Recession still dominates mobile market, prices likely to increase by 20%

Mobile market activists have said that the mobile market is facing a situation of stagnation as the price is likely to increase by 15 to 20 percent after the liberalization of the exchange rate of the EGP against the US dollar.

However, import documentary credits will reflect positively on production requirements in light of the presence of several companies manufacturing mobile devices locally.

Mohammad Al-Mahdi, a former agent of the General Federation of Commerce’s mobile division and a leading mobile dealer, said that for the past few weeks, buying and selling in the mobile market has almost stopped.

Despite the stability in the market due to the liberalization of EGP, he estimates that the price of mobile devices will increase by 15 to 20 percent.

Furthermore, Al-Mahdi believes that the availability of products offered from mobile devices will increase in the coming period thanks to the decisions to cancel the need to open documentary credits for imports.

Also Read :  China markets fall as protests erupt over Covid lockdowns

In addition, he said, the used phone market has slowed down due to the decline in consumer purchasing power and the restructuring of priorities as well as the decline in the rate of demand for maintenance services. Lack of availability of all spare parts, especially screens, which are the most expensive part in maintenance works.

The proliferation of locally manufactured mobile phones is believed to contribute to the price reduction and stabilization of some mobile devices, which may boost sales in the market.

Locally manufactured phones are beginning to enter the Egyptian market, including A-series phones for Samsung and traditional feature phones from Nokia, which are being produced in Itisal’s factories, as well as phones from China’s Vivo.

Furthermore, an agreement has been signed between Oppo and the Egyptian government to start manufacturing its products in Egypt and the company is currently working on finding a suitable location to build its factory.

Also Read :  Is the metaverse really the future of work?

Last Thursday, the Central Bank of Egypt (CBE) issued a package of extraordinary decisions that included raising interest rates by 2%, completely canceling documentary credits this December and setting the exchange rate of the pound according to supply and demand. Flexible exchange system.

The price of the USD against the EGP at the end of Thursday was around EGP 23.

Karim Ghonem, head of the Cairo Chamber of Commerce’s digital economy division, said exchange rate liberalization would help curb the parallel market and the government’s agreement with the IMF would contribute to availability. Foreign currencies, which support imports and the introduction of many goods in the Egyptian market, especially production needs, and thus the market will no longer lack mobile devices.

Ghonem said that due to the interest of many big companies to produce in the country, there will be a big change in the mobile market in the coming period.

Also Read :  Janet Yellen: Treasury secretary says she's not seeing signs of a recession in the US economy

In addition, Ghonem believes that the final elimination of the need to open import documentary credits at the end of the year will promote production requirements and greater availability of production components, which will allow mobile companies to produce their products more efficiently, which will eventually trigger a gradual decline. in prices.

In the past six months, many importers and manufacturers have complained that their business has been suspended due to banks’ inability to get US dollars to finance their goods and exit ports.

The CBE in its extraordinary rulings last Thursday decided to phase out the directives issued on 13 February 2022 regarding the use of documentary credits in import financing operations, promising their complete repeal this December.


Leave a Reply

Your email address will not be published.

Related Articles

Back to top button