Saturday, July 13, 2024

Smartphone Dealers in Kenya closing Shops on Supply Shortage as Cartels take over

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Samsung has expressed optimism that the device shortage witnessed in the country will ease once the government realigns the whole tax system.

The electronics manufacturer has been on an expansion spree in the local market despite the continued challenges that smartphone dealers have had to endure.

Samsung opened its 3rd store this year and 19th experience store for the company in Kenya at Hurlingham Nairobi.

The shortage has been so intense forcing phone companies operating in the country, to slash their sales projection for this year as the reality of new taxes dawns on them.

The director of Mobile experience at Samsung East Africa Charles Kimari, has earlier confirmed to the Star that the country has been experiencing delays in delivery of smartphones compared to regional countries.

“We believe in providing our customers with access to the latest technology, and this new store will serve as a hub for innovation, education, and exceptional customer service to cater to our customers” said Kimari.

Despite a 50percent surge in the pre-orders with a strong incline towards the Foldable devices, Samsung says its distributors and dealers are working towards compliance.

He added that even though the brand has seen a strong demand on the Flagship devices, entry level models have been the most affected as the demand is quite high.

Smartphone dealership firm Jaikom enterprises, chief executive officer Simon Kariithi pointed out that the new taxation system will bring order on the device shipment entering the country.

“The challenges related to importation of phones and other electronic devices were very fragmented and not organised. I believe the government is trying its best to try and organise the business in detecting problems especially when such a matter is happening,” said Kariithi.

Samuel Musila
Samuel Musila
Passionate Software Developer and Tech content creator From Nairobi, Kenya

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