The mobile market expects breakthrough after the release of imported shipments during 1Q 2023
According to Daily News, the mobile market awaits a partial breakthrough as the government promises to release all goods stuck at ports. The mobile market has suffered a shortage recently and high prices which affected sales negatively.
The Egyptian market sold about 13 million mobile devices in 2021, according to GFK for market research.
According to Walid Ramadan, Vice President of the Cairo Chamber of Commerce’s Mobile and Communications Division, a drop in mobile device prices is expected in the coming months if imported devices are released from ports.
Ramadan added that there are signs of a partial breakthrough in the mobile market, especially with official statements from the government to release all goods at ports during the coming period.
Ramadan expected a decline of up to 15% in the coming months, supported by the availability of goods in the market again.
The mobile market is experiencing a supply shortage of mobile devices as a result of import restrictions imposed by CBE decisions last March regarding the opening of letters of credit, and most mobile dealers and companies have been unable to enter new shipments to the Egyptian market since the end of last March.
Import restrictions have caused a shortage of devices available in the market and a significant increase in the prices of mobile devices.
Egypt’s imports of mobile phones declined 50.7% to $299.1m during the first four months of last year, compared to $607m in the same period of the year before.
According to Mohamed El Mahdy, former deputy of the Cairo Chamber of Commerce’s Mobile Division, the government prioritizes customs clearance for food and other basic products.
El Mahdy believes that in the event of the release of imported mobile devices, a breakthrough will occur in the market, which suffered greatly in 2022.
A source attributed the significant increase in the prices of mobile devices throughout the year 2022 to the unavailability of mobile devices in the market.
In early January, Prime Minister Mostafa Madbouly announced that the government will announce weekly the imported commodities to be released from ports, emphasizing that all goods will be released within days.
Last December, Madbouly announced the release of $5bn worth of goods from ports. The total value of the imported goods stuck in ports amounted to $15bn.