Turkey is becoming a phone production base!

While many technology companies have recently announced their investment decisions in Turkey, these investments have provided employment opportunities for many people, in addition to their contribution to the country’s economy.

The investment journey of digital technology companies in Turkey, which started with Huawei’s R&D center about 10 years ago, has continued with Xiaomi, OPPO, Samsung, TECNO Mobile and TCL recently. Realme and Vivo also joined the companies that announced their investment decision in Turkey.

While smartphone manufacturers are clustering especially in and around Istanbul, some of the companies that turned to entry-level models in Turkey at the first stage started to offer their phones produced in Turkey to the domestic market. These phones, which were released as domestic production, also come to the fore with their more affordable price provided by the taxation advantage.

Xiaomi chose Turkey as the 4th country in the world where it produces

According to the information compiled by the AA correspondent, Xiaomi, the world’s 3rd largest phone manufacturer, started phone production in Turkey with the factory it opened in Istanbul in March.

Investing 30 million dollars in Turkey, the company chose Turkey as the 4th country in the world where it produces. With the said investment, the company will employ approximately 2,000 people.

The company, which started domestic production for the first time with the Redmi 9C model, in addition to this model, offered the Redmi 9T model with the domestic production label.

OPPO also offered its second phone for sale with the phrase “Made in Turkey”

OPPO, China’s largest phone manufacturer, announced that it started production in a factory with a closed area of ​​12 thousand square meters in Tuzla in March.

After OPPO A15s, the first model produced in Turkey, OPPO presented its second phone, Reno5 Lite, which came with the phrase “Made in Turkey” to users.

Turkish-made mobile phones from Samsung

South Korean technology giant Samsung also started production in Turkey.

Having signed an agreement with Atmaca Elektronik, which produces under the “Sunny” brand, Samsung’s Turkish-made mobile phones began to take their place in stores with the inscription “Assembled in Turkey”.

TECNO Mobile

Chinese smartphone giant TECNO started production in Turkey with an investment of 35 million dollars.

TECNO Mobile’s Turkey Country Manager Hank Li stated that they aim to create employment for approximately 1,000 people at the factory in Pendik, Istanbul, and stated that they plan to increase their investments in Turkey in the long term.

TCL aims to increase phone manufacturing capacity to 1 million by 2022

Technology giant TCL also preferred Turkey. Joining forces with Arçelik, TCL started smartphone production.

The company, which started production with the “TCL” brand in Çerkezköy OSB, located in Kapaklı district of Tekirdağ, plans to produce 450 thousand phones annually in the first stage, and aims to increase its phone production capacity to 1 million in 2022.

Vivo and Realme will also produce in Turkey

Chinese technology company Vivo also announced that it will lease a facility in Gebze and make production in Turkey.

Smartphone manufacturer Realme also announced on its social media account that they will start production in Turkey.

Huawei’s second largest R&D Center outside of China is in Turkey

Technology company Huawei, which started its investments in Turkey earlier, announced that it had invested 520 million TL in Turkey in 10 years.

In his statement in February, Huawei Turkey General Manager Jing Li emphasized that Turkey is of great importance for Huawei as Huawei’s second largest R&D Center outside of China.

12 million phones sold in Turkey in 2020

According to the information compiled by the AA correspondent from the Mobile Communication Tools and Information Technologies Businessmen’s Association (MOBISAD), Turkey is in the position of being a big market for phone manufacturers.

While 10 million 500 thousand official phones were sold in Turkey last year, this figure rises to 12 million when unregistered data are added.

“One of the most important reasons why Turkey is preferred is that it is an attractive market”

Istanbul Medipol University Faculty of Business and Management Sciences Lecturer Assoc. Dr. Serhat Yüksel said that one of the most important reasons why technology companies prefer Turkey is that it is “evaluated as an attractive market”.

Noting that phone sales have reached very high levels with the influence of the young population in Turkey, Yüksel stated that the big phone companies are also aware of this situation and want to enter this market.

Referring to the developments in the exchange rate, Yüksel said:

“The US dollar appreciated against the Turkish lira. As a result, production costs in Turkey decreased compared to other countries. In this case, these companies preferred Turkey to produce. It brought the application of surveillance in imports. In this framework, it was aimed to protect the domestic manufacturer. With this application, a surveillance application was introduced in imports for mobile phones with a price below a certain amount. This situation caused the prices of cheap phones to rise. Therefore, big phone companies chose Turkey as a place of production. It aimed to reduce these costs by choosing the . Lastly, Turkey’s geographical location also attracts foreign investors. Due to its proximity to Europe, a production to be made in Turkey provides investors with a significant cost advantage. preferring Turkey instead of China as a production center. It can significantly reduce stick costs.”

“Many of our citizens are offered job opportunities”

Assoc. Dr. Emphasizing that investments have many advantages for Turkey, Serhat Yüksel said, “First of all, thanks to these investments, job opportunities are offered to many of our citizens. Therefore, this situation contributes to reducing the unemployment problem, which is one of the biggest problems in the world.” he said.

Pointing out that many suppliers can increase their business volumes thanks to the investments, Yüksel said, “When big telephone companies start production in Turkey, they will again supply many products they need from Turkish companies. This situation will increase the sales volumes of the relevant companies. On the other hand, the biggest of these investments is “One of the advantages of this technology is the arrival of technology to our country. Thanks to these investments, Turkish engineers and technicians will also be able to learn how this technology is applied. I believe that this situation will provide serious benefits to our country in the long run.” he said.

Emphasizing that the investments will significantly contribute to Turkey’s achievement of the Sustainable Development Goals, Yüksel said:

“At the moment, Turkey has been successful in attracting these companies to its country. However, another important issue is the increase and continuity of these investments. What can be done about this issue? First, some support should be provided to these companies by the state. In this context, tax The cost advantage of producing in Turkey should be preserved thanks to some incentives such as advantage and location support. In other words, there will be no reason for companies with these advantages to go to other countries. These issues will not only ensure that these companies stay in Turkey, but also that other companies “This will also help them choose Turkey. This will also help our country’s economic development to a great extent.”