Year-end blow to smartphone prices: 40 percent hike on the way

Mustafa Kemal Turnacı, President of the Mobile Communication Tools and Information Technologies Businessmen Association (MOBİSAD), which represents 15 thousand points of sale across Turkey, evaluated critical developments in the smartphone market. Agreeing with the forecast by General Mobile Deputy General Manager İlkay Cihaner that "prices will increase by 40 percent by the end of the year," Turnacı stated that global cost increases and difficulties in production processes will be directly reflected in prices. Turnacı said, "This is the expression of a possibility, but current economic indicators support this rise."

Reminding that an average of 11-12 million mobile phones are sold annually in Turkey, Turnacı emphasized that consumer habits have also evolved alongside declining purchasing power. He stated that citizens, who in previous years tended to lean more toward high-technology and upper-segment devices, are now acting according to their budgets, leading to increased interest in "entry-segment" devices in the 20 thousand TL price band.

DEMAND FOR INSTALLMENT REGULATION ON MOBILE PHONES

Pointing out that current financial conditions are straining consumers, Turnacı also expressed his expectations regarding installment limitations. Reminding that the current regulation offers 12 installments for phones under 20 thousand TL and only 3 installments for devices above that amount, the MOBİSAD President said, "Under today's economic conditions, we are requesting that the 20 thousand lira limit be raised to 50 thousand lira. This update is essential to facilitate citizens' access to technology," he said.

Stating that citizens are pulling their needs forward to avoid being exposed to the price hikes, Turnacı added that the upper-income group continues to prefer the newest models that stand out at a global level, regardless of price fluctuations.

News Source: 12punto