Is this the right time to buy a new phone in Egypt?

SadaNews - Engineer Walid Ramadan, head of the mobile division at the General Union of Chambers of Commerce, stated that the current time is the best time to replace your old phone with a new one for several reasons, the most important of which is the anticipated increase in the costs of electronic chips, in addition to the rise in the prices of memory chips.

Ramadan continued in his conversation with "Al-Arabiya Business" that supply chains have also faced a crisis recently, which negatively affects manufacturing costs and will consequently lead to an expected increase in the prices of smartphones and electronic devices in general.

He explained that it is unclear whether factories will be able to absorb the increase in manufacturing costs without impacting the final product. Therefore, there is no reason to postpone the decision to purchase a new phone, especially since expectations are heading towards price increases, not declines.

Global Decline

A recent report issued by Counterpoint Research projected a 2.1% decline in global smartphone shipments next year due to a shortage of memory chips, which raises costs and negatively impacts production.

This represents a significant shift compared to the estimated increase of 3.3% for 2025, as the influential Hong Kong-based research firm reduced its 2026 growth forecast from a previous slight increase of 0.45%.

The report revealed that the average selling price of mobile phones will rise by 6.9% globally next year, reflecting an increase of between 10% and 25% in the total cost of components.

Look for Artificial Intelligence

The global expansion in artificial intelligence this year has led semiconductor manufacturers to prioritize advanced memory for NVIDIA's accelerator processors at the expense of basic products.

This, in turn, has exacerbated the shortage of dynamic random-access memory (DRAM) crucial for electronic devices, ranging from laptops and electric vehicles to medical and household appliances.

In recent months, consumer electronics companies, including the Chinese Xiaomi, have issued warnings about the likelihood of price increases, while others, such as Lenovo, have begun stockpiling memory in anticipation of rising costs.

Nintendo's shares have also declined throughout most of December amid growing concerns over the impact on its main gaming device, "Switch 2", and its profitability.

Local Manufacturer Competition Tightens the Noose on Companies

Ramadan believes it is difficult to predict the rates of price increases as it depends on the level of stock available to manufacturers, especially since they have learned from the COVID-19 pandemic crisis, which significantly affected supply chains, prompting companies to maintain appropriate stock levels periodically to ensure production does not stop under any circumstances.

He also believes that the fierce competition among smartphone manufacturers in Egypt will keep price increases to a minimum.

Several global companies are manufacturing their smartphones in Egypt, such as: "Samsung - Oppo - Xiaomi - Realme - Vivo - Infinix - HMD".

He anticipated that the first quarter of the current year would reveal the company's plans for increasing the prices of its smartphone products.