Introduction:
With the assistance of China, Pakistan has embarked on local smartphone manufacturing, which includes the assembly and production of various components locally. This development raises an important question: Will locally manufactured smartphones be sold at lower prices compared to the current market rates?
The Shift to Local Manufacturing:
1. Beginning of Local Production:
- Pakistan has transitioned from merely assembling smartphones to manufacturing them locally. Components for these smartphones are now being produced within the country.
- Realme, one of Pakistan’s major smartphone assembly companies, has announced that it has started manufacturing smartphones on a trial basis.
2. Meeting Local Needs:
- Realme’s Public Relations Manager, Asma Hayat, highlighted that the company is producing smartphones tailored to the needs of the Pakistani market, intending to sell them at lower prices.
- She noted that the demand for locally assembled smartphones is increasing daily, as these devices are designed to meet local preferences and requirements.
Economic Impact:
1. Contribution to the Economy:
- During the last fiscal year, the smartphone assembly industry played a significant role in Pakistan’s economy. The demand for locally manufactured smartphones has surpassed that of imported ones.
- Asma Hayat mentioned that Pakistan now manufactures over 80% of its smartphone needs, with companies importing raw materials from abroad to produce these devices locally.
2. Overcoming Challenges:
- Despite facing challenges such as delays in obtaining Letters of Credit (LCs) due to a shortage of dollars, the industry has made significant progress. This issue has now been resolved, allowing smooth import of raw materials for smartphone assembly.
Market Demand and Quality:
1. Growing Demand:
- Abdul Wahab, Director of Icon Telecom, another major smartphone assembler in Pakistan, stated that the country produces 80 to 90 percent of its smartphone requirements. The locally manufactured smartphones meet international standards, thanks to China’s support in developing this industry.
- He emphasized that the local production meets the high demand for smartphones within the country, which continues to grow.
2. Quality and Standards:
- The locally manufactured smartphones are on par with international quality standards. This ensures that consumers get high-quality devices at potentially lower prices due to reduced import costs and tariffs.
Future Prospects:
1. Increasing Local Manufacturing:
- The goal is to maximize local manufacturing, reducing dependency on imported raw materials. This step is challenging but crucial for the growth of the industry.
- By increasing local production, Pakistan aims to further lower the costs of smartphones, making them more affordable for the average consumer.
2. Economic and Technological Growth:
- The growth of the local smartphone manufacturing industry is expected to have a positive impact on the economy, creating jobs and fostering technological advancements.
- The collaboration with China not only boosts the local industry but also enhances Pakistan’s capabilities in technology and manufacturing.
Conclusion:
The shift to local smartphone manufacturing in Pakistan, aided by China, is a significant development with the potential to lower smartphone prices in the market. With increasing local production, meeting international quality standards, and overcoming initial challenges, Pakistan is on its way to becoming self-sufficient in smartphone manufacturing. This initiative is expected to benefit the economy and provide consumers with high-quality smartphones at more affordable prices.
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