Samsung is seeing strong demand for its locally assembled Galaxy S24 smartphones and tablets in Pakistan, according to Bloomberg. The company said it is struggling to meet demand. Pakistan’s mobile phone industry produced 21 million handsets while its smartphone imports surged over 100% in the last fiscal year, according to media reports. The world's 5th most populous country has 192 million mobile phone users and 135 million broadband subscribers, according to the Pakistan Telecommunications Authority (PTA). It is the world's 7th largest mobile phone market.
Pakistan Telecom March 2024 Indicators. Source: PTA |
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What mobile phone "manufacturers" in Pakistan and India typically do are merely "assembly". They import all the key components like screens, chipsets, cameras and batteries from China, Taiwan or South Korea and assemble them locally. Its just like how Pakistani "assemblers" produce cars from imported CKD kits. It may give jobs to some, but does little in terms of value addition or fostering a localized manufacturing and design ecosystem for products.
India has done better in terms of creating such a design and manufacturing ecosystem and local parts supply chain for automobiles, with many domestic brands manufacturing motorcycles, cars, trucks and buses and competing with European, Korean and Japanese brands that also have manufacturing facilities here. But Indian industry has so far failed to replicate this success in the manufacturing of electronics and heavy machinery and the country is heavily dependent on imports for these.
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