In the first quarter of 2024, local handset production in Bangladesh increased slightly by 5.30% year-on-year to 60.74 lakh, according to the Bangladesh Telecommunication Regulatory Commission (BTRC). Despite this increase, production is still significantly lower than the pre-crisis levels of early 2022, when about 1 crore phones were manufactured locally. This rise in production comes amidst a bleak outlook due to the record devaluation of the taka against the US dollar.
On the other hand, the mobile manufacturing sector has faced a significant downturn in sales, compounded by the proliferation of the grey market. In 2023, local handset production dropped to 2.33 crore units, a 26.35% decrease from the previous year. This was the first decline since domestic manufacturing began in 2017. Consumer spending has tightened due to persistently high inflation, causing handset prices to rise by about 40%, further hindering industry recovery.