ISLAMABAD

Mobile phone prices in Pakistan could rise in the coming months as a global surge in semiconductor and memory chip costs drives up smartphone manufacturing expenses, adding further pressure to an already price-sensitive market.

Industry analysts say the latest increase in chip prices is being fueled by soaring demand for artificial intelligence (AI) infrastructure, which has tightened global supplies of memory components used in smartphones and other consumer electronics. The supply constraints are expected to raise production costs for handset manufacturers worldwide.

The impact is likely to be felt across both premium and budget smartphone segments, with manufacturers expected to pass on at least part of the higher component costs to consumers. Pakistan, where most smartphones are imported or assembled using imported components, could see retail prices rise if global cost pressures persist.

Analysts warn that the cost increases may also affect demand for new devices, particularly in emerging markets where affordability remains a key factor in smartphone adoption. Rising prices could slow handset upgrades and weigh on efforts to expand digital connectivity.

The latest development comes as global semiconductor suppliers grapple with sustained demand from AI data centers, prompting major chipmakers to increase prices and prioritize higher-margin products. Industry observers say the resulting supply imbalance could continue to influence smartphone pricing well into next year.