Locally Made Smartphones to Hit Market in October
Locally produced low-cost smartphones are expected to reach the market from October, with broader local production projected by mid-October, says PM's Adviser on Posts, Telecommunications and Information Technology Rehan Asif Asad.
In a Nutshell
- Locally produced low-cost smartphones are expected to reach the market from October, with broader local production projected by mid-October, says PM's Adviser on Posts, Telecommunications and Information Technology Rehan Asif Asad.
- The plan targets about five crore people without smartphones, part of a wider goal of reaching full smartphone coverage within 18–24 months.
- Officials estimate that around seven crore Bangladeshis lack smartphones, while nearly half of mobile users still use feature phones.
- Manufacturers, tax concessions and operator support are expected to bring a basic smartphone’s market price close to Tk 5,000–5,500; manufacturers may provide up to Tk 1,000 subsidy per device.
- The government plans to use the Tk 1,200 crore Service Obligation Fund to support smartphone access for around two crore people below the poverty line.
- Banks can now offer EMI facilities for mobile-phone purchases, adding a financing option for low-income buyers.
Context
Bangladesh has promoted local smartphone assembly since 2017 through tax incentives on components and higher duties on imported finished phones. The policy brought brands such as Walton, Samsung, Xiaomi, Vivo and Symphony into local assembly, helping locally made devices capture a large share of the market.
But the industry struggled with changing tax and VAT rules, dollar shortages, a weaker taka, costly imported parts, lower consumer spending and competition from grey-market phones. Local smartphone output fell by about 27% in the first 10 months of 2023. Most “Made in Bangladesh” devices also remain dependent on imported displays, chipsets and other key components.
The new initiative aims to scale up this approach through local production, tax relief, manufacturer subsidies, operator data bundles, EMI facilities and SOF support for low-income users. Its outcome will depend on stable policies, component supply, action against grey-market devices, network quality and affordable data after promotional packages end.
Why It Matters
Affordable smartphones could significantly widen Bangladesh’s access to the digital economy. For millions of low-income households, a smartphone is now a gateway to mobile financial services, government platforms, online learning, agriculture-related information, job searches, telehealth and small-business activity. The initiative carries political importance as well: it tests whether the country’s digital transformation reaches farmers, rickshaw pullers, informal workers and rural families rather than remaining concentrated among urban and higher-income users.
What We Think
The programme’s central issue is not only the number of phones sold, but also who receives them, the quality they offer, and whether users remain connected over time. Device affordability also connects to wider questions of network quality, spectrum availability and low-cost data. A cheap handset has limited value in areas with weak mobile broadband coverage or unaffordable internet packages.