Sales of locally made mobile phones in Egypt have declined by 20% since the start of 2026, according to Mohamed Talaat, head of the Telecommunications and Mobile Phones Division at the Federation of Chambers of Commerce. The shortage of key components, particularly mobile chips, has led to higher phone prices and reduced purchasing power. This has significantly impacted the local production of mobile phones.
The shortage of mobile chips is attributed to global chip providers scaling back their production of mobile RAM and internal storage chips. They are shifting their focus to chips and materials needed for artificial intelligence (AI). As a result, Egypt has produced only 10 million mobile devices since the beginning of the year, falling short of this year's target of 15 million units.
In 2025, Egypt produced 10 million mobile devices, a significant increase from 3.3 million devices produced the year before. The country has been making efforts to localize its electronics industry as part of a broader push to expand domestic manufacturing capacity. However, locally made mobile phone prices have risen by around 55% overall, increasing by five to seven percent every 10 to 15 days since the beginning of 2026.
The price hike has made locally made mobile phones less affordable for consumers. The cheapest locally made mobile phone in Egypt now costs around EGP 7,000, compared to EGP 4,500 at the start of 2026. The most expensive locally made phones cost up to around EGP 60,000, while imported phones can cost up to EGP 100,000, subject to additional customs duties of between 38.5 and 40%.
Despite the decline in locally made mobile phone sales, mobile phone subscriptions in Egypt have seen a year-on-year increase of 10.4% to 127.89 million by the end of June 2026, from 117.52 million in June 2025. This growth is attributed to Egypt's four mobile operators heavily investing in 5G infrastructure, while the government expands its spectrum capacity, mobile towers, and fibre-optic networks.
The Egyptian government is seeking more investment in telecommunications, outsourcing, artificial intelligence, and digital services to boost growth in the country's information and communications technology (ICT) sector. The ICT sector has become the fastest-growing economic contributor to the Egyptian economy, doubling its share of GDP from 3.2 to six percent over the past seven years.
According to Mohamed Talaat, prices of locally made mobile phones "will continue to rise until the start of 2027". The industry is facing significant challenges due to the shortage of key components and the shift in focus of global chip providers. The Egyptian government and local manufacturers will need to address these challenges to revive the local mobile phone industry.
Key points
- Egypt's locally made mobile phone sales fell 20% in 2026 due to a shortage of key components.
- The shortage of mobile chips has led to higher phone prices and reduced purchasing power.
- Mobile phone subscriptions in Egypt have seen a year-on-year increase of 10.4% to 127.89 million by the end of June 2026.
