Raya to sell Nokia smartphones with Android OS in Q2 of 2017

Raya Trade plans to expand its instalment sales sector at Raya Mega Store, as well as increasing sales via e-commerce in 2017. According to Bassem Mogahed, CEO of Raya Trade, affiliated to Raya Holding, the company will focus on increasing its revenues in US dollars through the expansion of call centre and maintenance services in the African market in 2017.
Mogahed believes that mobile phone sales in 2016 will not differ from the 17m devices sold in 2015.

How do you evaluate the company's performance during 2016? What are your expectations for 2017?

This year was one of the toughest years in terms of investment; however, the company will achieve its financial targets by the end of the year, based on the current performance indicators. The sales growth is expected to reach 25% by the end of 2016, compared to last year, due to the high inflation rates in 2016, increasing the devices' prices in Egyptian pounds. Additionally, consumption rates did not decline as expected in 2016, but they fell significantly during the fourth quarter (Q4). On the other hand, our earnings increased slightly more than our targets, as a result of reducing the profit margin to ease the product price hikes that resulted from the differences in currency exchange rates.

We have concerns over the consumer spending strategies in 2017, given the expected increase of the already high inflation rate by the end of 2016. This will make consumers rearrange their needs and priorities, and reduce spending.