Yes, it's a protectionism policy.

It's part of the great Peronist dream to have an independent yet world-leading national industry base. Said dream is will remain as such as, I personally feel, Argentina is just not capable of competing with the size of China nor the innovation from countries like Europe and the States.
There are some great innovations and industries from Argentina, and the Kirchners have increased funding for the sciences, but its hard to see if there is really any improvement in the national industry other than the hand-picked chaps in white coats smiling and waving at Cristina on the cadena nacional tele-link from their government-paid-for labs.

I can understand why a government would look to foster industrial independence but as the country and the people stand, Argentina isn't the right environment for internationally competitive industry. Under protectionist policies the national producers become lazier, less efficient, rather than improve themselves and their products.

I really believe Argentina should focus on what it does excel at: agriculture.
...

I think your explanation makes sense.

I see 2 issues with the idea of making a world leading Argentine industry:
1. Argentina does not have the scale of the rest of the world.
2. The workforce here simply is not as well educated as in other parts of the world.

For Argentina to become a world leading industry, it should focus on its strengths, e.g. agriculture and it should invest in educating people to stay ahead. Now it seems, Argentina is only trying to catch up.

 

[Rich One]

I keep on hearing stories that the assembly business in TDF is all a big con.

Apparently , at least according to some friends who claim to know, the majority of the factories import merchandise manufactured in Korea and neighboring countries , open the boxes and stick on a stamp saying made in TDF . The boxes are then closed and shipped up to Bs As for onward distribution.

This couldnt possible be true...

Or could it?

Who knows ??? As I hear it varies depending from item to item ....there is a 15 % local components, the manuals, boxes and packing foam