The mobile phone market in Bangladesh is experiencing a significant downturn, with sales plummeting by 21 percent compared to the previous year, according to industry insiders. Importers and traders attribute this decline to the dwindling purchasing power of consumers, which has greatly reduced their ability to invest in new phones.

The mobile phone industry in Bangladesh had witnessed robust growth since 2016, with a notable year-on-year increase of 35 percent in both feature phones and smartphones. This growth had led to a surge in the presence of domestic and foreign phone brands in the market, accompanied by a notable uptick in imports.

However, this trend has now reversed. Over the past two years, spanning from 2022 to 2023, the mobile phone market has experienced a downturn in sales, signaling a significant departure from previous growth trajectories. Vendors attribute this decline to the diminishing purchasing power of consumers, who now view smartphones as more of a luxury than a necessity amidst rising prices of essential commodities.

Rizwanul Haque, Vice President of the Bangladesh Mobile Phone Manufacturing Association, acknowledged the downward trend in sales, noting that the market is no longer expanding but rather contracting. This shift in consumer behavior poses a potential threat to the mobile phone industry, particularly in light of substantial investments made in smartphone production.

Stakeholders are concerned that if this downward trend persists, it could have adverse effects on both the market and the economy at large. Analysts caution that prolonged stagnation in the mobile phone industry may impede efforts to realize the vision of establishing a technologically advanced Bangladesh.