Smartphone prices in Pakistan may fall by as much as 35% as the local assembly plans to meet 90% of total cell phone demand by June 2022.
Muzzaffar Hayat Piracha, CEO of Air Link Communication, stated that due to the current government’s mobile phone policy, duties and taxes on locally assembled phones have been significantly reduced.
“As a result, the price falls automatically.” There is a significant difference in the tax structures of SKD and CBU. “In some cases, the difference in duties is nearly 30 to 35 percent,” he said. “In a nutshell, the local assembly is unquestionably assisting in keeping prices low.”
“At the moment, Airlink is the only company that caters to end-to-end consumer needs.” We are a vertically integrated organization. “We cover everything from manufacturing to distribution to retail and e-commerce,” Piracha said.
Piracha stated that the company has a total capacity of approximately 0.8 million phones per month, which they are working to increase.
According to the CEO, the country’s cell phone industry has enormous potential. “Pakistan is the world’s fifth most populous country.” At the moment, smartphone penetration in Pakistan is only 36%, indicating a significant gap that needs to be filled. “We can upgrade our feature phone users to smartphone users with better cellular coverage and internet penetration,” he said.
Aamir Allawala, CEO of Tecno Pack Electronics Pvt Ltd, stated that the fairly news cell phone industry in Pakistan has already created 60,000 jobs since the mobile industry policy was implemented in July 2020.
The industry is also expected to meet 90 percent of the country’s cell phone demand by June 2022. According to an industry source, duty incentives on domestic production and cheaper labor in the country would result in smartphone prices falling by 10 to 15%.
Allawala’s company has the capacity to produce approximately 10 million cell phones per year. In Pakistan, they assemble phones from Infinix, Tecno, ITEL, and Nokia.
According to the Engineering Development Board, 30 cell phone manufacturers have been granted permission to manufacture mobile phones in Pakistan. Nineteen of the thirty have already begun operations.
According to Allawala, localization will gradually increase in the industry, making a case for exports as well. He also stated that the exchange rate will have a direct impact on locally assembled handsets, though to a lesser extent than CBU imported handsets.