“An increase of up to approximately 5% is observed in the prices of smartphones, produced by China, in Azerbaijan and the prices may increase much more, as the stock of these products decreases in the market”, member of the Administrative Board of MiMobile Company Jumshud Aliyev told APA-Economics.
According to him, the price rise in the market is speculative by nature at the moment: “As demand remains stable, while supply decreases, most the market participants use the opportunity and raise prices. Although the case has not affected to retail prices yet, it is observed in wholesale prices. Factories suspended production in China since January due to the spread of coronavirus, they are on holiday. Their activity is expected to be restored after February 20. A shortage will appear in the supply of these products until that time and empty stocks receive orders.”
The representative of the company's board added that manufacturers will add to the cost of the product the amount of damage caused to them during the time when they did not work. This means that in the future it is possible to increase prices for both components and finished products.
“Currently, local importers are looking for alternatives, and Indian-made products are already being imported into the country. In particular, these are smartphones manufactured at Xiaomi factories in India. They are inferior in quality to the products of other factories. Buyers should pay attention to this,” Aliyev noted.