Iran’s Electronics Imports Persist Amid Sanctions, but Fees and Smuggling Routes Push Costs to New Highs

Tehran, Iran — Shortly after Apple unveiled the iPhone 18 lineup in the United States on September 18, the new models appeared for sale in downtown Tehran within days.

This occurred despite Apple’s lack of a physical presence in Iran, a consequence of long-standing international sanctions, and an ongoing U.S. naval blockade of Iran’s southern ports, historically the primary entry point for the country’s imports.

“These obstacles cannot stop a mobile phone seller,” said a phone and accessories trader at Tehran’s Charsou Mall, a major electronics hub. He spoke to Al Jazeera on condition of anonymity for security reasons.

He explained that importing phones has become significantly more complicated, time-consuming, and expensive, driven by external pressures and domestic restrictions imposed by the Iranian government.

Most internationally manufactured electronics enter Iran via Dubai in the United Arab Emirates. However, the nearly eight-month-long conflict involving Iran, the United States, and Israel has disrupted trade through the Strait of Hormuz. Iran has repeatedly targeted the UAE during the war, and on August 19, the Emirates suspended trade, commercial exchanges, and financial transactions with Iran.

Some traders shifted to couriers arriving from Oman to transport phones and other goods. Yet after U.S. sanctions targeting all Iranian airlines—and any entities servicing them—took effect in September, very few flights are landing in Iran.

“Most phones are now smuggled into the country,” the trader said. “Many pass through Sulaimaniyah in Iraq’s Kurdistan region before entering Iran by land,” referring to the northeastern Iraqi city bordering western Iran.

Similar patterns apply to other electronics available in Iran, including laptops, graphics and processing units, PlayStation consoles, and even Starlink terminals.

This week in Tehran, a 15-inch MacBook Air with an M4 chip sold for the rial equivalent of over $1,450—roughly 6 percent above the average UAE retail price. A 1TB PlayStation 5 Slim disc edition was listed at approximately $730, about 11 percent more than some U.S. retailers.

‘Registration’ Fees and Additional Charges

The situation is even more severe for mobile phones.

Imported devices lose mobile service after 30 days unless a registration fee is paid to the Iranian government.

Introduced nearly a decade ago under the pretense of combating smuggling and corruption, the fee varies by device value. The government levies import duties of up to 6 percent on phones below 600 euros ($673), up to 15 percent on devices between 600 and 900 euros ($673 and $1,010), and up to 30 percent on phones valued above 900 euros.

Once other levies and domestic “warranty” charges are added, extra costs for certain phones can exceed half of the total price.

Even registered phones do not guarantee unfettered internet access, as the government enforces strict online filtering and shutdowns. Global payment methods remain inaccessible to Iranians, and international firms frequently deny services to Iranian nationals due to U.S. sanctions.

According to the state-linked Tasnim news site, roughly $1.6 billion worth of mobile phones were imported commercially during the previous Iranian year ending in March 2026, with up to 20 percent priced above $600. Passengers carried in phones worth $470 million, primarily higher-end models. No reliable figures exist for smuggled devices.

In mid-August, Customs Chief Foroud Asgari told state media that approximately one million phones had been imported during the first five months of the current Iranian year, compared with 3.16 million in the same period a year earlier. He said the import value of phones had fallen by about 70 percent.

The government can suspend phone registration whenever it considers necessary.

That occurred between 2023 and 2024 with newer iPhone models, which authorities said could not be registered under any circumstances because they were manufactured by an American company and depleted foreign currency reserves. Authorities did not object to similarly priced high-end models from other brands.

Skyrocketing government fees and local restrictions are making new phones increasingly unaffordable for Iranian consumers, particularly as the monthly minimum wage and basic subsidies for an average married worker total just $83.

Iran’s currency, the rial, continues its downward spiral, trading at roughly 2.64 million to the U.S. dollar in Tehran on Monday—slightly improved from an all-time low reached earlier this month.

Prices are surging across the board, especially for food and essentials, as domestic mismanagement, war damage, sanctions, and the blockade strain the economy and impoverish much of Iran’s 90-million-strong population.

Afsaneh, a 27-year-old teacher from Tehran, said she has considered replacing her iPhone 13 with last year’s iPhone 17 model but hesitates at the prices.

“The only way to get it is to sell my current phone, use my small savings, and borrow from my parents,” she told Al Jazeera.

She noted that many of her peers and acquaintances are forced to extend the life of old devices through repairs or replacement parts because they cannot afford upgrades.

“A lot of people are one major electronic failure away from serious debt,” she said.

Source link