FOR Apple lovers, a new iPhone is an event. Despite the dubious state of economies globally, the latest iPhone, which became available for sale globally last week, was wildly popular. Long lines outside stores and sold-out preorders worldwide eased worries about the global slump in the smartphone market.

Until last quarter, iPhone sales had dragged down, and recession worries loomed in consumers’ minds. Experts estimate that about 250m, almost a fifth of the 1.2bn global iPhone users, have not upgraded their phones in more than four years that witnessed the pandemic, followed by the Ukraine-Russia war. And now, they plan to get their hands on the new iPhone 15.

Taking the iPhone as a proxy for luxury goods, the resurgence in its popularity indicates that the global economy might be revving up again. The increase in overall consumer demand in the West bodes well for Pakistan’s exports.

At home, the World Bank remains ‘deeply concerned about the economic situation’ in the country. In a sobering forecast, the Asian Development Bank predicted a modest growth of 1.9pc in FY24, whereas it expects the South Asian region to grow at 5.4pc.

In a WhatsApp alumni group of a top Pakistani University, there was a job posting for a country manager of a non-profit fund offering a monthly salary of $2,000. In rupee terms, it would come to roughly Rs600,000. Some websites in Pakistan are offering an iPhone 15 Pro Max at Rs630,000. Thus, even some of the most educated and well-employed in the country would not be able to purchase Apple’s latest high-end mobile.

At Rs32,000, it would take roughly 20 minimum salaries to purchase a single iPhone 15 pro max. In Sri Lanka, the multiple of minimum wages that it would take to buy the highest-end iPhone is the highest regionally.

India and China are popular markets for iPhones. Pakistan does not come on Apple’s radar with its low income per capita. However, in terms of comparison of minimum wages, taking the iPhone 15 as a proxy for luxury goods, Pakistan is actually better off than India and Bangladesh.

Published in Dawn, The Business and Finance Weekly, September 25th, 2023