Mobile phone imports rise by 60pc

KARACHI: A strong demand for cellular phones has led to their higher imports which increased by 60 per cent in the last four months.

Mobile phone imports in July-October 2011 swelled to $220 million from $137.3 million in the same period of last year while imports in July-June 2010-2011 went up by 66 per cent to $523 million from $315 million in July-June 2009-2010.

The cell phone market is now bustling with buyers because of a wide range of varieties.

Carrying low price tags, various Chinese brands are competing with Nokia and Samsung. Many people prefer buying low priced phones, mainly of Chinese origin, as snatching of cell phones is on the rise and in many cases mobile phone robbers had even killed those who offered resistance.

Though many customers do not feel satisfied with the quality of Chinese phones, in view of rising food prices and high cost of living, low-priced Chinese brands, with camera, FM Radio, memory card and other options attract a number of buyers.

Chinese made smart phones are also available at low prices, from Rs5,000-7,000, but dealers say they are gradually losing customers due to lack of warranty and mediocre quality.

Total cell phone subscribers as per data of Pakistan Telecommunications Authority (PTA) till June 2011 stood at 108.9 million in the country.

In 2003-2004, there were five million subscribers.

Director Business Development United Mobiles Ejaz Hassan said that total cell phone sale now ranges between 1.4 and .5 million per month which was one million some six to eight months back.

He linked rising sale of cell phones to huge network expansion by cell phone operators in remote rural and urban areas.

When asked about any negative impact on Nokia sales from Chinese made sets, he said actually market share of Nokia had risen 55-60 per cent from 45-50 per cent some six months back, especially after the introduction of dual SIM option.

He said Nokia might have faced tough times in other world markets, but Pakistan has remained the best market for Nokia phones.

Teletec Enterprises Director Azad Lalani said that Chinese mobile phones now hold 30-35 per cent market share, but overall share of Chinese cell phones and Nokia is improving which is evident from a sharp hike in imports.

He said out of total import of mobile phones, the share of cell phones carrying price tag under $40 or below Rs3,500 stands at 80 per cent. In this category, Chinese phones are in competition with Nokia, Samsung etc especially after the introduction of dual SIM option.

Azad said that Chinese phones and even branded ones (manufactured in China) are arriving under Free Trade Agreement with China and only one per cent presumptive tax is being charged. However, duty on mobile phone arriving from other countries is Rs250 per phone.

A number of people now hold multiple SIMs since the cell phone operators are in intense competition and are introducing various packages.

Category: Business