All major mobile phone brands have raised smartphone prices in Karachi by Rs15,000 to Rs30,000 per handset, leaving new devices unaffordable for many consumers, particularly buyers of budget models.
A budget smartphone, with basic specifications such as 4GB of RAM and 64GB of storage, cost around Rs20,000 until last year. It is now priced above Rs30,000. Some shopkeepers are quoting Rs35,000 to Rs40,000 for phones with similar specifications.
Smartphones are now closely tied to education, work, banking, online transport, government services and family communication. With new handsets unaffordable, many buyers are turning to used phones or kit phones, which are refurbished sets imported in bulk without retail packaging to avoid heavy customs duties. Many consumers consider these less reliable than new devices.
Consumers have attributed the increase to government taxes and to the US-Iran war, which has disrupted international trade and the export of phone components. Traders and manufacturers cited a different cause.
Karachi Electronics Dealers Association President Muhammad Rizwan Irfan said taxes had not risen enough to affect prices so sharply. He said the increase was mainly due to the rising cost of chips.
Mian Abdul Rehman of the Pakistan Mobile Phone Manufacturers Association told Dawn that the cost of RAM and ROM had risen because of rapid growth in artificial intelligence, including AI systems, robotics and data centres.
He said memory production had not kept pace with demand. According to him, memory prices were relatively stable before the AI expansion, and manufacturers are finding it increasingly difficult to absorb the higher costs.
Shopkeepers said the price increase had sharply reduced their sales. One said consumers could no longer afford phones that had risen from Rs20,000 to Rs30,000 or Rs35,000. Another said the market faced uncertainty due to continued price fluctuations and supply shortages.
Consumers interviewed by Dawn called on the government to take measures to keep basic smartphones affordable. They said access to digital services should not be limited to those who can afford costly handsets.
One customer at Sareena Mobile Market in Buffer Zone said the government promotes “Digital Pakistan” while the price of the device needed to access its services keeps rising. Another suggested that the government agree a deal with a manufacturer to supply basic smartphones at affordable prices.
At Saddar Mobile Market, a man shopping for his daughter’s college phone said the model he wanted had risen from Rs22,000–Rs23,000 in August to around Rs30,000, and had increased again the following month. He said he may now buy a used smartphone or a keypad phone.
A working woman at the same market said she had to use her savings to buy a phone. At Abdullah Mobile Market in North Karachi, a young man whose phone was snatched the previous night said he could not find a decent handset for Rs25,000–Rs30,000 and may have to buy a used or keypad phone.