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US dollar appreciation against Egyptian pound deepens mobile market losses - Daily News Egypt

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US dollar appreciation against Egyptian pound deepens mobile market losses

Mobile prices also affected by higher shipping costs on back of global pandemic

Egypt’s mobile phone market is facing a new challenge, as prices of some brands have increased, particularly in the lower-priced categories. Several workers in the local mobile market have attributed the price hike to the recent appreciation of the US dollar against the Egyptian pound.

Mohamed Al Mahdi, founder and honorary president of the Communications and Mobile Syndicate, said the prices of smartphones have increased significantly in the past two days, with the pike ranging between EGP 70-150 per unit, in the category of devices priced under EGP 2,000.

Al Mahdi added that the market suffers from weak product demand and supply due to the logistical side-effects of the coronavirus (COVID-19) pandemic. He added that the increase in prices will worsen the conditions in the mobile market, as market sales have significantly decreased to 50%.

A mobile manufacturing company source said that there are some models whose prices increased to accommodate the dollar increase that has occurred in the past few weeks. The source indicated that the increase was mainly in the less expensive devices, while flagship products absorbed the increase affecting the final prices.

Ahmed Abu Ouf, head of Etisal company, said that mobile phone prices have increased due to the US dollar appreciation against the local currency, which has moved significantly during the past few weeks.

The US dollar price has increased from EGP 15.70 in mid-May to its current price of EGP 16.24, a remarkable increase that casts a shadow on the mobile market. This comes particularly on the back of the higher shipping costs due to the ongoing global coronavirus pandemic. 

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