Bangladesh Smartphone Shipments May See Highest-ever Annual Decline in 2023, Modest Growth Expected in 2024

  • Bangladesh’s smartphone shipments are expected to fall 19% YoY in 2023, dipping for the second time in the last three years.
  • High installed base opportunity, easing economic pressures, rise in the value of local currency, and digitalization will boost the smartphone market in the coming years.
  • The market is expected to grow by 17% YoY in 2024.

Bangladesh’s smartphone shipments are expected to fall 19% in 2023, their highest-ever annual decline, according to the latest research from Counterpoint’s Market Outlook. Also, this will be the second consecutive year of a double-digit decline. Economic headwinds in the country, including persistent high inflation and currency depreciation, are affecting the smartphone market. An increase in the value-added tax (VAT) on handsets and a growing grey market are among the other factors contributing to the decline.

A chart showing Bangladesh Smartphone Market Shipments between 2020-2024

More than 98% of Bangladesh’s smartphone demand is met by its strong local manufacturing base, with components mostly imported from China. However, at the beginning of 2023, the Russia-Ukraine war affected the country’s component supply chain. At the same time, the rise in the dollar exchange value caused by rising inflationary pressures increased the cost of smartphone components by more than 25%. Besides, the VAT for manufacturers jumped to 7.5% for the July 2023-June 2024 financial year from 5% in the previous financial year, along with the addition of 5% VAT for distribution and retail revenue. This jump in smartphone costs slowed down the feature phone-to-smartphone migration.

To compound matters, many OEMs are facing difficulties in opening letters of credit (LCs) with domestic and central banks. Businesses have been asked to pay up to 100% of their import payments in advance by domestic banks even as central banks have taken belt-tightening measures due to rising pressure on the country’s foreign exchange reserves and volatility in the exchange market. Also, assemblers and manufacturers in Bangladesh have been affected by the invasion of grey-market smartphones. As a result, the government is implementing the National Equipment Identity Register (NEIR), a system aimed at stopping the unofficial entry of mobile handsets from other countries.


We believe the pent-up demand for smartphones due to delayed purchases can be fulfilled in 2024 as the macro environment started to show improvements during the second half of 2023. The dollar exchange rate is expected to ease, resulting in a decline in the cost of components and less difficulty in opening LCs. Currently, Bangladesh has an installed base of nearly 60 million smartphones, which will reach 65 million by 2024, mainly driven by first-time smartphone buyers.

In terms of smartphone sales, online share is still less than 10%, which is forecasted to reach 16% by 2024 as consumer trust in e-commerce continues to rise. There are mainstream large e-commerce players for smartphones such as Daraz, Pickaboo and Gadget & Gear that will drive online sales for smartphones as digitalization improves. The smartphone industry is a vital tool for Bangladesh’s digital transformation. It helps in achieving the ‘Smart Bangladesh’ vision by expanding access to digital services. Going forward, the availability of digital services via high-speed networks will be the main driver of smartphone market growth in Bangladesh.

Despite the expected decline in 2023, Bangladesh’s smartphone market has been resilient and is performing better than many other countries in Asia. The high potential installed base, a huge feature phone-to-smartphone migration, availability of new use cases, development of the supply chain and digitalization will continue to grow the market in the longer term. We expect Bangladesh’s smartphone market to grow 17% YoY in 2024.


Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media, and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects, and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.

Follow Counterpoint Research


Related Posts

Counterpoint research is a young and fast growing research firm covering analysis of the tech industry. Coverage areas are connected devices, digital consumer goods, software & applications and other adjacent topics. We provide syndicated research reports as well as tailored. Our seminars and workshops for companies and institutions are popular and available on demand. Consulting and customized work on the above topics is provided for high precision projects.

Term of Use and Privacy Policy

Counterpoint Technology Market Research Limited


In order to access Counterpoint Technology Market Research Limited (Company or We hereafter) Web sites, you may be asked to complete a registration form. You are required to provide contact information which is used to enhance the user experience and determine whether you are a paid subscriber or not.
Personal Information When you register on we ask you for personal information. We use this information to provide you with the best advice and highest-quality service as well as with offers that we think are relevant to you. We may also contact you regarding a Web site problem or other customer service-related issues. We do not sell, share or rent personal information about you collected on Company Web sites.

How to unsubscribe and Termination

You may request to terminate your account or unsubscribe to any email subscriptions or mailing lists at any time. In accessing and using this Website, User agrees to comply with all applicable laws and agrees not to take any action that would compromise the security or viability of this Website. The Company may terminate User’s access to this Website at any time for any reason. The terms hereunder regarding Accuracy of Information and Third Party Rights shall survive termination.

Website Content and Copyright

This Website is the property of Counterpoint and is protected by international copyright law and conventions. We grant users the right to access and use the Website, so long as such use is for internal information purposes, and User does not alter, copy, disseminate, redistribute or republish any content or feature of this Website. User acknowledges that access to and use of this Website is subject to these TERMS OF USE and any expanded access or use must be approved in writing by the Company.
– Passwords are for user’s individual use
– Passwords may not be shared with others
– Users may not store documents in shared folders.
– Users may not redistribute documents to non-users unless otherwise stated in their contract terms.

Changes or Updates to the Website

The Company reserves the right to change, update or discontinue any aspect of this Website at any time without notice. Your continued use of the Website after any such change constitutes your agreement to these TERMS OF USE, as modified.
Accuracy of Information: While the information contained on this Website has been obtained from sources believed to be reliable, We disclaims all warranties as to the accuracy, completeness or adequacy of such information. User assumes sole responsibility for the use it makes of this Website to achieve his/her intended results.

Third Party Links: This Website may contain links to other third party websites, which are provided as additional resources for the convenience of Users. We do not endorse, sponsor or accept any responsibility for these third party websites, User agrees to direct any concerns relating to these third party websites to the relevant website administrator.

Cookies and Tracking

We may monitor how you use our Web sites. It is used solely for purposes of enabling us to provide you with a personalized Web site experience.
This data may also be used in the aggregate, to identify appropriate product offerings and subscription plans.
Cookies may be set in order to identify you and determine your access privileges. Cookies are simply identifiers. You have the ability to delete cookie files from your hard disk drive.