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‘82% of Bangladesh’s smartphone demand met through domestic manufacturing’

Homo Sapiens

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‘82% of Bangladesh’s smartphone demand met through domestic manufacturing’
Ibrahim Hossain Ovi
  • Published at 10:36 pm September 23rd, 2020
Smart phones sale goes up ahead of Eid

A vendor exhibiting a smartphone at a cell phone outlet at Bashundhara City, Dhaka. Photo taken on July 9, 2014 Syed Zakir Hossain/Dhaka Tribune




Once solely import-dependent, Bangladesh is on track in becoming self-reliant in smartphone production, which already captures a whopping 82% market share with local manufacturing just after three years of inception.
Manufacturers, even with the existing setup, are now eying to start exporting smartphones by the next two years, with continued government support.

Smartphone producers of the country have given the credit for such a mammoth rise to the policies adopted by the government which provided attractive incentives and a friendly investment climate to ensure growth in this sector.
They also lauded the high adaptability of the workers which has expedited the growth.
Against the annual demand of 6.82 million smartphone units in 2019-20FY, Bangladesh manufactured as many as 5.58 million smartphones, which translates to 81.81% of the total market demand.

According to the Bangladesh Telecommunication Regulatory Commission (BTRC), the total number of handsets manufactured and imported in the country in 2019-20FY was 29.48 million units.
Of which 14.98 million units --51% -- were locally manufactured by 10 local companies whereas 14.50 million units -- 49% -- had to be imported.


One thing to be noted is that, of the total mobile phones used in the country, 92% are feature phones and only 8% are smartphones.
In the FY20, the country sold 6.82 million smartphones, of which 5.58 million -- 81.81% -- units were locally manufactured and the rest 1.23 million --7.19% -- were imported.

When it comes to feature phones, Bangladesh heavily relies on other countries. In the FY20 it imported 13.26 million units of feature phones, while the local manufacturers produced 9.40 million units.

Factors responsible for growth
“It’s a great achievement and a matter of pride that just within three years ‘Made in Bangladesh’ tagged smartphones have taken a lead in the market and grabbed 82% market share,” said Rezwanul Haque, chief executive officer of Transsion, a mobile phone manufacturer, to Dhaka Tribune.

“This has been made possible due to the government’s brilliant policies encouraging domestic manufacturing.
“While the adaptability of our workers and low-cost labour also helped the local producers to achieve such a tremendous success,” he added.
Besides, the move of the mobile phone brands and the government to capture a large chunk of the market through domestic production was another factor, he said.

“In 2018, the government decided to reduce import dependency and promote domestic manufacturing of mobile phones through policy support.

“As a part of this, the government incentivized local manufacturing, while discouraging imports through duty hike,” said Md Mesbah Uddin Ahmed, chief marketing officer of Fair Electronics, the local manufacturer of Samsung handsets.

“These changes resulted in homegrown as well as foreign brands to start manufacturing in Bangladesh where there is a huge market of smartphones and it is easier to capture it with the local production,” said Mesbah.
“Since it is a technology-based business, it took time and we geared up production in 2019 and onwards, which helped us to grab the market,” he added.

‘Made in Bangladesh’ smartphones to see export by 2022
“Since we have the capacity and are already very close to meet our own demand, there is the scope for export and I am hoping to start exporting within the next two years,” said Transsion’s Rezwanul Haque.
“Bangladesh has to improve its quality and become mature in manufacturing to start exporting. While improving the skills of the workers and taking them to the next level of manufacturing is also very crucial in this effort,” he added.

“Since the business of mobile handset manufacturing is relocating from China and landing to Vietnam and India. In a bid to take advantage of this, we have to properly prepare ourselves and offer attractive business prospects,” he said.
“Since locally produced smartphones are good in quality, this will help us to get a hold in the global market.

“There are good policies in place for this but we lack infrastructure and continuation of these policies will help the manufacturers to start export of smartphones and the government is committed to provide all-out support for this endeavor,” he added.

Contacted, Post and Telecommunication Minister Mustafa Jabbar, said: “Along with the existing manufacturers, a good number of others are also waiting in the pipeline to start production.
“So, very soon, the local market will be occupied by domestic manufacturers and soon this will open export opportunities for us.”
“For the exporters, we already have offered a 10% cash incentive and they will get it after exporting,” the minister added.

“I would like to give all a good news that Samsung is going to start manufacturing a fifth-generation (5G) smartphone in Bangladesh.
“Since we are yet to launch 5G in the country, this smartphone will be exported from here,” added the minister.

Taking a look at the local mobile phone companies, Walton, manufacturer of electronics and home appliances, topped the chart with a 33% market share with 4.95 million handsets, while Samsung manufactures 97,3000, which are mostly smartphones.
On the other hand, Symphony manufactured a total of 1.42 million units followed by Five Star with 568,500, Itel, Techno 4.28 million, Winstar 1.07 million, Vivo 972,381, Lava 225,000, DTC 1,800 and Oppo 511,123 units of smartphones.
 

CrazyZ

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A moment for silence for Pakistan
Reality is most of the component parts have to be imported (screens, chips, camera's and batteries). Assembly costs are minor....less than 5% of the cost of a smart phone. Net savings in countries that import all the components is minimal. Same largely goes for smart phones assembled in Vietnam and India.
 

volatile

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Reality is most of the component parts have to be imported (screens, chips, camera's and batteries). Assembly costs are minor....less than 5% of the cost of a smart phone. Net savings in countries that import all the components is minimal. Same largely goes for smart phones assembled in Vietnam and India.
Its a start you crawl before you walk ,you walk then run
 

mb444

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Reality is most of the component parts have to be imported (screens, chips, camera's and batteries). Assembly costs are minor....less than 5% of the cost of a smart phone. Net savings in countries that import all the components is minimal. Same largely goes for smart phones assembled in Vietnam and India.

Might be true if BD only imported everything.

The Samsung assemblers local value addition is 35% with plan to raise it to 45% in a year. The link is a year old.
https://www.google.com/amp/s/www.thedailystar.net/business/news/96pc-samsung-sets-assembled-locally-1813057?amp



Walton, BDs premier tech company produces many parts with local value addition of 40%

https://www.google.com/amp/s/www.thedailystar.net/business/news/walton-opens-ram-chip-production-1844794?amp


Symphony Bangladesh another local company with 20% value addition with plans to raising it to 30%.

 

Atlas

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Too bad no iOS offerings yet :(
In Bangladesh majority will not get iPhone even if it's cheaper. There is no point of buying iPhone other than show off I think .

If you can't download even a single song outside from Apple store , how many of our people will interested to get it?

iPhone is a show off of rich people, at least in Bangladesh we really have no use of it.
 

mb444

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In Bangladesh majority will not get iPhone even if it's cheaper. There is no point of buying iPhone other than show off I think .

If you can't download even a single song outside from Apple store , how many of our people will interested to get it?

iPhone is a show off of rich people, at least in Bangladesh we really have no use of it.
If you jailbreak it you can....however what would be the point.... you buy apple knowing that you trade restriction for better system stability and performance.
 

BHAN85

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Even the cheaper smartphones of 5stars or Walton has a lot of unnecessary things.

e.g. Why nobody manufacture a smartphone without cameras? (it would be useful to young people, to avoid them make stupid things that they will regret in the future: instagrams, tiktoks, and worst things)

Why they dont manufacture a real low cost smartphone? (smaller screens, batterys, no cameras, no gps...)

Or even a non-phone smartphone, like a tablet, but with the size of a smartphone.

A tablet with no-wifi and no-phone to avoid eavesdropping.

Why all companies in all countries manufacture the same shit and no one make something new?
 

CrazyZ

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Might be true if BD only imported everything.

The Samsung assemblers local value addition is 35% with plan to raise it to 45% in a year. The link is a year old.
https://www.google.com/amp/s/www.thedailystar.net/business/news/96pc-samsung-sets-assembled-locally-1813057?amp



Walton, BDs premier tech company produces many parts with local value addition of 40%

https://www.google.com/amp/s/www.thedailystar.net/business/news/walton-opens-ram-chip-production-1844794?amp


Symphony Bangladesh another local company with 20% value addition with plans to raising it to 30%.
Don't get me wrong here...I have no issues with Bangladesh's development but the post is deceiving. Even assuming the ramchips were local, I don't see 30% to 40% local content. The biggest savings may be in the lack of the brand name premium on the local branded phones. Samsung or Apple are going to charge the same price ($500 and up) for their phones irrespective of where there made...because of the brand name.
 

bluesky

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Reality is most of the component parts have to be imported (screens, chips, camera's and batteries). Assembly costs are minor....less than 5% of the cost of a smart phone. Net savings in countries that import all the components is minimal. Same largely goes for smart phones assembled in Vietnam and India.
Please note that assembling itself is one step forward. The next step is manufacturing the components, not all, but a few. Depending upon the capabilities of the locals, assembling may start chain activities.

Assembling itself is good to show that many foreign companies trust our people.
 

mb444

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Don't get me wrong here...I have no issues with Bangladesh's development but the post is deceiving. Even assuming the ramchips were local, I don't see 30% to 40% local content. The biggest savings may be in the lack of the brand name premium on the local branded phones. Samsung or Apple are going to charge the same price ($500 and up) for their phones irrespective of where there made...because of the brand name.


I can only rely on the reports....for example walton states they produce entirely all their motherboards, batteries, chargers, earphones. One assumes other component production line also exist, its that they have not yet achieved self sufficiency.... i can not think why any of the companies would bother lying ....
 

Michael Corleone

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In Bangladesh majority will not get iPhone even if it's cheaper. There is no point of buying iPhone other than show off I think .

If you can't download even a single song outside from Apple store , how many of our people will interested to get it?

iPhone is a show off of rich people, at least in Bangladesh we really have no use of it.
Lol I download songs from outside of apple store without issue...
these are just excuses put forward by android fanboys... I’ve nothing against android, just not my cup of tea... too inconsistent of an experience for me to invest same amount of money in
 

Atlas

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If you jailbreak it you can....however what would be the point.... you buy apple knowing that you trade restriction for better system stability and performance.
I know I can do it after jailbreaking. But it's not welcome by apple . On the other hand we can do whatever we want with Android without offending Google.
 

Bilal9

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Might be true if BD only imported everything.

The Samsung assemblers local value addition is 35% with plan to raise it to 45% in a year. The link is a year old.
https://www.google.com/amp/s/www.thedailystar.net/business/news/96pc-samsung-sets-assembled-locally-1813057?amp



Walton, BDs premier tech company produces many parts with local value addition of 40%

https://www.google.com/amp/s/www.thedailystar.net/business/news/walton-opens-ram-chip-production-1844794?amp


Symphony Bangladesh another local company with 20% value addition with plans to raising it to 30%.

I also saw a news item saying they are assembling the latest Galaxy Note models locally.

And yes Walton manufactures flex motherboards locally from discrete SMD/SMT components with Wave soldering process. Which is not in India even AFAIK. Although I cannot confirm, but they make many other cell phone components locally. They showed their SMT circuitboard process in this older video.


UHD 4K 55" TV's are also assembled with many local components. 4K Panels are still imported however, as are in majority cases in China too.Their latest TV's have Voice command option. Annoying sound in the video.

 
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