Telecoms report: Sales down 20% as mobile prices rise 55%
Mobile phone prices locally have increased by 55% since the beginning of the year, with gradual rises of up to 7% every 10 to 20 days. This is due to the rising costs of essential components such as RAM and ROM, which are controlled by monopolistic global companies, as well as these companies directing their production towards AI chips that reduce the output of small phones. As a result, the price of the cheapest mobile phone in Egypt has risen to around 7,000 Egyptian pounds, with some local models reaching 50,000 to 60,000 pounds. Additionally, higher customs duties on imports have contributed to the internal iPhone price reaching approximately 100,000 pounds. It is expected that this trend of price increases will continue until 2027, leading to a nearly 20% decline in the Egyptian market sales, a contraction in local production from 18 million to less than 10 million devices, and a shift in consumer behavior towards repairing old phones instead of buying new ones.
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