Foreign currency shortage for mobile phone imports

According to the Sedaye Sama News Agency, In recent months, Iran’s mobile phone market has faced a combination of currency instability, stricter import regulations, and disruptions in the foreign currency allocation process. These factors have slowed official imports and increased reliance on alternative channels. The challenges have been so significant that industry players believe the market is practically on the brink of collapse.

Crisis in the Supply Chain

Reports indicate that Iran’s mobile phone market is currently experiencing a severe crisis, almost at the point of bankruptcy. Issues with currency allocation and import streamlining licenses have blocked the import process, creating a crisis in the mobile supply chain. According to Mehdi Asadi, head of the Mobile Importers Association, importers have been waiting more than 400 days for currency allocation. This delay has not only prevented them from completing imports but has also affected companies relying on export-derived currency. As a result, mobile imports have decreased compared to previous years, totaling approximately USD 1.2 billion this year. The private sector, which previously faced no risks from preferential currency, is now confronting strict policies and regulations that create further barriers instead of easing imports.

Hossein Rouzbeh, board member of the Mobile Importers Association, notes that instability in the currency system has left some companies waiting up to 300 days to receive currency. He told Donya-e-Eqtesad: “We are simply trying to cooperate with traders to prevent further tensions, but unfortunately, no institution provides proper support or responses. The currency provision process has become extremely long, and even export-based channels face their own problems. Adjustments are not made, pushing the market toward a near-standstill. The situation worsens daily, leaving no hope for traders.”

A Burden on Consumers

Experts believe that ongoing instability in currency allocation will directly increase phone prices, leading to further price surges in the coming months. Rouzbeh explains: “This situation may raise phone prices in the future. Currently, there are 1,800 companies in the mobile sector, 700 of which are active. If at least 500 of these active companies can obtain currency, make necessary adjustments, and continue imports, products will reach the market at real and fair prices. But when the process is disrupted, imports fall into the hands of a limited number of companies whose methods of obtaining currency and importing goods remain unclear. Naturally, pricing becomes selective and imposed, and final prices do not reach consumers properly.”

Regarding price forecasts for the remaining months of the year, he said: “The current situation does not allow reliable predictions. We wake up to find the dollar up 5–10%. This trend is unpredictable. If it continues, it will undoubtedly affect mobile prices and place far greater pressure on consumers. Purchasing power has nearly collapsed. The market is near collapse, as phones previously costing 2–3 million tomans now cost 14–15 million. If this continues, the situation will worsen, not improve.” He also noted that consumers may turn increasingly to second-hand phones.

Surge in Traveler Imports

In November, customs reports indicated that commercial phone imports fell during the first seven months of the year, while traveler imports saw an unprecedented rise. According to Iranian Customs, 3,355,375 mobile devices worth USD 1.058 billion entered through commercial channels, while 396,713 devices entered via travelers. These changes show that traveler imports are becoming a major channel for mobile entry, whereas previously their role was limited and non-commercial.

Rouzbeh explained: “Traveler imports mainly involve devices over USD 300, often above USD 600. When traders face problems in order registration and currency allocation, some use special methods, such as rented or purchased passports, to import phones. They pay customs fees and leverage their connections, giving traveler-imported phones a market share.”

He believes this type of import negatively affects the market by putting official importers at a disadvantage, reducing their sales, and weakening their competitiveness.

Conclusion

Overall, trends in mobile imports, currency allocation, and market changes indicate that the sector faces multiple challenges affecting official imports and increasing the role of alternative channels. If this continues, it may reshape the market structure and pricing patterns in the coming months.

Source: Donya-e-Eqtes