A basic phone with 4GB of RAM (working memory) and 64GB of storage used to cost Rs. 20,000 to Rs. 22,000. It now sells for Rs. 35,000 to Rs. 40,000 in several markets. That is roughly 60 to 100 percent more.

Another phone, priced at Rs. 22,000 to Rs. 23,000 earlier, rose to about Rs. 30,000 in August. It became costlier again in October.

Dealers say sales are falling. Buyers in Saddar, Buffer Zone and North Karachi told Dawn they cannot find affordable phones that run essential apps. Many are looking at used or refurbished phones. Some are choosing basic keypad phones.

Why chips cost more

Karachi Electronics Dealers Association President Muhammad Rizwan Irfan said higher chip costs, not big tax increases, caused the rise.

Mian Abdul Rehman of the Pakistan Mobile Phone Manufacturers Association blamed the rising price of memory chips (RAM and storage). He said AI systems, robotics and data centres now use huge amounts of memory, and production has not kept up. Phone makers find it hard to absorb the extra cost, so shop prices go up.

The problem is global. In December 2025, Counterpoint Research forecast that average phone prices would rise 6.9 percent worldwide in 2026 because of AI-driven chip demand. By June 2026, Apple had raised prices of some MacBooks and iPads by about $300, according to Citizen Digital, saying chip costs had risen quickly.

Options for buyers

Some analysts expect the memory shortage to last until late 2027 or early 2028, according to The Phone Lab, so prices may not fall soon. If you are buying a used phone, check that it is PTA-approved, which means it is registered to work on Pakistani networks.

Consumers have asked the government to keep basic phones affordable. Some suggest a partnership with manufacturers to supply low-cost phones, because banking, education, transport and government services now depend on mobile devices.