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Smartphone imports plummeted in FY 2079/80, premium phones less attractive an option for buyers

Dinesh by Dinesh
July 26, 2023
in Gadgets Nepal, Nepal
Reading Time: 3 mins read
Mobile phone import in Nepal

Smartphone imports saw an incredible slump in Fiscal Year (FY) 2079/80. As per the customs department, the year witnessed a 73% decrease in smartphone import as premium phones were less popular an option for Nepali buyers, the latest data from the Customs Department highlight.

According to the statics, a total of 15 lakh 59 thousand smartphones worth Rs 24.39 billion were imported in FY 2079/80. It is a staggeringly low volume of devices. In FY 2078/79, Nepali traders brought in 57 lakhs, 63 thousand units of smartphones for Rs 40.89 billion. The low volume of imports also affected the government revenue. Last Fiscal Year, Nepali Government generated Rs 4.55 billion from customs duties. In FY 2078/79, the federal government raked in Rs 6.54 in revenue.

Smartphone importSmartphone import 2079/80Smartphone import FY 2078/79
Total spendingRs 24.39 billionRs 40.89 billion
Unit of smartphones15.59 lakhs57.63 lakhs
Government revenueRs 4.55 billionRs 6.54 billion

Check out: Global smartphone market declined by 11% in Q2 2023, but there are signs of a recovery

Premium phones saw extremely low sales

Nepal is predominantly a mid-range smartphone market. However, in FY 2079/80, premium and even mid-range device sales faced a shun. Traders say that mobile phone imports saw skyrocketing demand during the Covid-19 pandemic. Restrictions, online work, and learning forced people to buy mobile phones more than ever. But with restriction easing, the phone ban, and economic factors gradually plummeted smartphone transactions.

Mobile Phone Importers’ Association Deputy Chair Sanjay Agrawal says that the industry is seeing a 60% fall in the smartphone business. While the chapter phone business hasn’t suffered much, mid and high-end phone is in a grave impact which he attributes to the low purchasing power of consumers. He says, that the sales of worth over Rs 20,000 is stagnant. You may also like to read: Best Phones Under Rs. 20000 In Nepal | Latest 2023 Update

File image for representation

But while smartphone trading has witnessed an extreme low, containing the grey phone market remains another area of worry. Nepal Telecom Authority (NTA) has implemented Mobile Device Management System (MDMS) from Jestha, 2080 BS however its full effect remains in question. The authority has not yet been able to blacklist grey or unregistered phones. Earlier, the authority urged the public to register their phone by Ashar 01. It is known that very few people did phone registration in NTA MDMS. Agrawal adds that due to the lack of MDMS’s effective operation, the market still is selling illegitimate phones.

Also read: MDMS Registration Cost for iPhone, Android, and Bar phone

What do you think was the most immediate cause for low smartphone imports in FY 2079/80? You can share your opinion in the comments below.

Follow us on Facebook, Twitter, and Viber to get the latest news, and information about Nepal Telecom, Ncell, Smart Cell, ISPs, mobile apps, and phones in Nepal.

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Dinesh

Dinesh

An experienced tech writer covering news mostly on telecommunication, internet, latest tech & trends, and Gadgets. Being a technophile, I am particularly fascinated by the evolution of mobile networks in Nepal from legacy networks (2G, 3G) to 4G (with VoLTE, VoWiFi, eSIM) and the prospects of the upcoming 5G, and equally enthralled by the development of internet from the dial-up connection to the 2 Gbps XGS-PON fiber broadband technology and their transformative impact in the country.

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