• 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
•
asserted
cost → rise → Rs22,000
Dealers say while govt taxes have not increased significantly, rising cost of chips is affecting rates of new handsets
•
asserted
cost → say → handsets
Market survey shows lower, middle-income groups hit hardest
•
asserted
groups → show → ?
Consumers say abrupt price hike hampers connectivity in digital age
KARACHI:
asserted
hike → say → age
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.
asserted
brands → make → handset
The increase has hit particularly hard those who could previously afford “budget smartphones”.
uncertain
who → hit → 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.
asserted
smartphone → describe → 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.
asserted
it → use → many
Consumers wonder why the prices have gone up so much.
asserted
prices → wonder → ?
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.
asserted
that → think → 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.
asserted
having → link → phone
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.
asserted
which → have → duties
However, many believe that used or kit phones do not offer the same reliability which a new smartphone does.
asserted
smartphone → believe → which
Shopkeepers said the unprecedented increase in mobile phone prices had not only made life more difficult for consumers, but had also severely affected their businesses.
asserted
life → say → businesses
One shopkeeper said: “When a phone costing Rs20,000 rises to Rs30,000 or Rs35,000, many consumers can no longer afford it.
asserted
consumers → say → it
Our sales have fallen drastically following the increase in prices.”
asserted
sales → fall → prices
Another shopkeeper said the market was currently facing uncertainty because of continued price fluctuations and a shortage of supply.
asserted
market → say → supply
The ‘reason’ behind price hike
The Karachi Electronics Dealers Association president, Muhammad Rizwan Irfan, said that there had been no significant increase in taxes to affect the price so much.
asserted
president → say → price
He said mobile phone prices had increased mainly due to the rising cost of chips.
asserted
prices → say → chips
Similarly, Mian Abdul Rehman of the Pakistan Mobile Phone Manufacturers Association told Dawn that mobile phones were becoming increasingly expensive mainly because of the rising cost of RAM (random access memory) and ROM (read-only memory).
asserted
phones → tell → RAM
He said demand for memory components had increased significantly with the rapid growth of artificial intelligence (AI) technology, including its use in AI systems and robotics and data centres.
asserted
demand → say → systems
However, their production had not increased at the same pace as consumption.
asserted
production → increase → consumption
“AI companies are buying RAM and ROM at very high prices, which is driving up their cost,” he said.
asserted
he → buy → cost
Mr Rehman said memory device prices had remained relatively stable before the rapid expansion of AI, but the situation had changed with the growing demand from AI-related industries.
asserted
situation → say → industries
He said mobile phone manufacturers were finding it increasingly difficult to absorb the higher cost of memory components.
asserted
it → say → components
“That’s why there has been such a significant increase in mobile phone prices,” he added.
asserted
he → ’ → prices
Consumers seek govt intervention
asserted
Consumers → seek → intervention
Perturbed by the jacked-up prices, consumers Dawn spoke to are calling on the government to take measures to keep smartphones with basic specifications within the reach of ordinary citizens, arguing that access to digital services should not become limited to those who can afford increasingly expensive handsets.
asserted
who → perturb → handsets
They said mobile phones are an essential part of everyday life rather than merely a means of communication or entertainment.
asserted
phones → say → communication
A customer at Sareena Mobile Market in Buffer Zone said phones are a basic necessity in everyday life.
asserted
phones → say → life
“On the one hand, the government talks about a ‘Digital Pakistan’, but on the other, the price of the very device through which ordinary citizens access essential government and other digital services continues to rise,” he said, adding: “The government should take measures to keep the prices of basic smartphones affordable, so that people can access essential government apps and other digital services.”
Another customer suggested that the government enter into an agreement with a mobile phone manufacturer to make basic smartphones available to consumers at affordable prices.
uncertain
smartphones → talk → prices
A man, who had come to Saddar Mobile Market to buy a new phone for his daughter, who just started college, told Dawn that he realised after visiting the market that buying a new smartphone was out of his budget.
asserted
buying → come → budget
“When I came to buy the phone in August, I found that the price of the model I wanted had risen from Rs22,000-Rs23,000 to around Rs30,000.
asserted
I → come → Rs30,000
When I asked the shopkeeper about the increase, he told me that there might be problems with imports, which had pushed up the mobile phone prices.
uncertain
which → ask → prices
“With my salary and the current inflation, I could not afford an additional Rs7,000 to Rs8,000 all at once, so I decided to wait until the following month and save some more money.
uncertain
I → afford → money
But the price has increased further this month.
asserted
price → increase → ?
Now I have only two options: either buy a used smartphone or a keypad mobile phone, because a new smartphone is now beyond my means,” he said.
asserted
he → have → means
A woman at the same market said rising phone prices had forced her to spend money from her savings to buy a new smartphone.
asserted
prices → say → smartphone
“It is my compulsion to purchase a mobile phone at an inflated price as I am a working woman and need a phone in good condition,” she said.
asserted
she → purchase → condition
Speaking to Dawn at North Karachi’s Abdullah Mobile Market near UP Mor, a young man said: “My mobile phone was snatched last night near KDA Chowrangi.
asserted
phone → speak → Chowrangi
…and 3 more, not listed.
The Aporia
