Production of smart phone handsets by the local companies is declining but feature phone handsets are increasing at a time when the country is heading towards 5G technology.
The total production of handsets has also declined in the last five months from 4.14 million units in January last to 2.33 million units in May last, according to data released by Bangladesh Telecommunication Regulatory Commission (BTRC).
The share of local handsets manufactures also fell from 33.55 per cent in January last to 28.47 per cent in May last.
According to data, 71.53 per cent of total handsets manufactured in the country are feature phones while 28.47 per cent are smartphones.
The production of smartphones just halved in a month, the data showed.
In May 2022, the production of smartphones in the country was 664,000 units - 3G 4,000, 4G 615,000 and 5G 45,000.
On the other hand, the production of 2G or feature phones in May was 1.67 million units.
In April, smartphone production was 1.31 million units - 1.26 million 4G and 5G phones 52,000 units.
According to Bangladesh Mobile Phone Importers Association (BMPI), the mobile handset market in Bangladesh is worth over Tk 100 billion or roughly $1.2 billion.
The annual demand for mobile phone handsets is more than 35 million, of which 11 million units are smart phones. As of January 2021, local manufacturers supplied almost 80 per cent of the local mobile phone requirement. The sector has generated more than 15,000 jobs.
Currently, 15 companies have the licences to manufacture mobile handsets. Among them Walton Digi-tech Industries Ltd, Fair Electronics (Brand- Samsung), Edison Industries (Brand- Symphony), Alamin and Brothers (Brand- 5 Star), Carlcare Technology BD Ltd (Brands- itel and Techno), Anira International (Brand- Yunstar), Best Taicool Enterprise Ltd (Brand- Vivo), Grameen Distribution (Brand- Lava), Banglatrinic Technology (Brand- DTC), Benley Electronic Enterprise (Brand- Oppo), Okay Mobile and Mycel Technology are leading the market.
To encourage local manufacturing and assembling of smart phones and attract foreign investment, the government has taken steps through its "Made in Bangladesh" programme.
Foreign phone brands are incentivised to enter the country by increasing tariffs on imported handsets, imposing lower duties on component imports, and exempting consumer purchases from the country's value-added tax.
bdsmile@gmail.com