Mo­bile sales de­cline by 30% com­pared to last year

Mar­ket re­cov­ery in Q2 2018, says Me­ga­hed

The Daily News Egypt - - Business - By Mo­hammed Alaa El din

The do­mes­tic mo­bile mar­ket has ex­pe­ri­enced a strong chal­lenge since the lib­er­al­i­sa­tion of the ex­change rate last Novem­ber, where the mar­ket wit­nessed a sit­u­a­tion of rapid price in­creases dur­ing the past few months and fol­low­ing the flota­tion of the pound.The Cen­tral Bank of Egypt (CBE) had de­cided to lib­er­alise the dol­lar ex­change rate against the pound in Novem­ber 2016,in a strong in­fla­tion wave.

Ac­cord­ing to Bassem Me­ga­hed, CEO of Raya Trad­ing, a sub­sidiary of Raya Hold­ing, the mo­bile mar­ket wit­nessed a sharp de­cline in sales over the past nine months com­pared to the same pe­riod in 2016.

Ac­cord­ing to Me­ga­hed, mo­bile phone sales in Egypt fell by 30% from Jan­uary to Septem­ber com­pared to the same pe­riod in 2016, be­liev­ing the mar­ket would re­cover slightly in the sec­ond quar­ter (Q2) of next year.

In the opinion of Raya’s CEO ,the main rea­son for the sharp de­cline in sales of the mo­bile mar­ket lo­cally is due to the strong wave of in­fla­tion wit­nessed by the mar­ket dur­ing the past pe­riod af­ter the lib­er­al­i­sa­tion of the ex­change rate re­duced the pur­chas­ing power of the Egyp­tian con­sumer, which caused a repri­ori­ti­sa­tion be­tween spend­ing on the ba­sic needs of food, cloth­ing, and drink, and be­tween the ac­qui­si­tion of new phones.

Raya Trad­ing of­fers ex­clu­sive dis­tri­bu­tion ser­vices to some brands, such as Nokia, and other non-ex­clu­sive brands, such as Len­ovo, as well as pro­vid­ing main­te­nance and sales ser­vices for a num­ber of other strong brands in the mo­bile in­dus­try.

Mo­bile man­u­fac­tur­ers in­creased their prices dur­ing the month of Septem­ber last year by 11%, and the sales of the mo­bile mar­ket lo­cally dur­ing the first quar­ter of last year by about 7% com­pared to the same pe­riod of the pre­vi­ous year ac­cord­ing to in­di­ca­tors is­sued by the “Gfk” re­search. Mar­ket sales dur­ing the months of Jan­uary, Fe­bru­ary, and March of last year were 4 mil­lion mo­bile de­vices com­pared to 4.3 mil­lion mo­bile de­vices dur­ing the com­par­a­tive pe­riod of 2015, los­ing about 300 thou­sand de­vices.

Bassem Me­ga­hed, CEO of Raya Trad­ing

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