Why the demand of new smartphones has declined in Pakistan?

The devaluation of rupee and new taxes has limited the demand of new smartphones. Read, how this factor is affecting smartphone market in Pakistan in following article.

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new phone prices in pakistan - phonebechdou

Why the demand of new smartphones has declined in Pakistan?

A hike is noticed in used phone prices since taxes are imposed on smartphones

A bird view of imposed taxes on new smartphones

Since the Government of Pakistan has narrowed its boundaries against smuggled new smartphones, a lot of radical steps are being taken to bring this gigantic market in tax circle. For this purpose, where all smuggled phones are being restricted, new taxed have been imposed also. Whether you are bringing a phone from foreign country, or want to buy new phone from local smartphone retailers; you need to pay tax.

As it was obvious that new sanctions and restrictions on mobile industry will bring people to choose what suits best to their budget. So, once again the demand of used phones has increased and prices are sky soaring too.

According to the latest reports, major smartphone manufacturing companies working in Pakistan have seen a visible decline in their revenue as customers are seeking cheap smartphones and they prefer to buy used phone.

What are the reasons behind increasing new smartphones prices?

The biggest reason behind this massive rift we have seen in the smartphone industry is the devaluation of Pakistani rupee. Since the government has failed to comply with local and international trade deficit; the value of a local currency is decreasing day by day. Ultimately, inflation is taking place in every industry. Moreover, the government wants to generate maximum revenue, it is has imposed decent taxes on premium smartphones.

How rupee devaluation has increased the demand of used smartphones?

Major mobile manufacturing companies operating in Pakistan are focusing middle class customers who can easily buy a mid-range new smartphones. Since the price has increased due to the above mentioned factors: new taxes, and local currency devaluation, new smartphone prices have been increased too. So, indirectly, it changed customer’s shift towards used smartphone industry. Now people are preferring to buy cheap used smartphones from local, and online phone buying and selling shops.

Why local used phone markets have increased phone prices?

When a huge number of people were directed towards buying used smartphones, a gap automatically generated between need and production end. Knowing the fact, local used smartphone traders escalated phone prices. Now, if you visit some of the busiest used phone markets in Lahore, you will come to know that a cheap phone has got much attention. To meet the demand, phone prices have been increased, and still there is a flood of people who want to buy used smartphone because these phones have great resale value too.


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