Samsung Faces Pakistan Smartphone Shortage After Winning Debut
By
April 26, 2024
Samsung Electronics Co. is grappling with a shortage of its S24 smartphones in Pakistan due to surging demand for its top-tier phone.
These locally assembled handsets have been highly sought after since their debut earlier this year. Positioned at a higher price point compared to other Samsung models, the scarcity of Galaxy S24 Ultra and other S24 variants underscores the purchasing power of affluent Pakistani consumers. With 192 million mobile phone users, Pakistan ranks as the world’s fifth-most populous nation.
“Samsung Electronics is striving to meet customer demand, and we expect sales to resume shortly,” stated the South Korean company known for its chips, gadgets, and appliances, in an email.
Government incentives have propelled Pakistan’s smartphone industry from primarily importing foreign-made products in 2017 to predominantly assembling handsets domestically. Last year, local and Chinese brands like VGOTEL, Infinix, and Itel produced about 21 million units in Pakistan, while 1.7 million units were imported, as per Pakistan Telecommunication Authority data.
Mobile phone assembly in the country is projected to grow by 30% to 40% this year, according to Muzzaffar Hayat Piracha, CEO of Air Link Communication Ltd., a major mobile phone distributor and assembler for brands including Xiaomi Corp. Pakistan’s mobile companies are emerging from a challenging period after facing operational suspensions last year during import restrictions amid an economic crisis.
The new models are crucial for Samsung to maintain its position as the world’s largest smartphone maker, a title it temporarily lost to Apple Inc. and the iPhone last year, according to IDC.
Although most phone stores in Pakistan still display large posters of the S24 series, they await fresh stock.
In Pakistan, Samsung holds an advantage over Apple due to better pricing and distribution. Since Apple doesn’t engage in local manufacturing, iPhone buyers face import taxes of up to $650, significantly inflating the phone’s official price.
