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‘Made in Bangladesh’ smartphones to rule the roost soon

bluesky

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https://www.thedailystar.net/business/news/made-bangladesh-smartphones-rule-the-roost-soon-1860034

12:00 AM, January 28, 2020 / LAST MODIFIED: 12:54 AM, January 28, 2020
‘Made in Bangladesh’ smartphones to rule the roost soon

About 62 per cent smartphones now manufactured locally

Muhammad Zahidul Islam

Bangladesh is on its way to becoming self-reliant in smartphone production by the year end, with locally manufactured handsets now ruling the roost.

And by 2022, the country will add another product to its export basket: smartphone, according to estimates.

Most of the top brands have raised their game to meet the entire domestic demand from their plants in the country, while all the basic phones the country needs will be made locally within another one year, plant owners said.

Currently, nine foreign brands have their plants in the country while five of them have stopped importing devices as they are meeting their demand from local production.

Local manufacturers made about 54 lakh smart devices in their plants last year, while another 24 lakh were imported via the legal and grey channels, industry insiders said.

Along with 2.51 crore basic phones, total sales of handsets ran into 3.28 crore in 2019, according to local manufacturers and importers.

Local makers have been doing an excellent job for the last one and a half years, said Mohammad Mesbah Uddin, chief marketing officer of Fair Electronics that assembles Samsung devices in their plant in Narsingdi.

“Within the next few months some foreign brands will go into production in their local plants and Bangladesh will be self-dependent in smartphone production within this year,” said Mesbah, who is also the joint secretary of the Bangladesh Mobile Phone Importers Association (BMPIA).

Of the manufacturers, Samsung is on the fore, controlling about one-fourth the market. And the South Korean tech giant make about 97 per cent of their devices in the local plant that opened in 2018.

Home-grown brands Walton and Symphony and China’s Transsion Holdings, Vivo and Oppo meet their full demand from their plants in Bangladesh.

Transsion is now making about 90,000 smartphones per month of two separate brands, while its total monthly production is 4.5 lakh units, according to Rezwanul Haque, chief executive officer of Transsion.

“We are faring fine. As time passes, both quality and quantity will grow further,” said Haque, a former general secretary of the BMPIA.

Symphony, once the market leader, has not been importing any smart gadgets since June last year, said Jakaria Shahid, managing director of Edison Group, its parent company.

The company is assembling about 1.5 lakh smartphones every month in its plant in Ashulia on the outskirts of Dhaka.

In the plant they are also making 1.25 lakh units of basic phones a month and no imports would be required by the year-end.

“Our target is to export devices by 2022, and to that end, we are in a process to set up two new plants,” Jakaria, also the general secretary of the BMPIA, said.

Vivo and Oppo opened their plants in the second half of 2019 soon after the government increased import duties for smartphones to 57 per cent from 32 per cent.

Before that, tax benefits offered in the budgets of fiscal 2016-17 and 2017-18 encouraged brands to go for local manufacturing.

Chinese brands Xiaomi and Huawei now face high taxes as they have no plants in Bangladesh, which is why they are planning to set up factories in the country, said market insiders.

Three other brands -- 5-Star, Winstar and Lava -- have also their plants in Bangladesh.

Both Transsion and Symphony are mulling over opening plants to manufacture mobile accessories, which is seeing a rising demand.

At the end of last year, Bangladesh’s active mobile connections stood at 16.64 crore.
 

mmr

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https://www.thedailystar.net/business/news/made-bangladesh-smartphones-rule-the-roost-soon-1860034

12:00 AM, January 28, 2020 / LAST MODIFIED: 12:54 AM, January 28, 2020
‘Made in Bangladesh’ smartphones to rule the roost soon

About 62 per cent smartphones now manufactured locally

Muhammad Zahidul Islam

Bangladesh is on its way to becoming self-reliant in smartphone production by the year end, with locally manufactured handsets now ruling the roost.

And by 2022, the country will add another product to its export basket: smartphone, according to estimates.

Most of the top brands have raised their game to meet the entire domestic demand from their plants in the country, while all the basic phones the country needs will be made locally within another one year, plant owners said.

Currently, nine foreign brands have their plants in the country while five of them have stopped importing devices as they are meeting their demand from local production.

Local manufacturers made about 54 lakh smart devices in their plants last year, while another 24 lakh were imported via the legal and grey channels, industry insiders said.

Along with 2.51 crore basic phones, total sales of handsets ran into 3.28 crore in 2019, according to local manufacturers and importers.

Local makers have been doing an excellent job for the last one and a half years, said Mohammad Mesbah Uddin, chief marketing officer of Fair Electronics that assembles Samsung devices in their plant in Narsingdi.

“Within the next few months some foreign brands will go into production in their local plants and Bangladesh will be self-dependent in smartphone production within this year,” said Mesbah, who is also the joint secretary of the Bangladesh Mobile Phone Importers Association (BMPIA).

Of the manufacturers, Samsung is on the fore, controlling about one-fourth the market. And the South Korean tech giant make about 97 per cent of their devices in the local plant that opened in 2018.

Home-grown brands Walton and Symphony and China’s Transsion Holdings, Vivo and Oppo meet their full demand from their plants in Bangladesh.

Transsion is now making about 90,000 smartphones per month of two separate brands, while its total monthly production is 4.5 lakh units, according to Rezwanul Haque, chief executive officer of Transsion.

“We are faring fine. As time passes, both quality and quantity will grow further,” said Haque, a former general secretary of the BMPIA.

Symphony, once the market leader, has not been importing any smart gadgets since June last year, said Jakaria Shahid, managing director of Edison Group, its parent company.

The company is assembling about 1.5 lakh smartphones every month in its plant in Ashulia on the outskirts of Dhaka.

In the plant they are also making 1.25 lakh units of basic phones a month and no imports would be required by the year-end.

“Our target is to export devices by 2022, and to that end, we are in a process to set up two new plants,” Jakaria, also the general secretary of the BMPIA, said.

Vivo and Oppo opened their plants in the second half of 2019 soon after the government increased import duties for smartphones to 57 per cent from 32 per cent.

Before that, tax benefits offered in the budgets of fiscal 2016-17 and 2017-18 encouraged brands to go for local manufacturing.

Chinese brands Xiaomi and Huawei now face high taxes as they have no plants in Bangladesh, which is why they are planning to set up factories in the country, said market insiders.

Three other brands -- 5-Star, Winstar and Lava -- have also their plants in Bangladesh.

Both Transsion and Symphony are mulling over opening plants to manufacture mobile accessories, which is seeing a rising demand.

At the end of last year, Bangladesh’s active mobile connections stood at 16.64 crore.
Is there any breakdown of value additions? Which company adding how much value? Tax benefit should be higher for companies adding more value not just assembling.
 

UKBengali

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Is there any breakdown of value additions? Which company adding how much value? Tax benefit should be higher for companies adding more value not just assembling.

No specific figures as such but Walton would be the highest as it designs and manufactures the LCD screens and motherboards on it's smartphones.

BD makes smartphones these days rather than the assembly you see in India.
 

mmr

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No specific figures as such but Walton would be the highest as it designs and manufactures the LCD screens and motherboards on it's smartphones.

BD makes smartphones these days rather than the assembly you see in India.
Lol dont bring india in to discussion. India stronk ppl feelings will get hurt.
 

UKBengali

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Lol dont bring india in to discussion. India stronk ppl feelings will get hurt.

Required as some Indian dude was bragging about how many smartphones they export - not Indian firms but overseas companies that built plants in India.

I like the BD approach that has a mix of domestic and overseas companies as this both nurtures domestic industry and keeps quality high and prices low.
 

bluesky

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About 62 per cent smartphones now manufactured locally
It is a great piece of news. More value-added goods mean more industrialization and more employment. Thousands of such manufacturing, as well as assembly factories, are needed in the country. Usually, a parent manufacturing company starts with assembling because the locals cannot produce the parts and the assembling factories do not also trust them.

But, as time goes, the parent/assembling company starts surveying the market to get the parts manufactured by the local vendors. This is true for all other factory goods.
 
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UKBengali

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It is a great piece of news. More value-added goods mean more industrialization and more employment. Thousands of such manufacturing, as well as assembly factories, are needed in the country. Usually, a manufacturing company starts with assembling because the locals cannot produce the parts and the assembling factories do not also trust them.

But, as time goes, the assembling company starts surveying the market to get the parts manufactured by the local vendors. This is true for all other factory goods.

More evidence as to how BD is diversifying away from garments.
IT outsourcing by domestic companies in BD has surpassed 1 billion US dollars - per capita slightly ahead of India right now.

Now please can you stop repeating that BD does not have any industry or strategy to build it up?
 
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Homo Sapiens

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12:00 AM, January 24, 2020 / LAST MODIFIED: 04:58 PM, January 26, 2020
Symphony now meets smartphone demand from own plant
Plans to set up two more units, targeting export in 2022
People work at the assembly line of the Symphony plant in Ashulia yesterday. Photo: Muhammad Zahidul Islam

People work at the assembly line of the Symphony plant in Ashulia yesterday. Photo: Muhammad Zahidul Islam
Muhammad Zahidul Islam
A new era is dawning in the manufacturing industry as local companies are putting their best foot forward towards building a ‘Made in Bangladesh’ brand.

One such brand is Symphony, which is going neck and neck with foreign companies to grab a bigger pie of the smartphone market that was dominated by imports until recently.

The company is assembling about 1.5 lakh smartphones every month in its plant in Ashulia on the outskirts of Dhaka and has been meeting all its local demand from the plant since June last year.

The factory is also making basic phones at such a pace -- currently 1.25 lakh units a month -- that no imports would be required by the year end, said Jakaria Shahid, managing director of Edison Group, Symphony’s parent company.

“We stopped importing smartphones last June and our target is to meet the entire local demand from our plant by December this year.”


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The plant currently manufactures about seven to eight lakh units of basic and smartphones every month, according to Shahid, also the general secretary of the Bangladesh Mobile Phone Importers Association.

In the face of rising demand, the company is working to expand the plant’s capacity and build two more units, he told journalists, who were taken to Ashulia for a tour of the factory.

“The two new plants should be ready by 2022 and then we will seek to explore export opportunities.”

Symphony, which has a market share of 30 per cent, is splashing out about Tk 100 crore for the three plants.

They also have a plan to make mobile accessories, which will go some way towards building a total value chain for mobile assembling.

“We will develop software, mobile applications and games as well, while the plants will churn out about two lakh units of accessories.”

The factory is now adding 20 per cent value to the products and that will rise to 30 per cent over the next five years. The government offered huge tax benefits for mobile assembling in fiscal 2017-18 after which seven plants were set up in Bangladesh, with another two in the pipeline.

Symphony -- which began its journey in 2008, becoming Bangladesh’s first mobile phone brand -- has been leading the market for the last five years but has now shifted focus to handsets in the price range of Tk 4,000 to Tk 8,000.

The main demand lies in this segment, Shahid said, while urging the government to assess the market before giving licences for new plants.

“The quality of our phones is better than those made in China,” said Md Maksudur Rahman, senior director of business operation at Edison Group.

About 3.10 crore handsets were sold in 2019, of which 80 lakh were Symphony’s, said MA Hanif, head of sales.

https://www.thedailystar.net/business/news/symphony-now-meets-smartphone-demand-own-plant-1858351
 

Protest_again

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More evidence as to how BD is diversifying away from garments.
IT outsourcing by domestic companies in BD has surpassed 1 billion US dollars - per capita slightly ahead of India right now.

Now please can be stop repeating that BD does not have any industry or strategy to build it up?
How is your IT outsourcing ahead of India per capita wise?
 

UKBengali

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How is your IT outsourcing ahead of India per capita wise?

Ok.

Take out foreign companies and focus just on domestic companies.
I am also not interested in call centres as BD has no interest in this low skilled field.

Last fiscal BD domestic companies sold 1 billion US dollars of IT services and India did 8 billion US dollars. As India has slightly more than 8 times the population of BD, then per capita BD wins.
 

Indos

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It is a great piece of news. More value-added goods mean more industrialization and more employment. Thousands of such manufacturing, as well as assembly factories, are needed in the country. Usually, a manufacturing company starts with assembling because the locals cannot produce the parts and the assembling factories do not also trust them.

But, as time goes, the assembling company starts surveying the market to get the parts manufactured by the local vendors. This is true for all other factory goods.
It will be difficult to grow such companies if it is not protected by government by tariff and also from foreign investment. Learning from Indonesia history, we have big electronics company with have its own brand which is polytron. In the past, where the Japanese and Korean were still not building its electronics factories here, Polytron is the king in our market. I still remember our first TV was Polytron when I was still little kids. Later, Japanese and Korean electronics companies comes to our market, set up factories here and do marketing heavily. That national brand Polytron is actually still exist until now and also have so many electronics products from computer until Air Conditioner but the electronics goods market have already been captured by Japanese and Korean ones.

Similar thing now happening in our smart phone market. Before we set up FTA with China, local brand smart phone are holding quite large domestic smart phone market. We have at least 7 smart phone national brands, but now Chinese smart phone are flooding our market not long after FTA Asean China was effective.

Setting up business are not as easy as in the old days, as globalization emerges and FTA agreement with so many countries are signed, local companies need to compete not only with other local companies but also with MNC from abroad.
 

Protest_again

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Ok.

Take out foreign companies and focus just on domestic companies.
I am also not interested in call centres as BD has no interest in this low skilled field.

Last fiscal BD domestic companies sold 1 billion US dollars of IT services and India did 8 billion US dollars. As India has slightly more than 8 times the population of BD, then per capita BD wins.
Lol. Take out foreign companies? When all these companies managed by Indians from head to toe including some major tech companies.

IT outsourcing is done through population intellect. Its the jobs that count.

India endures to persist the world’s favorite when it comes to outsourcing. It has developed global confidence with chief players such as Cisco, Oracle and Hewlett-Packard opting for India because they are poised of gaining access to superior talent, quality results, fast turnaround times and low costs. Mr. Elfrink, (Cisco Systems), reiterates this point when he says, “We believe that India is the hub of the world where the ICT sector is concerned”. India also holds 65% of the universal offshore outsourcing BPO market, making it the dominant leader in providing outsourcing services.

Thus, Outsourcing industry has improved Indian economy primarily by employing a large number of people with the help by, building and maintenance of infrastructure. It is because of the outsourced ventures that people at large in India get opportunities to know and work in multi national corporations.
 

UKBengali

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Lol. Take out foreign companies? When all these companies managed by Indians from head to toe including some major tech companies.

IT outsourcing is done through population intellect. Its the jobs that count.

In fact, India holds 65% of the outsourced IT jobs. Furthermore, a prediction by Forrester Research moves to global business for IT outsourcing and hardware maintenance at approximately $503 billion in 2017

Oh god.:hitwall:

We must all say that Vietnam is the new Japan with all those exports by foreign multinationals then!
 

UKBengali

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It will be difficult to grow such companies if it is not protected by government by tariff and also from foreign investment. Learning from Indonesia history, we have big electronics company with have its own brand which is polytron. In the past, where the Japanese and Korean were still not building its electronics factories here, Polytron is the king in our market. I still remember our first TV was Polytron when I was still little kids. Later, Japanese and Korean electronics companies comes to our market, set up factories here and do marketing heavily. That national brand Polytron is actually still exist until now and also have so many electronics products from computer until Air Conditioner but the electronics goods market have already been captured by Japanese and Korean ones.

Similar thing now happening in our smart phone market. Before we set up FTA with China, local brand smart phone are holding quite large domestic smart phone market. We have at least 7 smart phone national brands, but now Chinese smart phone are flooding our market not long after FTA Asean China was effective.

Setting up business are not as easy as in the old days, as globalization emerges and FTA agreement with so many countries are signed, local companies need to compete not only with other local companies but also with MNC from abroad.
BD allowed domestic companies to establish themselves before allowing in FDI.
It has a healthy mix of foreign and domestic companies in electronics sector now.
 

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