ISLAMABAD: Chinese mobile companies have captured half of the
Pakistani markets after availing incentives announced by the government,
says a report published by WealthPK on Thursday.
When the new MDM (Mobile Device Manufacturing) Policy was approved, many
companies started taking interest in acquiring assembling licences. Such
localisation would eventually transfer technology on the local level and
help in manufacturing cheap mobile units.
In Pakistan, 3G/4G penetration is less than 50 percent right now, and this
will take at least two or three more years to reach 80 percent. The ongoing
initiatives by the government for Digital Pakistan and creating local
manufacturing policy would make smartphones accessible for everyone,
WealthPK reported.
Pakistan is a price conscious market where large numbers of people belong to
middle-class families who cannot afford expensive phones. Hence, Chinese
mobiles with lower prices and high-end specifications are considered the
best possible option for most of the Pakistani smartphone users. Most of the
Chinese brands like Oppo, Infinix, and Huawei have launched customer service
centres in all large cities of Pakistan where devices can be easily fixed at
a low cost, which is not the case with other international brands. This has
helped Chinese brands establish a positive reputation in Pakistan.
Pakistan’s mobile phone market growth is phenomenal after the Pakistan
Telecommunication Authority (PTA) implemented Device Identification
Registration and Blocking System (DIRBS) system and curbed smuggled products
inflow, which also enabled official channel products to focus and invest
more in this market.
Currently, Pakistan’s market size is approximately 18-20 million units
smartphones annually worth approximately $2.3-2.5 billion. This market is
expected to grow at 15-20 percent on a YoY basis, keeping in view local
manufacturing and growth of the smartphone segment, WealthPK reported.
China historically maintains strong relations with Pakistan. The region has
already witnessed close economic cooperation between the two countries in
the form of the China-Pakistan Economic Corridor (CPEC). The CPEC plan has
provided a great opportunity of importing completely knocked down (CKD) kits
from China at affordable prices. Pakistan has an abundant supply of cheap
labour and Chinese original equipment manufacturers (OEM) in this sector can
establish its own plants in Pakistan. The country has already given tax
concessions to Chinese investors on a long-term basis.
Moreover, the mobile phone subscriber base in Pakistan has also crossed 185
million recently. With the increase of 3G/4G services in the country, the
number of smartphone users is also rising sharply. With such favourable
conditions, Chinese brands are also trying to gain a foothold in the
Pakistani market. The rise of Chinese mobile brands has not only introduced
various options in the Pakistani market, but also created job opportunities.
The market share of Chinese device brands in Pakistan is: Oppo 13.16
percent, Vivo 10.96 percent, Huawei 10.48 percent, Infinix 9.04 percent,
Tecno 5.35 percent, Xiaomi 3.92 percent, and Realme 3.21 percent from
June-Nov 2021. These stats are clear evidence that Chinese brands are
booming year by year and are expected to capture major portion of the market
in coming years.
The majority of Chinese phones cheaper than $200 are now assembled in
Pakistan. Chinese mobile brands not only focus on greatest hardware; they
are also interested in balancing price with performance. Chinese mobile
brands do not invest a lot in advertising, unlike other famous brands.
Social networks can be much cheaper and equally effective marketing tools. -INP
