There have been major increase in prices of Smartphone in Nigeria, India, Pakistan and other countries. We are talking about thousands of Naira and Rupees increase. But why will a phone launched with price tag keeps increasing? The answer is exchange rate. Allow me to explain.
Most of the smartphone companies list their phones for sale in dollar. Which simply means a rise in dollar against your currency will also see a rise in the price if those phones and vice versa. But then why not just list phones in local currency?
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I mean, what is the point of bringing a phone to Nigeria and selling it with United States dollar instead of Nigerian Naira? Or launching a phone in India and decide to sell it with United States dollar instead of Indian Rupees?
Note that the situation is similar in other countries like Pakistan, Kenya, Ghana, Indonesia etc.
Well the reason why these smartphone companies decides to sell phones in dollar is to maintain similar prices across all countries. When a phone is listed in USD, it becomes easier for other countries to easily convert to their currency.
This way they in a way maintain order of sales across all countries. Yes, increase in dollar will be bad for most countries but a fall in dollar price will also favour buyers in these countries.
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Recently in Nigeria, Infinix S5 Pro which was sold for N63,500 jumped to N73,900 that is about N10,000 increase within two weeks. Same happened with the recently released Camon 15 series.
Older phones like Infinix S5, Infinix Hot 8, Camon 12 series and itel A56 also saw big increase in price.
So don’t be too mad when you see this increase in prices. At the least take consolation knowing that the situation will favour you if revers was the case.