By June 2022, the local assembly is expected to meet 90 percent of the total smartphone demand in Pakistan, lowering cell phone prices by 10 to 15%.
According to Aamir Allawala, CEO of Tecno Pack Electronics Pvt. Ltd, Pakistan’s young smartphone sector has already created 60,000 jobs since the mobile industry policy was implemented in July 2020.
By June 2022, the industry is expected to meet 90 percent of the country’s smartphone demand.
According to a source in the business, tariff incentives on local manufacture and lower labor in the country will result in cell phone prices falling by 10 to 15%. The source requested anonymity because he or she did not want to be identified.
Allawala’s company has the capacity to produce approximately 10 million smartphones per year. In Pakistan, they assemble phones from Infinix, Tecno, ITEL, and Nokia.
“Because the mobile industry is labor-intensive, prices can be expected to fall.” “For example, labor costs $1,000 in China and $150 in Pakistan,” he explained.
He did not, however, share the exact percentage changes in prices. He stated that prior to the policy, duties on imported completely built units (CBUs) were also low, and so a significant price change should not be expected.
Because of the duty structure that favors cheaper phones, he claims that the majority of phones manufactured in Pakistan are priced below $200.
According to him, the duty on semi-knocked down units and labor cost on a $200 cell phone is around Rs. 2,000. In comparison, the regulatory duty on a $200 phone is Rs. 10,500.
According to the Engineering Development Board, 30 smartphone manufacturers have been granted permission to manufacture mobile phones in Pakistan. Nineteen of the thirty have already begun operations.
To read our blog on “AirLink given the green light to resell Apple products in Pakistan,” click here.
