Smartphone prices have increased sharply in Karachi, with major brands raising handset prices by Rs. 15,000 to Rs. 30,000, making even budget devices increasingly unaffordable for low- and middle-income consumers.
According to a report by Dawn, a basic smartphone with 4GB RAM and 64GB storage, previously available for around Rs. 20,000 to Rs. 22,000, now costs between Rs. 35,000 and Rs. 40,000 in several markets.
The increase has forced many consumers to consider used or refurbished phones, while mobile phone dealers report declining sales and uncertainty caused by fluctuating prices and supply shortages.
Why Are Smartphone Prices Rising?
Karachi Electronics Dealers Association President Muhammad Rizwan Irfan said the increase was primarily driven by higher chip costs rather than any significant rise in government taxes.
Pakistan Mobile Phone Manufacturers Association representative Mian Abdul Rehman attributed the increase to rising prices of RAM and ROM components, driven by growing demand from artificial intelligence (AI) companies.
He explained that the rapid expansion of AI systems, robotics, and data centers had significantly increased demand for memory components, while production had failed to keep pace.
As AI companies purchase memory components at higher prices, smartphone manufacturers are finding it increasingly difficult to absorb the additional costs, resulting in higher retail prices.
Consumers Struggle to Afford Basic Smartphones
Mobile phone dealers in Karachi said the price increases had significantly affected sales, particularly in the budget segment, where customers are highly sensitive to price changes.
Consumers visiting markets in Saddar, Buffer Zone, and North Karachi reported difficulty finding affordable smartphones capable of running essential applications.
A smartphone previously available for Rs. 22,000 to Rs. 23,000 had initially increased to around Rs. 30,000 in August before becoming even more expensive in October.
Consumers have urged the government to introduce measures to keep basic smartphones affordable, arguing that access to digital banking, education, transportation, government services, and communication increasingly depends on reliable mobile devices.
Some buyers have suggested government partnerships with manufacturers to provide low-cost smartphones, while others have been forced to choose between used handsets and basic keypad phones.
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