The Egyptian mobile market is suffering from the effects of the flotation of the Egyptian pound and the devaluation of the national currency against the US dollar, which hiked the prices of mobile phones. Prior to the flotation, the most expensive phone in Egypt sold at EGP 6,000; after the flotation, that jumped to EGP 14,000.
Although the market suffers from economic conditions and high rates of inflation, mobile manufacturers still see promising opportunities for growth in the Egyptian market. Companies believe that the introduction of the 4G service is considered an investment opportunity, next to the lack of spread of smartphones among all segments of society.
This is in addition to the efforts many companies do to catch up with the initiative launched by President Abdel Fattah Al-Sisi two years ago for electronic manufacturing. Many companies rushed to conclude contracts with Silicon Waha Company to reserve a place in the new technological parks.
This comes along the trend of many Chinese companies to expand in the Egyptian market. The latest of these companies is Xiaomi, which entered the Egyptian market this year. A recent report by GFK stated that sales in the Egyptian mobile market are expected to drop to 10 million devices this year, down from 12 million in 2016. Yet, the report expects the market to catch pace again in the beginning of 2018.