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Iranian phone; When the localization craze takes over the mobile market

Among the various companies that cooperate in the Iranian phone production project, as mentioned earlier, Daria Mobile has unveiled its first phone. According to this company, Daria Band phone is made in China. Therefore, it seems that cooperation with foreign mobile phone manufacturing companies is considered as a production method in the indigenous mobile phone production project.

Of course, cooperation with other countries in the field of mobile phone production is common in the world. Apple also takes help from different countries like China to produce the iPhone, but there are differences in the production method. With an OEM (Original Equipment Manufacturing) contract, Apple provides the Chinese company with all the parts needed to make the iPhone, and designs the phone itself so that the final product is the version ordered by Apple.

There is another way to cooperate with other countries in the field of phone production. In this way, the ordering company of the phone has the right to participate in the production according to the ODM (Original Design Manufacturing) contract. In an ODM contract, the customer uses the existing designs of the manufacturer but has the option of making minor changes to the phone. Based on the image published of the design and box of Daria Mobile phone and the mention of Made in China on the phone box, it seems that this company has used the ODM contract to produce the phone and has only done parts of the product design.

Another point is about the native operating system; It was previously announced that for the time being and until the Iranian operating system is made and released, domestically produced phones are going to use the Chinese operating system. The fact that the country’s localized phones are either made in China or use a Chinese operating system caused some rumors about the possibility of creating more restrictions through these products for the users of these phones. Due to the fact that the authorities have not given more detailed explanations about native phones, it is not clear how true these statements are.

Will things change?

Doubts and speculations about the localization of mobile phones include other things. Some news in the country’s mobile industry also strengthens these rumors and suspicions. For example, the issue of assembly of some models of Samsung phones such as A12 as well as Nokia feature phones has been raised for some time and reliable sources from the industry have confirmed it. Rumors indicate that these phones are opened and assembled before entering the country and are introduced to the market as fake versions by some companies. At the same time, the import of this model was also banned and they did not enter the country anymore.

In spite of such a history and alongside it, the prohibition of iPhone imports, the increase in customs tariffs for commercial and passenger imports of phones above 600 dollars, and the increase in the cost of registering mobile phones, which can significantly increase the final price of these goods, are all reasons that cause concern for It is the future of the country’s mobile industry and market.

Although the Minister of Communications had previously said that the goal of this ministry would be to produce smartphones under $100, the Daria Band mobile phone costs around 10 million tomans. Considering that this phone faces tough competitors like Samsung’s A34 and Xiaomi’s Redmi note 12 pro 5G in this price range, how likely are phone buyers to prefer a new brand to a seasoned and experienced competitor like Samsung?

Especially considering that the camera of the two mentioned phones from Samsung and Xiaomi have optical image stabilization, the Samsung A34 phone receives four years of updates (while the Daria company phone has updates for another two years) and the Samsung company phone between 200 It is up to 300,000 tomans cheaper than Daria Band. Considering these differences, it seems that the entry of Iranian phones into the mobile market with such prices is not very reasonable and justifiable.

Therefore, either Iranian phones should have a lower final price or the final price of foreign phones should be higher than the current prices. In the first case, companies have to lower the quality of the phone in order to reduce its price. Of course, in this case, it is unlikely that the buyer will be willing to buy a low-quality phone. In the second case, the price of the phones should increase so that the consumer prefers the Iranian phone compared to the expensive foreign phone.

In this situation, the buyer no longer chooses on his own, but because of the high price of the phones, he has no choice but to choose a phone that fits his budget and financial conditions.

Another possible way to create demand for Iranian phones in the people is to empty the market of competitors. Although this possibility is pessimistic and strict, it has happened at least in the field of household appliances and automobiles, and there have been examples even in the field of technology. One of the goals of making foreign software, applications and platforms unavailable is that their domestic and native examples have the opportunity to grow and people migrate from them to foreign apps and platforms.

It may not be unlikely that the iPhone 14 will not be registered one day, and the other day it was announced that the import of Apple brand phones from the iPhone 14 onwards is prohibited, and the reason for this decision was never officially announced. Companies are not allowed to import foreign phones into the country.

Emptying the market of competitors will make people short of modern phones and people will be forced to buy a weaker product by spending the same amount. The whole point is that the products must have high quality in order to be able to compete with foreign competitors; Not that they will be out of reach of people by increasing tariffs, banning imports or lack of registration, and these tricks will become a way to sell Iranian phones and their success in the market. Therefore, there is no opposition to the idea of ​​domestic phone production, and the only issue is that the competitive environment of the market and the presence of world-class products do not fall victim to the Iranian phone production project.

In addition to this challenge, one of the main weaknesses of Iranian phones is the issue of software support for these phones. Iranian phones either did not receive software updates or their updates were very limited and incomplete, and this issue has been one of the main challenges of domestic production in recent years.

In addition to fixing possible security holes, the software update also adds new features to the phones. This part is one of the most expensive unseen parts of the phone manufacturing companies in the world. Therefore, one of the serious concerns in the issue of weak software support is endangering the security of users’ information due to not receiving software updates that have been available for Iranian phones and have not been fixed.

Putting together the events and decisions and orders of the past few months brings to mind various possible scenarios. The analysis of the conditions, news and hearsays has caused market activists and experts to people to imagine that the country’s mobile industry will undergo changes in the coming months and the situation will change.


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