Dramatic Drop in iPhone Sales in Pakistan – A Phoneworld Case Study

iPhones have remained the epitome of innovation and a symbol of quality for a long time. Even for some people, it is a symbol of status. However, we have been witnessing that for the past couple of years, the sales of iPhones have been plummeting, especially in Pakistan. There are a number of reasons that have led to the low sales. We will discuss them, but before moving forward, let’s look at some insightful data illustrating the sales of iPhones in the last 3 years.PhoneWorld Research

As clearly evident in the graph, the sales of iPhones have plunged significantly from Jan 22 onwards. It implies that iPhone 12 sales were good in Pakistan and iPhone 13 also posted some good sales in the first couple of months after launch. However, after that period, the sales just continued to decline. You can clearly see that the iPhone 14 sales (launched in Sep 2022) are considerably less than its predecessors. Now, you must be thinking about why iPhone sales have plummeted in this manner.

Here are some of the reasons to justify the downfall.

No New Innovation:

Apple made a significant design change in iPhone 11 pro models by giving a triple camera setup at the rear side. However, since then, we have just been witnessing incremental updates in design as well as performance aspects. The introduction of Dynamic Island can’t be seen as a cutting-edge feature, and probably it’s just an offshoot of the punch-hole design. Furthermore, the introduction of new bionic chipsets improves the performance by a great deal. However, for a normal user, it doesn’t matter much as even the A12 or A13 bionic chips can run all the latest games and apps and don’t lag. It is one of the major reasons why the sales of iPhones have declined.

High Taxes on iPhones in Pakistan:

I’m going to make a startling revelation that may shock you. In December 2021, iPhone 13 and iPhone 12 models were subjected to a tax of PKR 36,800 to PKR 40,500. In the last couple of years, the PTA taxes on iPhones have increased dramatically. Currently, the taxes on these smartphones have reached around PKR 175,000.  Such a significant tax increase has a direct impact on the affordability of iPhones for Pakistani consumers. It often leads to a reduction in demand, and consumers may look for more budget-friendly alternatives.

• Impact on Consumer Behavior:

The sharp increase in taxes can lead to a shift in consumer behavior. Individuals who might have considered buying an iPhone previously may now opt for other brands or models that are not subject to such high taxation.

Parallel Imports and Black Market:

High taxes often create opportunities for parallel imports and the growth of a black market for iPhones. Some consumers may resort to purchasing iPhones through unofficial channels or from overseas, bypassing the high taxes. This can further impact the official sales of iPhones in the country.

No Apple Stores in Pakistan:

Another reason for the low sales of iPhones in Pakistan is the unavailability of official stores of Apple. Though, there are collection points and distributors for Apple, however, an official store would have made a lot of impact on sales. Similarly, users have to search the open market for other Apple accessories which hampers the process of overall sales.