KARACHI: The ripple effect of continuous hikes in petroleum products has now hit Pakistan’s mobile phone industry. Several leading smartphone manufacturers have announced a price increase ranging from Rs. 3,000 to Rs. 5,000 per unit.
Production Costs vs. Consumer Demand
Companies justify the hike by citing increased production and logistics costs. As fuel becomes more expensive, the cost of transporting goods and operating assembly plants has surged. However, this move has immediate consequences for the market:
- Sales Slump: Dealers report a significant drop in footfall. Retailers who previously sold 10–12 units daily are now struggling as buyers become increasingly cautious.
- Accessories Get Expensive: It’s not just the phones—essentials like hands-free sets, mobile covers, and screen protectors have also seen a price jump.
The Traders’ Stance
The trading community warns that the rise in petroleum prices creates a domino effect. High transport costs lead to higher retail prices, which ultimately stifles business activity. Traders urge the government to intervene, fearing a total stagnation of the tech market if fuel prices aren’t stabilised.
