For this reason.. Expectations of a 20% decrease in cell phone prices in Egypt

Mobile traders expected mobile phone prices in Egypt to see a gradual decline in the coming years, after a number of companies started manufacturing them locally instead of importing them from abroad, raising its prices due to the large volume of duties and customs duties imposed. on it.

A number of mobile companies operating in Egypt, including Infinix, Vivo and Nokia, have recently announced the opening of factories for them to manufacture and sell their products in the local market, instead of exporting them to to import abroad, after the Central Bank imposed restrictions on the import of finished goods, including mobile phones, so as not to drain the country’s dollar resources.

20% Expected Drop in Mobile Phone Prices:

Mohamed Talaat, head of the mobile division in the Cairo Chamber of Commerce, said the move by mobile companies to manufacture their products locally is long overdue, especially as the import bill for the inverter has risen in recent years after it became a necessary commodity. in light of the state’s digital transformation efforts, which have caused a drain on hard currency.

The total value of Egypt’s mobile phone imports in 2021 About one billion and 619 million and 558 thousand dollars, compared to one billion and 754 million and 502 thousand dollars in the previous year, according to the data of the Central Agency for Mobilization and Statistics.

Talaat pointed out that the start of mobile companies manufacturing their products locally will affect the drop in prices by no less than 20%, as this drop stems from the companies’ failure to pay the taxes and customs duties they paid when they import it directly from. abroad, including a 5% development fee and fees You get 5% for the telecom regulator, and 10% for customs duties.

dollar rises

Talaat expected the impact of mobile companies manufacturing their products on lower prices in the local market to appear at least a year ago; So that the factories started importing production inputs, manufacturing them and offering the devices for sale, indicating that the expected drop in prices will be linked to the lack of movement in the dollar’s prices, because any increase in the prices of the dollar against the pound will increase the cost of production inputs imported from abroad, preventing us from benefiting from the resulting positive effects on local manufacturing.

The price of the dollar against the pound has continued to rise since last March, after the Central Bank took a corrective step to reduce the value of the currency by 17% against the dollar, from levels of 15 pounds to 18 pounds fall, and then continued to rise, more than 19 pounds, recording its highest prices in 5 years, which led to an increase in prices Mobile more than 50% in the local market.

Incentives for the mobile phone industry:

Mohamed Hedaya, a member of the mobile division of the Federation of Chambers of Commerce, said the prices of mobile phones are expected to drop with the start of their production locally.

Hedaya indicated, “There are a lot of taxes and customs fees that are supposed to stop being applied when phones are manufactured locally, but so far these fees are still levied on companies that have made local manufacturing in Egypt, which explains the need to approve incentive packages for the mobile phone industry to stimulate more companies to set up factories locally.

Yevo opens a factory on an area of ​​11,000 square meters to manufacture smartphones:

Vivo has announced the opening of its new factory for communication technology specialized in the production of smartphones in the 10th of Ramadan city in Sharkia Governorate, established on an area of ​​11,000 square meters, with investments amounting to $20 million was estimated and reached $30. million within a year.

The factory contributes to the provision of 1,500 jobs within a year, and uses the latest international technologies in production lines and devices for surface mounting, assembly, calibration and testing.

Dr. Amr Talaat visited the factory and highlighted the interest of many international companies working in the field of electronics to expand their investments in Egypt. He emphasized the state’s zeal to develop this important industry in the implementation of the presidential initiative “Egypt makes electronics”, which aims to localize the electronics industry and make it one of the biggest pillars for the growth of the Egyptian economy to make, and points to the state’s efforts to attract more foreign investment and establish global partnerships to provide excellent job opportunities for young people and achieve the government’s vision. In deepening local manufacturing and improving Egypt’s position on the field of electronic design and manufacturing; He pointed out that the new Vivo factory is scheduled to contribute to the transfer of advanced technology specialized in the production of smartphones to the Egyptian market, where it is scheduled to start the stages of manufacturing smartphones by young Egyptians specialized with international technology.

Nokia manufactures its phones locally in collaboration with Etisalat:

Amr Talaat, Minister of Communications and Information Technology, witnessed the signing ceremony of a cooperation agreement between HMD International, the owner of the global brand Nokia, and Etisalat for Advanced Industries (EAI) in Egypt, with the aim of providing one million mobile devices to produce. of different models between traditional feature phones and smartphones. During the current year, production will double in the coming period.

The agreement was signed by Tamer El-Gamal, general manager of HMD in Egypt, and Ahmed Abu Auf, managing director of Etisal Advanced Industries, EAI; In the presence of Alain Lejeune, Chief Operating Officer at HMD Global OY, owner of the Nokia brand, Won Chang, Executive Vice President, Products, Eng. Amr Mahfouz, Executive Director of the Information Technology Industry Development Authority, dr. Hossam Othman, Vice President of the Information Technology Industry Development Authority, and a number of leaders from the Ministry of Communications and Information Technology and my company Etisal for Advanced Industries EAI and HMD

Dr. Amr Talaat emphasized that this agreement is a commitment to the state’s efforts to create a climate that supports the growth of international companies’ investments in Egypt, and it also confirms the government’s zeal to encourage the private sector and to motivate to manufacture within Egypt. factories to transfer knowledge and expertise and localize the electronics industry in a way that contributes to the development of the electronics industry This important industry and the creation of specialized job opportunities for young people in the field of information technology and electronics; He pointed out that Egypt is taking steady steps to deepen local manufacturing in the implementation of the presidential initiative “Egypt Makes Electronics”, which aims to improve Egypt’s position in the field of electronic design and manufacturing.

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