Sharp rise in prices of smartphones burdens consumers in Karachi

• Average cost of mobile phone with 4GB RAM and 64GB storage has risen to around Rs40,000 compared to Rs22,000 a few months ago • Dealers say while govt taxes have not increased significantly, rising cost of chips is affecting rates of new handsets • Market survey shows lower, middle-income groups hit hardest • Consumers say abrupt price hike hampers connectivity in digital age KARACHI: A sharp rise in mobile phone prices in the city has made new smartphones almost unaffordable for a large number of consumers as all major mobile phone brands have increased prices by Rs15,000 to Rs30,000 per handset. The increase has hit particularly hard those who could previously afford “budget smartphones”. The budget smartphone can be described as a device with bare minimum features needed to function reliably for daily essentials, such as 4GB of RAM and 64GB of storage.

While it used to cost around Rs20,000 until last year, it is now priced above Rs30,000, and, therefore, has gone out of reach for many. Consumers wonder why the prices have gone up so much. Some think it is because of the taxes imposed by the government while others say it is so because of the US-Iran war that has affected international trade and, with that, export of mobile phone components. For a vast majority, education, work, online transport services, banking, government services and communication with family members are linked to smartphones and, therefore, having a reliable phone is essential. Due to a steep hike in prices, a large number of buyers have no option but to buy used phones available on the market or kit phones, which are refurbished sets imported in bulk without retail packaging to avoid heavy customs duties. However, many believe that used or kit phones do not offer the same reliability which a…