Mobile phone prices in Egypt have jumped by as much as 20% this week as manufacturers pass on a massive surge in global component costs, Federation of Egyptian Chambers of Commerce’s Mobile Division head Mohamed Talaat tells EnterpriseAM. In response to a 50% rise in the cost of local production inputs since the start of the year, brands including Vivo (up 17%), Oppo (up 15%), and Samsung (up 5%) have updated their price lists, we were told.

This isn’t just about local inflation, it’s the result of AI’s expanding need for chips. Manufacturers in Taiwan and South Korea are aggressively shifting production capacity toward high-margin chips used in AI data center servers. This has starved the consumer electronics market of smaller semiconductors and memory chips, driving global prices for these components up.

And what it’s certainly not about is reacting to reduced competition from the recent ending of customs-free phone import exemptions for individuals, Talaat said. But many will be wishing the exemption still existed, with handsets that sell locally for around EGP 45k, priced at no more than EGP 27k in the Gulf, we were told. For iPhones, the difference is even greater with models in Egypt going EGP 98k, going for nearly half that at EGP 57k in Gulf, which a separate source told us was supported by a EGP 10k price rise for the Apple devices as distributors have a limited supply ahead of the release of a new model.

What’s next? The finance and CIT ministries in partnership with several companies are planning to introduce installment plans for customs fees on imported phones, we were told.

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