Karachi smartphone prices jump by up to Rs 30,000

Smartphone prices in Karachi have risen by Rs 15,000 to Rs 30,000 across major brands, putting even entry-level handsets out of reach for many low- and middle-income buyers, ProPakistani reported, citing dealers and industry representatives.

A basic phone with 4GB of RAM and 64GB of storage that sold for about Rs 20,000 to Rs 22,000 now costs between Rs 35,000 and Rs 40,000 in several markets, according to the report, which cited Dawn. Prices for the same devices have climbed steadily through the year: ProPakistani reported that a handset previously available for Rs 22,000 to Rs 23,000 had reached roughly Rs 30,000 by August and rose further in October.

Karachi Electronics Dealers Association president Muhammad Rizwan Irfan said the increase was driven mainly by higher chip costs rather than any significant rise in government taxes, according to ProPakistani.

Pakistan Mobile Phone Manufacturers Association representative Mian Abdul Rehman attributed the rise to the cost of RAM and ROM components, which he linked to demand from artificial intelligence companies. He said the expansion of AI systems, robotics and data centres had sharply increased demand for memory components while production had not kept pace, leaving handset makers unable to absorb the extra cost, ProPakistani reported.

Dealers in the city said the higher prices had hit sales, particularly in the budget segment, where buyers are most sensitive to any change. Consumers visiting markets in Saddar, Buffer Zone and North Karachi told the outlet they struggled to find affordable phones capable of running essential applications, and many have turned to used or refurbished sets, or to basic keypad phones.

Some buyers urged the government to take measures to keep basic smartphones within reach, arguing that digital banking, education, transport, government services and everyday communication now depend on a working mobile device. Others suggested government partnerships with manufacturers to supply low-cost handsets.

Bloom Pakistan also reported the price jump of up to Rs 30,000 without additional detail. Neither the government nor the relevant regulators had commented on the increases in the reports available.