A number of insiders in the mobile phone and electronics industry expect a 20% to 25% increase in the prices of electronic commodities due to the increase in the value of the dollar and global economic challenges brought about by the Russian-Ukrainian war.
Basem Megahed — the Head of Raya Company for Trade and Distribution — said that the Russian-Ukrainian war negatively affected shipping prices and the availability of products, which has contributed to the rise in the prices of electronics, the increase in the value of the dollar — which is over EGP 18 now — as well as the decision of the Central Bank of Egypt to require opening a documentary credit for imports that has contributed to increasing the import cost for companies and thus increased the period of the capital cycle.
He explained that the market witnessed a significant slowdown in sales during the months of January and February and a slight resurgence in purchases in March. However, it is expected that sales will decline again due to the incoming wave of high prices.
For his part, Walid Ramadan — the Deputy Head of the Mobile and Satellite Division at the Cairo Chamber of Commerce — said that the prices of mobile phones will witness an increase of approximately 13% in new shipments.
He also believes that the mobile market is currently witnessing a period of stagnation in sales that could persist for a while longer, which may reduce the increase in prices, as merchants attempt to sell the devices in their inventory to achieve sufficient liquidity.
