Comment by Riaz Haq on August 1, 2022 at 6:46pm

From Imports To Exports – An Achievement Of Mobile Phone Industry


https://pide.org.pk/research/from-imports-to-exports-an-achievement...

Policy Outcome and Achievements in Manufacturing Sector and Exports:
The role of public sector policy initiatives cannot be ignored in providing a boost to this sector. Factors for mobile phones rising demand may be manifold. Broadly it is due to the mobile phone policy incentives, reduction in taxes, recent changed work style and educational online trends, preference of new technology, ease in usage and time saving etc. The policy has targeted investment in the sector and investment policy outcome is clear with the evidence of key new mobile phone investors in the country (figure 5). Recently, after the first effective consignment of 4G smartphones to the UAE in 2022, the government has now fixed mobile phone export target at $1 billion for the current FY, connecting it with the incentives offered to local manufacturers.[7]

Recently several mobile set manufacturers have expressed willingness for investing in Pakistan. Samsung, one of these manufacturers that has partnered with Lucky Cement Limited to set up an assembly plant for locally manufacturing the smart mobile phones. According to PTA , almost 26 companies have been issued MDM authorization enabling them to manufacture mobile devices in Pakistan. The companies include renowned brands e.g. Samsung, Nokia, Oppo, TECNO, Infinix, Vgotel, Q-mobile and others.

Various Chinese mobile phone manufacturers are already investing in Pakistan and have played a key role in Pakistan’s mobile phone industry’s output boom in 2021. The Itel company has managed to manufacture 3.91 million mobile devices followed by VGO Tel at 2.97 million, Infinix 2.65 million Vivo 2.45 million, Techno 1.87 million, QQMEE 0.86 million and Oppo 0.67 million (Source: PTA). The situation is encouraging and will help the nation in achieving the goal of exporting and sustainable development as well as making Pakistan a global exporter of mobile devices.

Local production increased

Big success of Mobile phone manufacturing in 2021
Pakistan has become 4G exporter
Exported the rst badge of 1500 locally manufactured smartphones to the United Arab Emirates (UAE)
Investment in market/Chinese players

About 3.91 million mobile devices manufactured by Itel
VGO Tel manfacturing was at 2.97 million, In nix 2.65 million Vivo 2.45 million, Techno 1.87 million, QQMEE 0.86 million and Oppo 0.67 million (Source:PTA)
Local manufacturing capacity increased

Local manufacturing plants assembled 9.03 million smartphones while the number of 2G mobile phones was 13.09 million
Pakistani phone manufacturers are now assembling major brands
Attracting investment

“Make in Pakistan” policy attracted investors to contribute for the development of electronic eco-system
New Firms entering in the market
New rms will o er good quality, low-priced mobile handset devices
The Mobile Device Manufacturing (MDM) Regulations of January 2021 encouraged manufacturers to establish their
units in Pakistan.
Employment for youth

Employment opportunities for talented youth and to local technical and semi-technical manpower
By increasing localization, production, and exports Pakistan will create further 200,000 to half million jobs
in the country
Conclusions

Pakistan’s mobile phone industry showed an achievement.
Handsets production increased with implementing new mobile phone manufacturing policy(2020) and efficient implementation of DIRBS.
Due to investments/incentives, the country has managed to become an exporter of 4 G handsets.

Comment by Riaz Haq on August 1, 2022 at 6:47pm

From Imports To Exports – An Achievement Of Mobile Phone Industry


https://pide.org.pk/research/from-imports-to-exports-an-achievement...


Conclusions

Pakistan’s mobile phone industry showed an achievement.
Handsets production increased with implementing new mobile phone manufacturing policy(2020) and efficient implementation of DIRBS.
Due to investments/incentives, the country has managed to become an exporter of 4 G handsets.
Correspondingly, being an exporter, there will be a boost in the digital economy through providing mobile services particularly in the form of mobile broadband and hence; enhancing export revenue, digital connectivity, ecosystem & innovation.
The handset manufacturers are determined to meet the challenge of localization, production, and exports which will not only create jobs in the country but will improve export competitiveness.
Recommendations

Introducing policies and efficient DIRBS has restored investors’ confidence to invest in Pakistan. A sustainability should be made to keep DIRBS running effectively.
Pakistan must keep interacting with new investor/firms and offer policy incentives (whenever needed) to let them stay in the market.
Pakistan needs to set production and export target for mobile phones in comming years.
Domestic market of mobile phones needs to be established by some incentives, & ease of doing business. Any necessary policy change must be timely introduced to get full benefit out of it.
For Mobile phone manufacturing, proper value chain needs to be developed.
Concluding Remarks:
Pakistan’s mobile phone manufacturing industry has shown its potential to increase domestic production of handsets, after implementation of new Mobile Devise Manufacturing Policy (2020) and Devise Identification Registration and Blocking System. Through new investments/incentives and DIRBS the country has managed to create favorable business environment and hence Pakistan become an exporter. This encouraging development will promote the exports of handsets in future. Correspondingly, being an exporter, there will be a boost in the digital economy through providing mobile services particularly in the form of mobile broadband and hence; enhancing export revenue, digital connectivity, ecosystem & innovation. The handset manufacturers are determined to meet the policy challenges of localization, production, and exports which will not only create jobs in the country but will improve export competitiveness. Introducing successful policies and efficient DIRBS has restored investors’ confidence to invest in Pakistan.

It is recommended that Pakistan must keep interacting with new mobile phone manufacturing investor/firms and offer policy incentives (whenever needed) to let them stay in the market. Domestic market of mobile phones needs to be established by provision of facilities incentives, investment & ease of doing business. Any necessary policy change must be timely introduced to get full benefit out of it. For handset manufacturing, proper value chain needs to be developed. A sustainability should be made to keep DIRBS running effectively.

Comment by Riaz Haq on August 1, 2022 at 8:33pm

PTA confirms 14 Million mobile phones manufactured locally during Jan-Jun 2022


https://www.phoneworld.com.pk/14-million-mobile-phones-manufactured...


According to the Pakistan Telecommunication Authority, 14.08 million mobile phones manufactured during the first six months (January-June) of 2022, compared to 1.14 million imported commercially (PTA).


In June 2022, local manufacturing plants produced/assembled 1.67 million mobile phone devices. Local manufacturing facilities produced 24.66 million mobile phone handsets in calendar year 2021, up from 13.05 million in 2020, representing an 88 percent increase. According to PTA data, commercial imports of mobile phone handsets rose at 10.26 million in 2021, up from 24.51 million in 2020.

The 14.08 million mobile phones manufactured/assembled domestically include 8.06 million 2G and 6.02 million smartphones. According to PTA data, 54 percent of mobile devices in Pakistan are smartphones, while 46 percent are 2G.Overall telecom imports into the country surged by 3.52 percent over the time under evaluation, from $2.593 billion in July-June 2020-21 to $2.684 billion during the same period last year.

The effective implementation of the Device Identification Registration and Blocking System (DIRBS), in conjunction with supportive government regulations, such as the mobile manufacturing policy, has provided a favorable climate for mobile device manufacture in Pakistan.

It has also benefited Pakistan’s mobile ecosystem by minimizing the bogus device market, creating a fair playing field for commercial organizations, and building consumer trust through the development of standardized legal routes for all types of device imports.

Comment by Riaz Haq on August 2, 2022 at 5:07pm

The cumulative market share of the six major players (in mica tape insulation) is near about 40%. These market players are involved in collaborations, mergers & acquisitions, and new product launches to strengthen their market presence. For instance, in May 2021, Mica Corporation expanded its global distribution network to support growth factors in Pakistan. The company extended its market presence through this development.


https://shanghai.ist/2022/08/02/mica-tape-for-insulation-market-opp...


Astute Analytica released a new research report on the global Mica Tape for Insulation Market. The global market study looks into a variety of subjects, such as opportunities, market size, development, innovation, sales, and the overall growth of top players.

The global mica tape for insulation market held a market value of US$ 167.2 Million in 2021 and is forecasted to reach US$ 200.1 Million by the year 2027. The market is expected to register a CAGR of 3% during the forecast period.

The study incorporates both qualitative and quantitative data and draws on both primary and secondary statistical sources. Significant companies, important market categories, and a range of products are included in the global market report. In addition, the report covers the measurement years and the study points.

Growth Influencers:

Increasing application of mica electrical insulation in consumer electronics

Mica tape is quite commonly used in everyday appliances and consumer electronics. Since the product is very easy to shape, it is apt for mass production of components. This also allows electronic manufacturers to ensure meeting the strict safety standards, associated with consumer electronics. Furthermore, mica tape’s versatility is also suited for small form factors, which is required, as demand for greater performance in consumer electronics needs to be balanced with considerations regarding weight, design, and size.

Favorable government initiatives to promote the semiconductor industry

Various government initiatives to develop the semiconductor industry are expected to drive market growth. For instance, in the Union Budget of 2017-18, the government of India increased the allocation for incentive schemes, such as the Modified Special Incentive Package Scheme (M-SIPS) and the Electronic Department Fund (EDF), to USD 111 million. To ensure further investments, reduce dependence on imports, and create employment opportunities, the government amended the M-SIPS in 2020 and approved new incentives for investors, worth USD 1.47 billion. Such initiatives by government organizations to boost the semiconductor industry are expected to drive the market growth of mica tape for the insulation market.

Comment by Riaz Haq on December 14, 2022 at 8:16am

Pakistan Exports 120,000 Locally Manufactured Mobile Phones

https://propakistani.pk/2022/12/14/pakistan-exports-120000-locally-...

The export ceremony of locally manufactured mobile phones by Pakistan Telecommunication Authority (PTA) Authorization holder Inovi Telecom was held at PTA headquarters today.

The ceremony was held to mark Inovi’s achievement of the export of 120,000 locally made mobile phones of the SEGO brand to the United Arab Emirates for African markets.


---------
Inovi Telecom is the first company to export locally manufactured mobile phones in large quantities. Inovi’s CEO appreciated PTA for its active support and for taking measures to help bolster the mobile industry. Moreover, both PTA Members extended their continued support for the development of a mobile device manufacturing ecosystem in Pakistan.

Inovi Telecom Pvt. Ltd was issued Mobile Device Manufacturing Authorization on 9th April 2021 in accordance with the PTA Mobile Device Manufacturing (MDM) Regulations, 2021.

Comment by Riaz Haq on December 26, 2022 at 7:03pm

#Pakistan Made Nearly 20 Million #MobilePhones in 11 Months of CY2022. Last year (CY 2021) Pakistan assembled/manufactured 24.66 million compared to 13.05 million in 2020 – an 88 percent jump. #manufacturing #smartphones https://propakistani.pk/2022/12/26/pakistan-made-nearly-20-million-...

The local manufacturing plants manufactured/assembled 1.56 million mobile phone handsets in November 2022.

The manufactured/assembled mobile phone handsets by local manufacturing plants during the calendar year 2021 stood at 24.66 million compared to 13.05 million in 2020 – a landmark increase of 88 percent.

The commercial imports of mobile phone handsets stood at 10.26 million in 2021 compared to 24.51 million in 2020, revealed the official data of the Pakistan Telecommunication Authority (PTA).

The locally manufactured/assembled 19.7 million mobile phones handsets included 11.5 million 2G and 8.2 million smartphones.

Besides, as per the PTA data, 55 percent of mobile devices are smartphones, and 45 percent are 2G on the Pakistan network.

However, despite the increase in the local production of mobile phones, Pakistan imported mobile phones worth $290.570 million during the first five months (July-November) of the current fiscal year 2022-23, registering a negative growth of 66.08 percent when compared to $856.730 million during the same period of last year.

Pakistan Bureau of Statistics (PBS) data shows that on a month-on-month (MoM) basis mobile phone imports registered 1.92 percent negative growth and stood at $64.520 million in November 2022 when compared to $65.780 million in October 2022.

Mobile phone imports registered 69.57 percent negative growth on a year-on-year (YoY) basis in November 2022 when compared to $212.058 million during the same month of last year. The overall telecom imports into the country stood at $455.731 million during the first five months of the fiscal year 2022-23 and registered 59.67 percent negative growth when compared to $1.130 billion during the same period of last fiscal year.


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

Comment by Riaz Haq on April 18, 2023 at 10:59am

Both FoxConn and Wistron assembling iPhones in India are Taiwanese companies. Almost all of the components are imported. Local value addition in India is about 10%.

https://www.business-standard.com/podcast/companies/what-is-the-sig...

Comment by Riaz Haq on April 18, 2023 at 5:30pm

iPhone Exports from India Double to Surpass $2.5 Billion


https://www.bloomberg.com/news/articles/2023-01-09/iphone-exports-f...

Foxconn Technology Group and Wistron Corp. have each shipped more than $1 billion of Apple’s marquee devices abroad in the first nine months of the fiscal year ending March 2023, people familiar with the matter said. Pegatron Corp., another major contract manufacturer for Apple, is on track to move about $500 million of the gadgets overseas by the end of January, the people said, asking not to be identified revealing private information.

Apple’s rapidly growing export numbers illustrate how it is ramping up operations outside of China, where chaos at Foxconn’s main plant in Zhengzhou exposed vulnerabilities in the Cupertino-headquartered company’s supply chain and forced it to trim output estimates. That compounded a broader problem with evaporating demand for electronics as consumers weigh the risks of a global recession.

Apple, the world’s most valuable company, began assembling its latest iPhone models in India only last year, a significant break from its practice of reserving much of that for giant Chinese factories run by its main Taiwanese assemblers including Foxconn.

While India makes up just a fraction of iPhone output, rising exports bode well for Prime Minister Narendra Modi’s plan to make the country an alternative to China as factory to the world.

China’s Covid Zero policies and an episode of violence at the Zhengzhou plant — nicknamed iPhone City as the world’s biggest production center for the device — laid bare the dangers of relying on the country. While Beijing has since dropped that approach to containing the virus, Apple and other global names are exploring alternative locations more than ever before.

India’s vast workforce, Modi’s support and a thriving local market make it a prime candidate to take on more electronics manufacturing. Foxconn, Apple’s largest supplier, began building facilities in the country more than five years ago in anticipation of a need to extend its geographic range.

One recent selling point is a raft of new government incentives, a cornerstone of Modi’s drive to make India an electronics manufacturing hub. Foxconn has won 3.6 billion rupees ($44 million) of benefits in the first year of the so-called production-linked incentives scheme, while Wistron’s claims are currently being processed, the people said.


Representatives for Apple, Foxconn and Wistron didn’t respond to emails seeking comment. A Pegatron spokesperson declined to comment.

Apple’s contract manufacturers currently make iPhones at plants in southern India. But production in the country is just beginning. About 3 million of the devices were made in India in 2021, compared with 230 million in China, according to Bloomberg Intelligence estimates.

Foxconn began making the iPhone 14 in India a few months ago — sooner than anticipated — after a surprisingly smooth production rollout that slashed the lag between Chinese and Indian output from months to mere weeks. Apple’s three Taiwanese partners currently assemble iPhones 11 to 14 in India.

But moving out of China, where Apple has built a deep supply chain for close to two decades, isn’t easy. A Bloomberg Intelligence analysis estimated it would take about eight years to move just 10% of Apple’s production capacity out of China, where roughly 98% of the company’s iPhones are being made.

India tracks production and exports of all smartphone makers who enjoy financial incentives as part of Modi’s push.

Beyond smartphones, the country is drawing up plans to boost financial incentives for tablet and laptop makers, hoping to woo Apple to make everything from earphones to MacBooks locally as well as attract other brands. The iPhone maker is also expected to open its first retail store in India in 2023, after meeting certain criteria imposed on foreign retailers.

Comment by Riaz Haq on May 7, 2023 at 6:37pm

Mobile policy attracts 36 companies to manufacture smartphones in the country

https://profit.pakistantoday.com.pk/2023/01/23/mobile-policy-attrac...


Like the auto industry in Pakistan, the mobile phone industry has also attracted at least 36 companies to manufacture/assemble smartphones under the policies introduced by the government in 2020.

According to officials, the ‘Make in Pakistan’ policy introduced by the previous Imran Khan government has resulted in the establishment of 31 companies which manufacture a great number of renowned international mobile phone brands in the country.

As per the data, local manufacturing plants have manufactured over 19.7 million phone handsets during the first 11 months of 2022 compared to just 1.37 million commercially imported phone handsets. Data provided by the Pakistan Telecommunication Authority (PTA) reveals that the local manufacturing plants assembled 1.56 million mobile phone handsets in November 2022

Despite the increase in local production, the country imported mobile phones worth $ 290.57 million during the first five months (July-November) of the current fiscal year 2022-23. However, this was a decrease of 66.08 percent when compared to the imports of the same period last year at $ 856.73 million.

To review further expansion and issues related to the newly flourishing industry, the Ministry of Industries & Production (MoI&P) will hold a mobile device manufacturing summit on Tuesday (today). As per the officials of the Engineering Development Board (EDB), the relevant department of the MoI&P is jointly organising the summit in collaboration with the Pakistan Mobile Phone Manufacturers Association.

The summit will be addressed by the Federal Minister for Board of Investment, Chaudhry Salik Hussain, and will also include an exhibition of technology and products by the members of association including Xiaomi, Realmi, Infinix, Tecno, Itel, Alcatel, G-Five, Oppo, Vivo, Premier Code etc. The exhibition will be open for targeted general public.

According to officials, the purpose of organising this summit-cum-exhibition is to get input from all the relevant stakeholders which includes mobile device manufacturers, government officials from MoI&P, PTA, Ministry of Commerce, National Tariff Commission, Board of Investment, Ministry of IT & Telecom, Federal Board of Revenue and academia to boost local assembly of mobile devices through enhancing investment and employment opportunities in this sector.

The summit will focus on the localisation of parts and components used in mobile manufacturing, localisation of allied equipment like laptops and tablets, targeting export of mobile phones and promoting ease of doing business in Pakistan. The mobile device manufacturing sector is expected to benefit from this summit as it will facilitate further collaborations with international counterparts which can enhance the competitiveness of the sector.

The mobile device manufacturing policy was formulated by EDB in 2020 with the aim to promote local manufacturing of mobile devices in Pakistan and to provide an attractive environment for investors under the “Make in Pakistan” policy of the government.

According to data by PTA, 55 percent of the mobile devices in the country are smart phones while the remaining 45 percent are on 2G Pakistan network.

Comment by Riaz Haq on July 11, 2023 at 3:56pm

Business Recorder
@brecordernews
Indus Motor Company, the assembler of Toyota-brand vehicles in Pakistan, said on Tuesday that it has become the first company in the four-wheeler segment to start exports after it signed an agreement with Toyota Egypt.

https://www.brecorder.com/news/40252013/pakistans-indus-motor-compa...

Agreement signed, Ali Asghar Jamali says 'too early' to deem it turning point for struggling auto sector


“We have already sent our first shipment this month,” Chief Executive Ali Asghar Jamali told Business Recorder.

A press release issued by the company also stated that the first consignment of semi-processed raw material to be shipped to Toyota Egypt will mark the “beginning of era from the export point of view by any original equipment manufacturer (OEM) in Pakistan and plans are in place to continue in this direction”.

Jamali said that while significant, it is “too early” to deem it a turning point for the struggling industry.

His remarks come as Pakistan’s auto sector, highly dependent on imports to meet its assembling needs, remains under pressure due to constraints on issuance of Letters of Credit (LCs). The hindrance comes on the back of Pakistan’s low foreign exchange reserves that triggered import restrictions.

While the State Bank of Pakistan (SBP) has lifted restrictions, it will take some time before normalcy returns.

At the same time, a fast-depreciating rupee pushed up prices of automobiles while runaway inflation also took Pakistan’s key interest rate to a record high, discouraging buyers from financing. In response, almost all auto sector’s players have been announcing plant shutdowns with regular monotony.

“This is a baby step at the moment,” said Jamali. “Currently, we have raw material constraints in the country. It would stop us from exporting huge quantities. But I am hopeful.”

The CEO said the company will only be exporting a certain part to Egypt.

“If their confidence is built, we may be asked to export more parts.

“Even if we manage to export one part to many markets, it would increase our export numbers.

“We hope that other manufacturers would also get confidence and find avenues to export as well,” he added.

A statement from the company, meanwhile, said the partnership with Toyota Egypt “is the first step to meet requirements set under the Auto Industry Development and Export Policy (AIDEP) 2021-2026”.

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