Comment by Riaz Haq on March 13, 2021 at 6:47pm

Smartphone brands in Pakistan:

https://www.phoneworld.com.pk/smartphone-brand-share-in-pakistani-m...

Infinix:
The smartphones of Infinix have become popular for rendering quality products with excellent specs and features at an affordable cost, Because of this, it has witnessed growth in terms of value in the Pakistani market for the whole year. Its value rose from 11.6% in Q1 of 2020 to 27.6% in Q2 of 2020. Afterward, it witnessed a slight decline of 6.5 % in Q3 of 2020 then again increased a bit to 23.4% in Q4 of 2020. Even if you see the last four quarters, its value has remained constant without large fluctuations. Similarly, in terms of units, its share has also witnessed a similar trend, it increased in Q2 and witnessed a bit of decline in Q3 of 2020 and again jumped to 27.5% in Q4 of 2020.

Vivo:
The smartphones of Vivo are also popular in the Pakistani market. Due to this, they are also witnessing growth in terms of value in the recent era. Their market value of Vivo witnessed a positive trend except for Q2 in which it saw a decline. In the last two quarters, its share increased from 17.1 % in Q3 of 2020 to 22.2 % in Q4 of 2020. Similarly, in terms of units sold, a similar trend has been followed. The decline was only witnessed in Q2 of 2020 while in the last two quarters its share has increased from 15.3% in Q3 of 2020 to 20.2% in Q4 of 2020.

Tecno:
As Tecno and Infinix are subsidiaries of the same parent company, So the notion is the same, providing quality products at an affordable price. Therefore, its value has also not much fluctuated and seen a bit of decline in Q3 of 2020 after increasing in Q2 of 2020 as you can see in the above-mentioned graph. But again its value rose from 9.5 % in Q3 of 2020 to 14.3 % in Q4 of 2020. Simultaneously, in terms of units sold, its share has increased and seen a constant trend from 16.5 % in Q3 of 2020 to 19.0 % in Q4 of 2020.

iTel:
iTel is making gradually evolving in the Pakistani market because of its budget price. In terms of units sold, its share has not much fluctuated. It has seen a bit of decline in the Q2 of 2020 but its share increased from 5.5% in Q3 of 2020 to 8.8% in Q4 of 2020.

Oppo:
Oppo is renowned for providing the best camera phones. It has been witnessing a rising trend in 2019 but this time around its share has been falling in all Q1, Q2, and Q3 quarters as you can see in the graph, and its share in terms of value has fallen to 10.4 % in Q4 of 2020.

Samsung:
Unfortunately, the tech giant Samsung has not been able to grasp a major portion of the market share. However, its share hasn’t witnessed many fluctuations both in terms of units and value. In terms of units, its share increased in Q1 of 2020 and decreased in Q2 of 2020 then increased to 8.6% in Q3 of 2020 and fallen again 8.0 % in Q4 of 2020. However, on the other side, in terms of value, it has witnessed a growth of 0.1 % in the last quarter and only seen a decline in Q2 of 2020.

Others:
The other smartphone brand share include Huawei, Xiaomi, Realme, Apple etc. These brands are also seeing a decline in the local smartphone market. In terms of units sold, their share has decreased significantly from Q1 of 2020 to Q4 of 2020. Similarly, in terms of value, their share has decreased from 25.6 % in Q1 of 2020 to 17.5 % in Q4 of 2020. The tech-giant Huawei due to the non-availability of Google service has literally vanished from the local market.

Conclusion:

The afore-mentioned data is updated and taken from a very reliable source. If you have any queries regarding it, you can tell share them in the comment section!

Comment by Riaz Haq on March 13, 2021 at 6:51pm

The majority of the people in Pakistan tend towards cheaper and simpler smartphones. As we know that most of the top quality products like apple devices are expensive and a bit sophisticated if we compare them with the Android devices. As Android phones are being produced by a number of companies due to which they are much cheaper and most indigenous people know how to use them. Therefore, it is evident that most Pakistani people’s preference would be an Android phone in less price than Apple devices as they are expensive. In this article, we would let you know the smartphone brand share in the Pakistani Market.

https://www.phoneworld.com.pk/smartphone-brand-share-in-pakistani-m...

Smartphone Brand Share in Pakistan (2020)

Smartphone Market Share (Units & Value):

I will start with Infinix.

Infinix:

The smartphones of Infinix have become popular for rendering quality products with excellent specs and features at an affordable cost, Because of this, it has witnessed growth in terms of value in the Pakistani market for the whole year. Its value rose from 11.6% in Q1 of 2020 to 27.6% in Q2 of 2020. Afterward, it witnessed a slight decline of 6.5 % in Q3 of 2020 then again increased a bit to 23.4% in Q4 of 2020. Even if you see the last four quarters, its value has remained constant without large fluctuations. Similarly, in terms of units, its share has also witnessed a similar trend, it increased in Q2 and witnessed a bit of decline in Q3 of 2020 and again jumped to 27.5% in Q4 of 2020.

Vivo:

The smartphones of Vivo are also popular in the Pakistani market. Due to this, they are also witnessing growth in terms of value in the recent era. Their market value of Vivo witnessed a positive trend except for Q2 in which it saw a decline. In the last two quarters, its share increased from 17.1 % in Q3 of 2020 to 22.2 % in Q4 of 2020. Similarly, in terms of units sold, a similar trend has been followed. The decline was only witnessed in Q2 of 2020 while in the last two quarters its share has increased from 15.3% in Q3 of 2020 to 20.2% in Q4 of 2020.

Tecno:

As Tecno and Infinix are subsidiaries of the same parent company, So the notion is the same, providing quality products at an affordable price. Therefore, its value has also not much fluctuated and seen a bit of decline in Q3 of 2020 after increasing in Q2 of 2020 as you can see in the above-mentioned graph. But again its value rose from 9.5 % in Q3 of 2020 to 14.3 % in Q4 of 2020. Simultaneously, in terms of units sold, its share has increased and seen a constant trend from 16.5 % in Q3 of 2020 to 19.0 % in Q4 of 2020.

iTel:

iTel is making gradually evolving in the Pakistani market because of its budget price. In terms of units sold, its share has not much fluctuated. It has seen a bit of decline in the Q2 of 2020 but its share increased from 5.5% in Q3 of 2020 to 8.8% in Q4 of 2020.

Oppo:

Oppo is renowned for providing the best camera phones. It has been witnessing a rising trend in 2019 but this time around its share has been falling in all Q1, Q2, and Q3 quarters as you can see in the graph, and its share in terms of value has fallen to 10.4 % in Q4 of 2020.

Samsung:

Unfortunately, the tech giant Samsung has not been able to grasp a major portion of the market share. However, its share hasn’t witnessed many fluctuations both in terms of units and value. In terms of units, its share increased in Q1 of 2020 and decreased in Q2 of 2020 then increased to 8.6% in Q3 of 2020 and fallen again 8.0 % in Q4 of 2020. However, on the other side, in terms of value, it has witnessed a growth of 0.1 % in the last quarter and only seen a decline in Q2 of 2020.

Others:

The other smartphone brand share include Huawei, Xiaomi, Realme, Apple etc. These brands are also seeing a decline in the local smartphone market. In terms of units sold, their share has decreased significantly from Q1 of 2020 to Q4 of 2020.  Similarly, in terms of value, their share has decreased from 25.6 % in Q1 of 2020 to 17.5 % in Q4 of 2020. The tech-giant Huawei due to the non-availability of Google service has literally vanished from the local market.

Conclusion:

The afore-mentioned data is updated and taken from a very reliable source. If you have any queries regarding it, you can tell share them in the comment section!

Comment by Riaz Haq on March 20, 2021 at 9:45am

Hammad hopes smartphones sector to be bigger from automobile industry

https://www.app.com.pk/business/hammad-hopes-smartphones-sector-to-...

:Federal Minister for Industries and Production Hammad Azhar expressed the hope that smart phones manufacturing sector would prove to be even bigger from automobile industry in Pakistan and in next 10 years, its export revenues might be equal to country’s textile sector.

He was addressing as chief guest at the inaugural ceremony of Airlink Smartphone Assembly Line here at Quaid-i-Azam Industrial Estate Kot Lakhpat on Saturday.

Airlink Chairman Aslam Hayat Piracha, CEO Muzaffar Hayat Piracha and Engineering Development Board (EDB) Chairman Almas Hyder also spoke on the occasion, while Lahore Chamber of Commerce and Industry (LCCI) President Mian Tariq Misbah and a large number of businessmen and industrialists were also present.

Hammad Azhar said that effective and well-conceived industrial policies of the PTI government were now resulting into industrial revolution and robust economic growth.

He mentioned that when PTI came into government in 2018, around 70 to 80 per cent of smart phones sold in the local markets were smuggled lot. Curbing mobile phones’ smuggling was a herculean task, he continued, the government studied anti-smuggling strategies of other countries, and introduced DIRBS (Mobile Devices Identification, Registration and Blocking System) under which no mobile phone could be activated in Pakistan without clearing/paying all relevant duties and taxes.

“We have also removed all the reservations and apprehensions of the traders and all other stakeholders in this regard and due to effective policies of the government, there is no smuggled phone in the local markets and the government is collecting 60 to 70 billion rupees duty/tax from mobile phones. These measures also created ample space in the local market for the local manufacturers of smart phones,” he maintained.

Federal Minister added that government had also introduced Mobile Phones Manufacturing Policy-2020 and now five major players of this sector were setting up their manufacturing units in Pakistan.

“This is our landmark journey and now we are moving from local market towards export of smart phones,” he said and cited that Vietnam’s annual export revenues from mobile phones export stood at US $ 45 billion, which forms 25 per cent of its GDP.

Comment by Riaz Haq on March 20, 2021 at 9:47am

Non-textile exports rise in 8MFY21

The exports of engineering goods went up 19.74pc and surgical instruments 4.92pc. In the engineering sector, the export of electric fans posted over 15pc growth followed by transport equipment 0.95pc and other electrical machinery 17.16pc respectively.

https://www.dawn.com/news/1613334

Comment by Riaz Haq on March 24, 2021 at 12:07pm

GST removal on locally-assembled units: Samsung, OPPO may start manufacturing cellphones

https://www.brecorder.com/news/40072439/gst-removal-on-locally-asse...


M/s Samsung and M/s OPPO are likely to start local assembly in Pakistan soon after removal of sales tax on locally assembled mobiles from above $ 200 category.

Mobile Device Manufacturing Policy 2020 was approved by the ECC in May 2020. The decision was subsequently ratified by the Cabinet on June 2, 2020.

The mobile device manufacturing policy provides sufficient advantage to the local manufacturing of mobile phones especially below $ 200 category in comparison with imports in completely built condition. M/s VIVO, M/s Airlink Communications, M/s Inovi Telecom are amongst the new investors in local assembly of mobile phones that have already started their trial production in February 2021.

The combined capacity of these three companies is more than 1 million mobile handsets per month whereas M/s Transsion Tecno, a Karachi based company assembling three famous brands including Itel, Infinix and Tecno , has increased local assembly from 150,000 units to 650,000 units per month owing to increase in demand soon after the policy was launched. In addition to the new entrants in mobile assembly, few experienced companies like G-Five and Q Mobile was already operating in the market, while M/s Samsung and OPPO are poised to enter local assembly in Pakistan market and are probably waiting for the implementation of approved recommendation of policy to remove sales tax on locally assembled mobiles from above $ 200 category. By introduction of new players and capacity enhancement by existing companies, Pakistan will soon be able to meet major portion of local demand, which was around 3.6 million per month in CY 2020.

The local manufacturing companies are moving rapidly from 2-G non android market to the 4-G smart phones as the local manufacturing has ensured availability of mobile handsets at competitive prices to customers.

Engineering Development Board (EDB), a technical arm of Ministry of Industries and Production (MoIP) was made the secretariat of Mobile Policy.

The policy has provisioned a 3 % export rebate for the local companies to enter into export market. From the initial success of the policy and increased demand in local and international market, the local assemblers are optimistic about export of locally assembled mobile phones.

The mobile phone manufacturing industry is expected to become larger than the automotive industry of Pakistan in terms of turnover in a few years and employment is expected to grow manifold. To further boost the electronics sector, work has already started on preparing appropriate framework for local assembly of tablets, allied equipment and mobile accessories in near future in line with its vision to improve the entire eco system, and make this the fastest growing sector in terms of employment and exports in the near future.

Comment by Riaz Haq on July 8, 2021 at 6:08pm

#Samsung plans #smartphone assembly in #Pakistan. Smartphone imports in Pakistan have swelled by 63% to $1.860 billion in 11MFY21 from $1.138bn in the same period last year. There are over 100 million #mobile #broadband subscribers. DAWN.COM

https://www.dawn.com/news/1633812

South Korean tech giant Samsung has been in talks with three investors for setting up a mobile manufacturing unit in Pakistan.

Sources said out of three parties, one has a franchise from Korea which has already set up vehicle assembling plants in Pakistan under Auto Development Policy (ADP) 2016-21, while other two are different parties.

They said so far no agreement has been signed as Samsung, after short listing various companies, is in the process of finalising its plan to award the licence to one of the companies for cellphone manufacturing.

The world’s biggest smartphone maker said in an earnings estimate on Wednesday that it expected operating profit of around 12.5 trillion won ($11 billion) for April to June, up from 8.15 trillion won a year earlier.

Companies being shortlisted for award of licence

“The Korean company aims to start local assembly of cellphones in the last quarter of this year,” a source, who is looking after the development in the mobile phone sector, told Dawn on Wednesday.

Market sources said Samsung may prefer the option to ink the agreement with one of the Korean companies operating in Pakistan owing to comfort level which it may not find with non-Korean firms.

The Engineering Development Board (EDB), an arm of the Ministry of Industries and Production (MoIP), approved Mobile Device Manufacturing Policy (MDMP) in 2020 and so far 21 companies have been given the green signal for mobile device manufacturing authorisation from March to June 2021.

As per EDB list, factories’ locations include Rawalpindi, Karachi, Lahore, Faisalabad and Islamabad. Some prominent brand names include Nokia, Oppo, Infinix, Tecno, Itel, Vivo, Alpha, Realme, VGOTEL, DCODE, Calme, Xcell, Spice, TCL, Alcatel, etc.

Sources said that the government has framed MDMP to encourage foreign players to take a plunge in Pakistan for setting up cellphone manufacturing unit. The aim is to produce the product under the banner of “Make in Pakistan” and to discourage imports.

Cellphone imports, as per figures of Pakistan Bureau of Statistics (PBS), have swelled by 63pc to $1.860 billion in 11MFY21 from $1.138bn in the same period last fiscal year.

According to the Economic Survey 2020-21, during July 2012 to February 2021, telecom sector has attracted over $3.9 billion of Foreign Direct Investment (FDI). The FDI in telecom during July-February FY21 was $101.1 million. Telecom operators have invested an amount of $363.9m during July-December FY21.

The main driver behind this investment is the cellular mobile sector which has invested $253.5m during the period. The overall investment in the telecom sector during the first eight months of FY21 crossed $465m. Pakistan’s cellphone subscribers have reached 183.48m till May 2021.

Comment by Riaz Haq on July 14, 2021 at 7:01pm

#China #tech-giant Xiaomi to Set up Local #smartphone assembly unit in #Pakistan. Xiaomi is following the footsteps of other major brands like Tecno, Infinix & Realme which have recently opened their local #manufacturing units in Pakistan. #mobilephones https://www.phoneworld.com.pk/tech-giant-xiaomi-to-set-up-local-ass...

In a landmark development, the Chinese tech giant Xiaomi has announced that it will set up a local assembly unit in the country in three to four months, according to sources. The latest development will not only generate employment opportunities for the indigenous people but will also boost the local smartphone manufacturing space in the country. Furthermore, the local manufacturing of smartphones will also attract foreign direct investment (FDI) and ramp up a foreign exchange through exports.

Tech-giant Xiaomi to Set up Local Assembly Unit in Pakistan: Source
Basically, Xiaomi is following the footsteps of other major brands like Tecno, Infinix, Realme, etc. who have recently announced to open their local manufacturing unit in Pakistan. It will greatly benefit the company as Xiaomi is currently one of the most loved brands in Pakistan. It can be evident if we look at the sale of its recently launched devices like Mi 11, Note 10, etc. The primary reason behind its huge demand is that it renders quality, consumer-centric (gaming phones, camera phones, etc.), and affordable products.

Furthermore, as we know that Xiaomi deals in a range of accessories and IoT products. So if the company’s smartphone local assembly becomes a success story then the company will surely install other product manufacturing assemblies as well.

Currently, Pakistan is the 7th largest importer of mobile phones with a humungous market size of over 40 million users. Thus, consequently, local manufacturing will also save foreign exchange on mobile phone imports.

Comment by Riaz Haq on July 16, 2021 at 7:23am

Lucky Motor to produce of Samsung-branded mobile #smartphone in #Pakistan beginning in December 2021. Plant will be located at LMC’s existing plant facility producing vehicles at Bin Qasim Industrial Park, Special Economic Zone, Port Qasim, #Karachi. https://www.brecorder.com/news/40107634

https://twitter.com/haqsmusings/status/1416039226492129281?s=20

Lucky Motor Corporation (LMC), a subsidiary of Lucky Cement Limited, has entered into an agreement with Samsung Gulf Electronics Co., FZE (Samsung) for the production of Samsung-branded mobile devices in Pakistan, stated a notice sent to the country’s stock exchange on Friday.

“In pursuance of this transaction, LMC has also initiated the process of seeking necessary regulatory approvals to carry on the said business and, in this endeavor, has filed an application with the Pakistan Telecommunication Authority (PTA) for securing the license,” added the notice.

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.

Secretary informs parliamentary panel: 'Samsung poised to enter local market; two firms short-listed'

“The production facility is anticipated to be completed by end of December 2021. That further information on the amount contemplated to be invested in the production facility and the capacity thereof shall be discussed between the Parties (Samsung and LMC) in due course of time.”

LMC is currently engaged in the business of manufacturing, assembly, marketing, distribution and sales of Kia and Peugeot branded vehicles, parts and accessories thereof, in Pakistan.

The development comes as a major landmark for Pakistan that has been pushing to join the league of smartphone manufacturing countries.

In a bid to boost Pakistan's telecom and manufacturing sector, some 21 new companies have been authorised to start local manufacturing/assembly of mobile phones.

Comment by Riaz Haq on July 22, 2021 at 12:39pm

#China's Oppo to set up a dedicated assembly line in #Pakistan for Realme to produce #5G-enabled #smartphones and another for artificial intelligence (#AI) products at affordable rates. #Mobile #technology #Telecommunications #Internet #Broadband
https://tribune.com.pk/story/2311681/chinese-firm-to-launch-5g-phon...

Many smartphone companies have expressed their intention to begin production of mobile phones in Pakistan after cellular giant Samsung collaborated with the Lucky Group to produce high-quality phones in the country.

Now, the companies are making efforts to introduce 5G phones in the local market.

Chinese smartphone manufacturer Realme has shared plans to launch 5G-enabled phones in Pakistan at affordable prices after its parent announced the establishment of a local assembly line in the country.

Speaking to The Express Tribune, Realme Regional Marketing Director Sherry Dong said that the brand received an excellent reception in Pakistan, hence the company was now prioritising the country to introduce 5G mobile phones.

She added that the company was the first smartphone brand in Pakistan to sell over a million devices in less than a year, which was a significant milestone and paved the way for new investments and introduction of diverse products.

She announced that the company was planning to set up a local assembly line for its products after which top-notch technology would be available in Pakistan at affordable prices.

Read More: Why 5G is still out of Pakistan’s grasp

A few years ago, Realme’s parent company, Oppo Mobile Telecommunications Ltd, had expressed its interest in setting up a mobile assembly plant in Pakistan.

Giving further details, she said that the facility would have two separate assembly lines - one for each brand.

With a dedicated assembly line for Realme, the company will introduce 5G-enabled mobiles as well as other artificial intelligence (AI) products at affordable rates.

“5G is the future, therefore, we have to provide up-to-date technological products to Pakistani consumers at affordable prices,” she added.

The company utilises online marketplaces to promote its products because e-commerce has grown significantly in Pakistan due to the Covid-19 pandemic.

Keeping this in view, the management of the smartphone company has decided to introduce its own digital store in Pakistan’s online marketplace.

“We entered into partnerships with a couple of local companies to sell our products, but now we have decided to establish our own digital outlet in Pakistan,” she said.

Sherry added that digital platforms in Pakistan had matured over the past couple of years, but they still lagged behind regional countries.

She pointed out that the company faced some issues with Pakistan Customs as delay in release of shipments had caused shortage of its products.

Comment by Riaz Haq on August 6, 2021 at 5:21pm

Mobile Distributor Plans Pakistan’s Biggest Private Sector IPO

https://www.bloomberg.com/news/articles/2021-08-06/mobile-distribut...

Air Link Communication Ltd. plans to raise at least 5.85 billion rupees ($36 million) through an initial public offering this month, which would be the largest from a non-state firm in Pakistan.

The Lahore-based company plans to sell new and existing shares at a price between 65-91 rupees each, Chief Executive Officer Muzzaffar Hayat Piracha said in a reply to queries Friday. It will take investor orders on Aug. 30 and 31 and then price the offering.

Pakistan has seen a record streak of IPOs this year. Air Link, which started operations about a decade ago and has since become one of the largest distributors of phones in the country, saw sales rise 50% to 3.6 million units in year ended June.

The company plans to issue 60 million new shares and Piracha will sell 30 million from his holdings, said Kamran Nasir, CEO at JS Global Capital Ltd., consultant and bookrunner to the transaction. The IPO will be the largest since Interloop Ltd. raised about 5 billion rupees in 2019.

Air Link, which has also recently expanded into mobile assembling, plans to use the funds to expand its distribution network. It aims to have 150 outlets by 2026 from 14 currently, which will boost margins together with the assembly business, said Nasir.

The company expects its revenue to triple to 129 billion rupees and net income surging 500% to 9.2 billion rupees by fiscal 2025 from 2020, according to Nasir.

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