Smartphone manufacturers in Pakistan

[ghazi52]

China's vivo sets up smartphone production unit in Pakistan

Ali Ahmed
12 Aug 2021

Chinese smartphone manufacturer vivo has set up its first production unit in Pakistan, said Advisor to Prime Minister on Trade and Investment Abdul Razak Dawood.

Dawood, in a series of tweets, congratulated vivo, hailing the development as one that will not only create employment opportunities but also make smartphones more accessible to people across the country.

“I congratulate Vivo Pakistan Mobile on setting up a production unit in Pakistan, which is its first in Pakistan. This is a vindication of the Mobile Phone Manufacturing Policy formulated under the "Make in Pakistan" philosophy’’ he said.

The next step is export of mobile phones manufactured in Pakistan, which will begin in the coming month, he added.


Last year, vivo had announced that it would establish a manufacturing facility in Pakistan.

Just this week, the Pakistan Telecommunication Authority (PTA) issued Mobile Device Manufacturing (MDM) authorisation to Lucky Motor Corporation Limited to manufacture Samsung-branded phones in the country.

“The company had applied for authorisation to set up a mobile device manufacturing plant in Karachi, Pakistan where it will manufacture Samsung brand mobile devices,” said the PTA.

The authority said this is a landmark achievement and “will further revolutionise the vibrant mobile manufacturing ecosystem in the country by ensuring presence of major local and foreign players in the market".

Last month, it was reported that Xiaomi, the second biggest smartphone company in the world, is also planning to set up its assembly unit in Pakistan in the next 3-4 months.

Another Chinese smartphone manufacturer, Realme, announced setting up its smartphone manufacturing plant in Lahore.

Pakistan's young population has become an attractive market for mobile phone manufacturers. However, the push to set up plants in the country comes in tandem with high import and regulatory duties as authorities look to encourage a 'Make in Pakistan' approach.

The government has already stated its intention to promote manufacturing/assembly with the auto sector, smartphone industries being in the spotlight in recent weeks.

 

[ghazi52]

Pakistan to become more self-reliant in handset production: Fitch

• Says entry of global smartphone manufacturers augers well for an import-dependent sector

Ali Ahmed
20 Aug 2021

The entry of global smartphone manufacturers in Pakistan will make the country more self-reliant in the local production of handsets, said Fitch Solutions in report released earlier this week.

The development comes as Chinese smartphone vendor vivo opened its new smartphone manufacturing facility in Pakistan just days ago, with fellow competitors such as Xiaomi and Realme already in line to open up their local manufacturing sites within the next few months.

Fitch said that Pakistan needs to become less dependent on imports and falling total ownership costs (TCOs) for “premium devices will be key to unlocking the full value of the country's fast-growing mobile broadband market”.

Chinese smartphone manufacturer vivo invested $10 million in a plant capable of producing 1 million smartphones per year. While nowhere near meeting total demand, the step marks the country's move towards a 'Made in Pakistan' policy with manufacturing remaining a key component.

“However, with 11 million new mobile subscriptions recorded in 2019 and our robust 4G/5G subscriptions forecasts suggesting rapid device replacement rates over the next decade, vivo's contribution will have only a modest effect on Pakistan's overall handset trade deficit of USD1.02bn (2019 data),” said Fitch.

Fitch was of the view that vivo's decision to manufacture locally, rather than import, is a response to the government hiking import duties and associated certification fees for key categories of complex electronics goods.

“With the country's mobile operators set to rapidly roll out mobile broadband services during the coming decade, being able to keep smartphone average sales prices (ASPs) within the reach of consumers will be paramount,” it said.

Early in August, the Pakistan Telecommunication Authority (PTA) issued Mobile Device Manufacturing (MDM) authorisation to Lucky Motor Corporation Limited to manufacture Samsung-branded phones in the country.

“The company had applied for authorisation to set up a mobile device manufacturing plant in Karachi, Pakistan where it will manufacture Samsung brand mobile devices,” said the PTA.

The authority said this is a landmark achievement and “will further revolutionise the vibrant mobile manufacturing ecosystem in the country by ensuring presence of major local and foreign players in the market".

Meanwhile, other Chinese players Xiaomi and Realme are both in the process of securing MDM authorisations of their own, said Fitch.

The report noted that if each of these upcoming plants are capable of manufacturing 5-6 million handsets yearly, the future demand will be mostly served through local sources.

“We expect annual handset sales volumes to rise from 69.56mn in 2021 to 75.44mn by 2025, with smartphones expected to take an ever-larger share of overall sales as prices fall. A faster fall in handset ASPs, driven by the new local manufacturing initiative, would likely change the scale of these forecasts as more consumers would be able to purchase mid-range and premium devices,” Fitch said.

Pakistan relies heavily on imports for its handset needs with the bill causing a substantial dent in the trade deficit. While the country has embarked on a mission to achieve close to 4-5% growth this year, imports -- needed to bolster it -- are set to rise as well.

Economic policymakers have for long continued to find the balance between the widening deficit and encouraging growth measures.

 

[ghazi52]

The Pakistan Telecommunication Authority (PTA) has issued Mobile Device Manufacturing (MDM) authorisation to Lucky Motor Corporation Limited to manufacture Samsung-branded phones in the country.

The authorisation has been given under the MDM Regulations 2021, a press release issued by the PTA stated.

“The company had applied for authorisation to set up a mobile device manufacturing plant in Karachi, Pakistan where it will manufacture Samsung brand mobile devices,” added the PTA.

The authority said this is a landmark achievement and “will further revolutionise the vibrant mobile manufacturing ecosystem in the country by ensuring presence of major local and foreign players in the market".

The PTA has so far issued MDM authorisations to 25 foreign and local companies for the production of mobile devices (2G/3G/4G) locally. "Mobile devices manufactured by these companies shall not only be sold in the country but will also be exported to other competitive markets of the region and beyond," the PTA added.

Last month, Lucky Motor Corporation (LMC), a subsidiary of Lucky Cement Limited, announced in a notice to the Pakistan Stock Exchange that it has entered into an agreement with Samsung Gulf Electronics Co., FZE (Samsung) for the production of Samsung-branded mobile devices in Pakistan.

The notice added the production facility for producing Samsung mobile devices will be located at LMC’s existing plant facility producing vehicles at Bin Qasim Industrial Park, Special Economic Zone, Port Qasim, Karachi.

The production facility is expected to be completed by end of December 2021.

Market talk suggests the prices of Samsung-branded mobile phones are expected to come down in the range of 15-20% after the manufacturing plant starts distributing locally-made devices.

 

[Pakistansdefender]

Great. Can't wait to buy locally made phones.
Isn't hawawei not coming?
Pakistan should strictly follow the policy and that from 3 to 5 years they have to turn from assembling to manufacturing to producing in pakistan.

 

[ghazi52]

Manufactured in Pakistan: Inovi Telecom starts exporting smartphones

15 Aug 2021

ISLAMABAD: Pakistan Telecom Authority (PTA) Authorization holder Inovi Telecom has started exporting smartphones to other countries. The first consignment of 5500 units of 4G smartphones carrying "Manufactured in Pakistan" tag has been exported to UAE. PTA congratulates the company for this landmark achievement. This is the result of concerted efforts for the development of mobile device manufacturing ecosystem in the country.

The successful implementation of Device Identification Registration and Blocking System (DIRBS) and enabling government policies including the Mobile Manufacturing Policy have created a favourable environment for mobile device manufacturing in Pakistan.

As a part of this policy, Inovi Telecom Pvt Ltd was issued mobile manufacturing authorization by PTA on 9th April 2021. Within 4 months, the company has managed to achieve exporting 'Manufactured in Pakistan' phones.-PR

Copyright Business Recorder, 2021

 

[ghazi52]

Pakistan’s production of mobile phones by local manufacturing plants exceeded the number it imported during January to July 2021.

According to a statement issued by the Pakistan Telecommunication Authority (PTA) the increase in production came on the back of successful implementation of the DIRBS and conducive government policies, including the mobile manufacturing policy, created a favourable environment for mobile device manufacturing in Pakistan

The total production was higher during January-July 2021, when 12.27 million mobile phones were produced locally while the country imported only 8.29 million phones.

 

[ghazi52]

ISLAMABAD: Pakistan imported mobile phones worth $119.234 million during July 2021 compared to $147.999 million during the same month of last year, registering a decline of 19.44 percent, according to the Pakistan Bureau of Statistics (PBS) data.

The overall telecom imports into the country during the period under review (July) 2021 decreased by 10.41 percent by going down from $176.90 million in July 2020 to $158.488 million in July 2021.

On month-on-month basis, the imports of mobile phones into Pakistan decreased by 41.75 percent during July 2021, when compared to $204.677 million imported in June 2021, the PBS data revealed.

On month-on-month basis, the overall telecom imports into the country decreased by 38.15 percent during July 2021, when compared to the imports of $256.255 million in June 2021.

Other apparatus’ imports during July 2021 increased by 35.82 percent and remained $39.254 million compared to $28.902 million in July 2021.

However, other apparatus’ imports declined by 23.89 percent when compared to $51.578 million in June 2021.

However, Adviser on Commerce Abdul Razak Dawood has stated that the government’s target is to bolster exports.

The government wanted to rationalise imports by encouraging local production, he said, adding that local manufacturing of mobile phones has reduced imports of mobile phones.

The adviser said that the imports of the country were high because traditionally Pakistan always relied on trade that was not “Made in Pakistan”.

“Now we are implementing the policy of “Made in Pakistan”,” he added.

The best example of which is that the number of locally-manufactured mobile phones has now exceeded imported phones, he added.

According to the Pakistan Telecommunication Authority (PTA), the production of mobile phones by local manufacturing plants has surpassed the number of mobile phones imports in the country during Jan-July 2021 as the local production was recorded at 12.27 million compared to the imported mobile phones of 8.29 million.

This trend reflects a positive uptake on the PTA’s Mobile Device Manufacturing (MDM) Authorization regulatory regime, whereby, local manufacturing within the first year of regime introduction has resulted in production of 12.27 million phones in a short span of seven months including 4.87 million 4G smart phones.

The successful implementation of Device Identification Registration and Blocking System (DIRBS) along with conducive government policies including the mobile manufacturing policy has created a favourable environment for mobile device manufacturing in Pakistan.

It has also contributed positively to the mobile ecosystem of Pakistan by eliminating counterfeit device market providing a level-playing field for commercial entities and has created trust among consumers due to the formulation of standardised legal channels for all sorts of device imports.

The Government of Pakistan introduced a comprehensive mobile manufacturing policy to encourage and attract manufacturers to establish their units in Pakistan.

 

[Neurath]

Ask Xiaomi to establish manufacturing plants in Pakistan. It's a rapidly growing company and is soon to take what used to be Huawei's place.

 

[Sulman Badshah]

Ask Xiaomi to establish manufacturing plants in Pakistan. It's a rapidly growing company and is soon to take what used to be Huawei's place.

already under development

 

[Pakistan Space Agency]

Pakistan’s production of mobile phones by local manufacturing plants exceeded the number it imported during January to July 2021. ...

This has turned out to be a rather quick success in a very short period of time. Really impressed.

... The total production was higher during January-July 2021, when 12.27 million mobile phones were produced locally while the country imported only 8.29 million phones.

I'm really surprised at the very high volume of production in Pakistan.

From nothing to suddenly 12 million is not a small feat.

 

[ghazi52]

It was reported that Xiaomi, the second biggest smartphone company in the world, is also planning to set up its assembly unit in Pakistan in the next 3-4 months.

Another Chinese smartphone manufacturer, Realme, announced setting up its smartphone manufacturing plant in Lahore.

Pakistan's young population has become an attractive market for mobile phone manufacturers. However, the push to set up plants in the country comes in tandem with high import and regulatory duties as authorities look to encourage a 'Make in Pakistan' approach.

 

[ssethii]

manufacturing more like assembling.
We don't even produce 10% of the stuff that goes inside a cellphone.
At this rate, Pakistan will become the delivery boy for Chinese goods through which we can earn some money but no long-term benefit.

 

[ghazi52]

The PTA in light of the policy issued Mobile Device Manufacturing (MDM) Regulations on 28th January, 2021.

Till now, 26 companies have been issued MDM authorisation enabling them to manufacture mobile devices in Pakistan.

These companies include renowned brands e.g. Samsung, Nokia, Oppo, TECNO, Infinix, Vgotel, and Q-mobile, etc.

Pakistan imported mobile phones worth $2.065 billion during 2020-21 compared to $1.369 billion during 2019-20, showing growth of 50.75 percent.

Due to the introduction of the DIRBS, legal imports have increased significantly and local manufacturing has also picked up.

The government decided to introduce a comprehensive mobile manufacturing policy to encourage and attract mobile manufacturing players to come to Pakistan and establish their plants.

The taxes/duties collected from individual consumers, which prior to the DIRBS was an untapped area for revenue collection, stands at Rs13.93 billion during the period January 2019 to March 2021.

 

[ghazi52]

Mobile phone exports likely to cross $1 bilion

Dawood says ‘Made in Pakistan’ philosophy is only way forward


APP
August 28, 2021

Currently, the gap between local manufacturing and import of mobile phones in Pakistan stands at 12-15%.

ISLAMABAD: Adviser to Prime Minister on Commerce and Investment Abdul Razak Dawood has voiced hope that mobile phone exports will surpass the target of $1 billion owing to incentives given by the government during current fiscal year 2021-22.

Talking to members of the Pakistan Mobile Phone Manufacturers Association, he said that the only way forward was the “Made in Pakistan” philosophy.

According to a statement issued by the Ministry of Commerce on Friday, the aim of the meeting was to discuss export opportunities available to the local manufacturers and assemblers of mobile phones.

The adviser highlighted the incentives offered by the government to the mobile phone industry stakeholders through the Mobile Device Manufacturing Policy 2020.


It was also highlighted that additional incentives had been extended to the mobile phone industry to promote localisation in a bid to generate much-needed growth in job opportunities.
He underlined the importance accorded by the government to the “Made in Pakistan”-led economic growth.
“In order to achieve this, the tariff structure has been rationalised by creating a tariff differential between completely built up (CBU) units and completely knocked down (CKD) and semi-knocked down (SKD) kits,” he said.


The adviser also talked about the incentives given to the exporters through the Export Facilitation Scheme 2021. He stressed the need for scaling up the production capacity so that exportable surplus could be generated.

“Mobile companies should share their investment plans so that procedural hindrances could be addressed immediately,” he said.

On the occasion, the participants of the meeting acknowledged the incentives extended by the government to the local mobile phone manufacturers and assemblers.

They were of the view that if the current trend continued, the export target set by the government could be achieved.

However, they emphasised the need for sustainability of policies and tax rebate for exporters, citing that they should be treated on a par with those in regional countries.

Published in The Express Tribune, August 28th, 2021.

 

[ghazi52]

Chinese company to manufacture smartphones in Pakistan
November 2, 2021


Chinese smartphone and electronics giant Xiaomi, the global consumer electronics & smartphone giant, has joined hands with Select Technologies (Pvt) Limited, a wholly-owned subsidiary of Air Link Communication Limited has vowed to manufacture phones in Pakistan. As per a statement by Air Link, it is initially targeting the production of an estimated 2.5-3 million handsets annually which will approximately contribute $450 million annually to revenue. The production facility will be located adjacent to Air Link’s existing state-of-the-art mobile manufacturing facility at the Quaid-e-Azam Industrial Estate, Kot Lakhpat Lahore.

Company says it is targeting production of an estimated 2.5-3mn Xiaomi smartphones in Pakistan annually.
Manufacturing of these smartphones will approximately contribute $450 million annually to company’s revenue.

Xiaomi’s production facility expected to be operational within January 2022.

Chinese smartphones and electronics giant Xiaomi plans to manufacture phones in Pakistan, its local partner, Air Link Communication Limited, revealed in a material disclosure statement filed in the Pakistan Stock Exchange on Monday.

“Xiaomi, the global consumer electronics & smartphone giant, has joined hands with Select Technologies (Pvt) Limited, a wholly-owned subsidiary of Air Link Communication Limited, as its manufacturing partner for Xiaomi mobile phones in Pakistan,” reads the statement.

Last month, Air Link had announced that it will incorporate a wholly-owned subsidiary “Select Technologies (Pvt) Limited”.

“The primary objective of this wholly-owned subsidiary would be to take on additional mobile device manufacturing of certain selected brand(s),” Air Link had stated.

Air Link said that it is initially targeting the production of an estimated 2.5-3 million handsets annually, which “will have a material incremental impact on the earnings per share of the company other than the normal course of business.”

The manufacturing of these smartphones will approximately contribute $450 million annually to revenue, the company projects.

“The production facility will be located adjacent to Air Link’s existing state-of-the-art mobile manufacturing facility at the Quaid-e-Azam Industrial Estate, Kot Lakhpat Lahore,” read the statement.

The production facility is expected to be operational within January 2022.

Select will be the manufacturing partner whereas Air Link will continue to be one of the largest distributors of Xiaomi phones in Pakistan.

“Courtesy the manufacturing of Xiaomi phones by Select, Air Link expects to substantially increase its distribution and retail business of Xiaomi phones in Pakistan,” it said.

Xiaomi’s share of the global smartphone market grew by 83% year-on-year in the quarter ending June, as per Canalys, a research firm.

In a report published in Business Recorder, Xiaomi shipped 52.8mn phones during this period, making it the world’s top-selling brand behind Samsung and Apple.

Air Link has established several retail stores in Pakistan and is the only distributor of international smartphone brands that is now also fully vertically integrated, a statement from the company had said earlier.

“It is one of the largest distributors in Pakistan for Samsung, Apple, Huawei, Xiaomi, Itel, Techno, TCL and Alcatel,” the statement said.