ISLAMABAD: Smartphone users in Pakistan are facing rising costs as global memory-chip shortages and the growing demand for AI-enabled devices push handset prices higher.
Leading brands, including Infinix and Tecn,o have already announced price hikes, while others such as Vivo, Realme, Oppo, and Vgotel are expected to follow suit in the coming week.
Industry experts say the increase is largely due to the high cost of memory chips, which have surged 20 to 30 percent globally. According to Muzaffar Paracha, Senior Vice-Chairman of the Pakistan Mobile Phone Manufacturers Association (PMPMA), the memory chips have become costlier, between 20 and 30 per cent, and all of it is imported.
Another PMPMA senior member Amir Allawala notes that almost all mobile manufacturers outside of Apple and Samsung are affected by the shortage. “There are only three key producers of mobile phones — Apple, Samsung and Chinese brands that dominate world markets,” he added.
Rising Costs Linked to AI and Chip Shortages
According to a Dawn report, Zeeshan Miannoor, vice chairman of PMPMA, explained that AI integration in almost all preloaded apps has increased the demand for higher-capacity memory chips.
“Now almost all preloaded apps on phones have AI features, which has led to increased memory requirements for both RAM and ROM,” he said.
Currently, standard smartphones in Pakistan come with a minimum of 4GB RAM and 64GB ROM. However, Taiwanese manufacturers have largely stopped producing 4GB/64GB chips, and the prices of 4GB/128GB chips have risen sharply as production shifts toward 6GB/256GB and 5G-compatible devices.
Naveed Gaba, CEO of Vgotel, added, “As manufacturers shift to higher-capacity memory chips, there is a shortage of lower-capacity chips, while newer ones are more expensive.”
Global Supply Constraints and Broader Demand
The shortage is not limited to the mobile sector. High-grade memory chips are also in demand from defense and industrial sectors, particularly for AI-driven technologies like drones and autonomous systems. Conflicts in 2025 have further highlighted the importance of advanced chipsets for national security applications.
Government Role and Local Production
Industry officials have urged the government to facilitate smartphone affordability and encourage local production. Currently, Pakistan produces around 31 million mobile sets, but nearly 47% are 2G feature phones, as 4G and data services remain limited in remote areas.
Allawala suggested installment-based smartphone sales and greater localisation of components as ways to ease the financial burden on consumers. The upcoming spectrum auction and expanded 4G coverage are expected to increase demand for higher-memory smartphones in underserved regions.
AI Impact
Machine learning experts, believe that integration of AI features in apps is driving higher memory requirements, pushing consumers toward more expensive devices.
Memory Shift
Manufacturers are moving from 4GB/64GB chips to 6GB/256GB 5G-compatible chips, creating a shortage of lower-capacity devices.
Global Context
Taiwan and Japan face limited chip production, affecting mobile, IT, and defense industries worldwide.
Consumer Options
Installment plans and local component production could help reduce costs for Pakistani consumers.
Future Demand
Expansion of 4G networks in rural areas is likely to further increase smartphone demand in Pakistan.
