Mobile phone market in Bangladesh nears Tk 20,000 crore

Easy access to internet and rapid technological advancement have transformed lifestyles in Bangladesh. Keeping pace with the developed world, the number of mobile phone users in the country has surged dramatically.

According to market insiders, around five million handsets are sold annually, pushing the total yearly market size to nearly Tk 20,000 crore.

Local production of mobile phones has increased significantly alongside rising imports of smartphones from abroad. Over the past decade, the country has moved steadily towards a new digital reality.

Market analysis shows that about 75 per cent of total sales come through official channels. The remaining one-fourth, worth roughly Tk 5,000 crore, is dominated by unofficial handsets.

Smartphones now drive the Bangladesh mobile market, though feature phones still hold strong in unit sales. In the first quarter (July-September) of the current fiscal year 2025-26, sales of smartphones and feature phones were almost equal in volume. In value terms, however, smartphones account for nearly 80 per cent of the market.

Up to September 2025, over 10 million feature phones were manufactured locally. During the same period, 6.736 million 4G phones and 250,000 5G phones were produced.

President of Mobile Industry Owners Association of Bangladesh (MIOB) Zakaria Shahid told The Daily Campus: “The smartphone market fluctuates quarter by quarter. In the latest quarter, we saw a 50-50 split between feature phones and smartphones in unit sales. More than 1.2 million sets were sold in total. In monetary terms, though, smartphones dominate by a wide margin.”

Import data reveal that no 2G feature phones have been brought into the country in the last two years. The last recorded import was only 15,000 units in September 2023. Domestic factories now fully meet feature phone demand. The picture is reversed for smartphones.

Low-to-mid range smartphones most popular

Buyers now prioritise battery life, refresh rate and camera quality. Handsets priced between Tk 15,000 and Tk 25,000 enjoy the highest demand. Retailers say students, daily users, workers and low-to-middle income groups see this price band as the best balance of features and affordability.

Sabbir Ahmed, a retailer in an upazila town, told The Daily Campus: “Phones from various brands in the Tk 15,000-25,000 range are flying off the shelves. Students and working people want good devices at this price. Many students need them for online studies and courses. Locally, they prefer phones below Tk 20,000. Around 70-75 per cent of our total sales fall in this segment.”

Sumaiya Khatun, a private sector employee in Rangpur, said: “My mother’s phone suddenly stopped working. I browsed online and bought a smartphone within Tk 20,000 that offered good battery, camera and processor. Quality devices in this range have made purchasing much easier.”

Local production rises but import dependence remains

Low-end smartphones are assembled locally using imported components, and production has grown sharply in recent years. By September 2025, over 10 million feature phones, 6.736 million 4G and 250,000 5G phones were manufactured. In 2024, the figures were 18.7 million feature phones, 8.139 million 4G and over 330,000 5G units.

Imports also continue. From January to September 2025, 103,698 4G and 2,144 5G phones were imported. In 2024, the numbers were 79,330 4G and 6,253 5G units.

Brand rankings

According to German data platform Statista, Xiaomi leads the Bangladesh market in 2025 with slightly over 18 per cent share, thanks to strong specifications at affordable prices. Samsung follows closely with over 17.5 per cent, Vivo holds around 12 per cent, Realme slightly over 10 per cent, Oppo a little above 9 per cent, Tecno and Infinix around 4 per cent each, and Apple nearly 5 per cent.

In 2024, Xiaomi topped with 18.68 per cent, followed by Samsung (18.35 per cent). In 2023, Samsung led with 21.05 per cent.

Honor, Google Pixel, Walton and Symphony are also gaining ground. Honor’s budget and mid-range models like X9c and X6c have become particularly popular for long battery life, improved cameras and powerful processors at competitive prices.

Head of Business at Honor Bangladesh Abdullah Al Mamun said AI-integrated models and 5G-capable phones are seeing rising demand, especially in the Tk 20,000 range. He noted that sales of Honor have grown noticeably over the past two years due to local assembly and attractive pricing.

Unofficial phones pose major challenge

Unofficial handsets smuggled in luggage and sold at lower prices remain a headache. Industry sources estimate they cause annual revenue loss of around Tk 2,000 crore and raise digital security concerns.

MIOB President Zakaria Shahid stressed that the National Equipment Identity Register (NEIR) system, set to launch on 16 December, will help curb illegal imports if implemented properly. He urged a change in consumer mindset, saying people who can afford unofficial phones can equally buy official ones.

Managing Director of Smart Technologies Limited Zahirul Islam, local producer of Honor, said legal business has become easier and investment is rising, but the iPhone market still depends entirely on illegal imports, putting pressure on legitimate players.

Meanwhile, Mobile Business Community Bangladesh has alleged attempts to create a new syndicate around NEIR implementation, claiming it could exclude 60-70 per cent of traders. The group has demanded restructuring of the system and round-table discussions before rollout.

Despite challenges, growing 5G adoption and AI features signal a vibrant future for Bangladesh’s mobile phone market, provided policy support strengthens local manufacturing and curbs unofficial trade.