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
