• Thursday, May 26, 2022
  • Last Update : 04:24 pm

Handset makers incur Tk100cr loss, demand stimulus

  • Published at 05:58 pm June 7th, 2020
Web_Mobile phone
A customer checking upon a smartphone in an outlet Syed Zakir Hossain/Dhaka Tribune

They said sector may shrink by 30-35% this year, may take years to recuperate losses

The country’s mobile handset business suffered an estimated loss of Tk100 crore due to the Covid-19 pandemic, forcing handset manufacturers and importers to demand a separate stimulus package from the government, similar to those announced for the apparel industry and others.

Firms in the sector fear they may have to struggle for the next two years to recuperate for this year’s losses. 

Drawing the government's attention to their challenges, they demanded a stimulus package for their sector following the government's initiative in the apparel and other export-oriented industries.

Zakaria Shahid, managing director of Edison Group, the parent company of Symphony, and also general secretary of Bangladesh Mobile Phone Importers’ Association (BMPIA), expressed these concerns while talking to UNB recently.

BMPIA assessed the situation in the last 45 days and found that the sector, including mobile import, manufacture and market sales, incurred a loss of around Tk1 billion (Tk100 crore), he said.

Noting that all the nine handset manufacturing companies have bank loans, Zakaria said the companies had to pay interests to banks and salaries to the employees although their factories were shut due to the coronavirus fallout in the last two months.

Besides, the retailers got no respite from paying rent for their shops and wages to the staff, he said.

Fearing that the sector may shrink by 30-35%  this year, BMPIA secretary said it may take a couple of years to make up for the loss.

“We’re seeking incentives from the government to recover the loss of the sector. If the government helps the sector by providing loans with easy conditions, the loss can be recovered within a short time,” he said.

He also revealed that they requested the Ministry of Finance in a letter not to change any of the provisions in place for the mobile handset industry in the upcoming budget. “We’ve said that there should be no change in the provisions for mobile handsets in the upcoming budget,” he added.

In the pre-coronavirus period, a total of 2.5 million handsets were annually sold in the country. An estimated 25-30% of those were smartphones.

Currently, a total of nine companies are locally manufacturing mobile handsets after importing raw materials from abroad.

All the factories remained shut since the coronavirus outbreak but those will now start operation maintaining healthcare guidelines, he said.

50
Facebook 50
blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail