As the US advances with the new 5G technology, Samsung is making all attempts to cash on the opportunity. Since the high-speed internet setup is relatively fresh, 5G was previously only available in high budget flagships in the US. That has changed quite a lot this year. Companies like Vivo,
Motorola, and Samsung are releasing budget smartphones that have the 5G feature available as a huge selling point. Samsung has gained the most attention in this respect as it has launched two 5G enabled smartphones in 2020. The first one was Galaxy A71 5G and then very recently, they released the Galaxy A51 5G.
With these flagship solid budget phones, Samsung is bringing innovation to the people of the US in all-new ways. But what’s new with Samsung New Smartphone Assembly Plant. Let’s find out right here on the News Engine.
Samsung is Considering To Launch Smartphone Project
Samsung is expanding its production in various regions across the globe. The latest production and assembly setups were initiated in Bangladesh. Apart from this, Samsung has received great success in Vietnam, Indonesia, and India. Last week, Federal Minister for Productions and Industries announced in a tweet that Samsung Pakistan is actively considering setting up an assembly plant in the South-Asian Islamic Republic.
This announcement was made as Samsung Pakistan showed appreciation towards government policies regarding the smuggling of smartphones in the country. The government of Pakistan implemented DIRBS (Device Identification, Registration, and Blocking System) in 2019 followed up by Device Manufacturing Policy that was introduced recently.
According to Azhar, conditions for manufacturing and assembly of smartphones in Pakistan are now better than ever. Due to Mobile Policy and DIRBS, the production of smartphones has multiplied in Pakistan. The DM policy is aimed at the promotion of localization with the help of foreign direct investment, joint ventures, and local investments.
Moreover, DIRBS is proving highly effective in the prevention of smuggling and empowering local smartphone manufacturers. According to the 2019 report, the DIRBS initiative led to a successful legal import of over 28.2 million smartphones.
On top of this, the Islamic Republic of Pakistan is a country brimming with a young tech-savvy population. The demand for internet-enabled budget smartphones is therefore increasing in Pakistan.
The estimate tells us that 40% of Pakistanis are yet to be 15 and they are already interested in ownership of a smartphone device. Currently, the number of smartphone users is 76 million in the country. This number is expected to be as big as 150 million by the year 2025.
The high rate of smartphone usage has led to a surge in imports. Pakistan Bureau of Statistics has reported that half a billion dollars have been spent on smartphones import in the year 2019. All between the period of July to November.
This would take the full-year figure to about 1.2 million. So, the initiative of an assembly setup would greatly help Pakistan in balancing the bill of imports through local manufacturing and availability. As a result, imports of Samsung devices are expected to decrease in Pakistan.
From an operations point of view, it is also beneficial for both parties. The human capital resource advantage is highly competitive in Pakistan. This makes it a very captivating place for such investments from across the world.
The policies and assembly initiatives combined will create jobs for many skills as well as semi-skilled literate youth of the country. As localization will be implemented in phases, assemblers will become more confident. Thus, providing more jobs to the locals of the area.
Inflation is a growing problem in Pakistan. It is still a developing economy with a fluctuating economic beat. Most people have to fight with poverty-related issues as people have a very low inclination to save in this country. With investment still on a struggling path, job opportunities fall short. This is why people have low purchasing power as well.
If Samsung starts assembly plant in Pakistan, prices for the flagship will fall dramatically, making it more affordable for the local customers to purchase Samsung smartphones. This will also encourage other brands to follow the path of the South-Korean giant. Making things even better for the citizens of Pakistan.
We have already looked at the high numbers of import bills. The local assembly is expected to not only reduce the imports dramatically but also balance them out by a steady flow of exports.
Bangladesh has recently achieved high smartphone export. Pakistan can join a similar rank and even out its imports. Samsung is doing great in developed countries, but it has to realize the growth potential in developing countries as well. Pakistan is a huge market for smartphones, it is just as profitable for Samsung to make this investment as it is for the South-Asian country.