Domestic mobile phone production in Iran needs support

Business Materials 21 September 2020 09:32
Domestic mobile phone production in Iran needs support

TEHRAN, Iran, Sep.21


Iran can produce and assemble mobile phones however it requires support including allocation of foreign currency rate for importing mobile parts, said the Head of the Market Regulation Commission in Iran's Mobile Importers Association.

"Importing mobile phones would be more profitable than domestic production until producers could obtain foreign currency for importing mobile phone parts and hardware," said Reza Ghorbani, Trend reports citing ISNA.

"There are two working groups in the Ministry of Information and Communications Technology of Iran and Industrial Development and Renovation Organization of Iran that seek to support domestic mobile production," he said.

"The first stage is to cooperate with manufacturers of mobile phone parts and expand studies on software and applications," he noted.

"Iran can produce mobile phones with 5G technology however the production depends on the import of parts and allocation of foreign currency for it," he added.

"Private sector can produce 2 million mobile phones but it would be possible if the costs would be lower than imports," he said.

"The mobile phone import tariff is low, and although the private sector is capable of producing mobile phones there should be measures including tax exemption, insurance, reducing customs fees and allocation of official foreign currency rate to support producers," he said.

"Producers have to pay insurance and employee's salaries alongside importing parts to produce and but importers do not have these extra costs, " he said.