Domestic production is shrinking in the mobile phone sector

Mustafa Kemal Turnacı, President of the Association of Mobile Communication Vehicles and Information Technologies Businesspeople, stated that domestic production in the mobile phone sector continues to shrink and announced that some companies have recently terminated their production.

Production and Employment Loss

It was reported that three to four companies decided to terminate their domestic mobile phone production in the last two to three months. It was stated that these developments in the sector increase production and employment loss.

Recalling that the market share had reached up to 65 percent in the past, it was emphasized that protecting existing investments is critical for the continuity of qualified human resources.

Main Causes of the Contraction

It was explained that the background of the contraction in the sector includes the level of surveillance practices and installment restrictions applied to mobile phone sales.

It was noted that increasing the surveillance value applied in imports is supportive, but remains insufficient under current conditions and needs to be raised to higher bands.

Financing and Installment Limit

It was stated that consumers experience financing problems in accessing mobile phones and that current installment limits need to be re-regulated.

It was expressed that increasing the installment limit will reduce informality and make it easier for citizens to access reliable technology.

Price Increases and Employment

It was conveyed that there has been an increase of around 30 percent in mobile phone prices since the beginning of the year. Information was shared that the loss on the production side has dropped to figures in the thousands.