Economy, Sci & Tech

Digital Sales Hit Record Low

Digital Sales Hit Record Low
Digital Sales Hit Record Low

Sales of digital items gadgets have hit a record low, even as prices fall, said Mehdi Mirmehdi, head of Iran’s IT Union, earlier this week.

“The plunge in prices has forced several in the sector to close their shops and many jobs are at stake,” he said. “They haven’t been able to manage maintenance costs let alone making any profit.”

Mirmehdi said that to repay debts, several in the business have been selling devices at such low prices that they incurred losses, Eghtesad News reported.    

“Most guilds have been enduring these difficult situations in hopes that the post-sanctions era would offer a certain level of relief. However, how far the situation will improve in the upcoming months remains to be seen,” he said.

Iran and six major powers reached a historic deal in Vienna on July 14 to mark the end of a 12-year dispute over Tehran’s nuclear program. The accord will remove sanctions against Iran in exchange for it agreeing to temporary constraints on its nuclear program.  

All economic, financial and banking sanctions on Iran will be terminated the day the deal comes into force. Economists deem that this will result in the local currency gaining value against the US dollar and Iran’s economic situation will also improve.

Mirmehdi noted that if the dollar drops against the rial, local prices for gadgets and gizmos will consequently decline as well.

The picture is the same for online retailers and department stores. In a previous report published by the Financial Tribune, an online electronics dealer said his business losses have been offset by profits from other sources in the past 12 months.  The retailer also mentioned they have a very small margin, as the sales of electronics continue to fall.