Islamabad, News desk Chinese mobile phone manufacturer iTel is reportedly grappling with a significant business downturn in Pakistan, according to exclusive reports. Sources within the company indicate that agreements made with three Pakistani manufacturing firms in early 2024 to produce over PKR 10 billion worth of mobile phones have backfired due to a combination of the company’s internal policies and intense market competition.
The report suggests that iTel’s mobile phone sales have stagnated, leaving its Pakistani manufacturing partners burdened with unsold inventory exceeding PKR 10 billion. This situation has allegedly resulted in losses amounting to hundreds of millions of rupees for these local companies.
Insiders at iTel point towards unsuccessful administrative changes implemented after 2024 as a key factor. It is claimed that new management personnel made unilateral decisions that led to substantial financial losses for the company. Furthermore, allegations of inexperience and corruption have surfaced against current administrative officers, who are accused of favoring one local partner at the expense of three other distributors, causing them billions in losses and severely damaging iTel’s overall business in Pakistan.
The broader Pakistani mobile phone market has also been facing a crisis for the past six months. This downturn is attributed to both local and Chinese mobile phone companies importing excessive stock, leading to an oversupply in the market, coupled with a decrease in consumer demand for mobile phones in Pakistan.
This demand-supply mismatch has significantly impacted the sales of many Chinese mobile phone companies in the country. iTel, having already manufactured a large volume of devices, is now struggling to offload this stock, consequently harming its local manufacturing partners.
One of the affected manufacturing partners confirmed that a substantial amount of stock produced months ago remains in their warehouses. Repeated attempts to reach iTel’s Sales Head in Pakistan, Asim Jamil, for a satisfactory response have been unsuccessful. Sources suggest that iTel’s representative in Pakistan, Mr. Vicky, and other administrative officials are aware of the situation but may not be prioritizing it due to the company not having directly invested the capital for the manufacturing.
Adding to the woes, it has been reported that iTel has allegedly violated agreements with its channel partners for the second time, causing severe financial distress to those involved in manufacturing its mobile phones. Another manufacturing partner claimed to have over PKR 3.5 billion worth of iTel devices in their warehouses, fearing massive losses if this stock is not sold soon. They indicated that they are considering direct sales to the market to mitigate the situation and are attempting final negotiations with iTel. However, they also echoed the sentiment that an individual named Jamil within iTel is purportedly favoring one partner to the detriment of others.
Representatives from mobile phone sales companies, distributors, and dealers have corroborated the sharp decline in demand for iTel mobile phones in recent months, noting a lack of significant effort from the company to boost sales.
Several dealers have accused the current iTel management of being engaged in activities other than focusing on mobile phone sales. One major dealer stated that the current head of the company is primarily focused on drawing a large salary with little interest in increasing sales.
A major channel partner and distributor for iTel revealed that the three major local manufacturing companies have approached Pakistani dealers and distributors, offering them the stock directly at significantly reduced prices. Negotiations between these parties are reportedly underway.
When contacted by Flare Magazine, iTel’s senior official in Pakistan, Asim Jamil, stated that they have a commercial agreement with their channel partners and are not obligated to disclose their actions. He confirmed that iTel has agreements with various companies for mobile phone manufacturing in Pakistan, considering it an internal matter.
Meanwhile, heads of other mobile phone manufacturing companies have confirmed that iTel has billions of rupees worth of stock in the market, with an additional over PKR 10 billion worth of mobile phones in manufacturers’ warehouses. They warned that if iTel does not take action to move this stock, it might be sold off at very low prices in the market.
This developing situation raises concerns about the future of iTel’s operations in Pakistan and the financial stability of its local manufacturing partners amidst the current challenging market conditions.
Key Points:
* iTel reportedly faces a major business crisis in Pakistan in May 2025.
* Over PKR 10 billion worth of iTel mobile phones are stuck in stock with Pakistani manufacturing partners.
* This overstock is attributed to iTel’s alleged poor policies and intense market competition.
* Failed administrative changes within iTel after 2024 are cited as a contributing factor.
* Allegations of inexperience and corruption within iTel’s management have surfaced.
* The overall Pakistani mobile phone market is experiencing a downturn due to oversupply and reduced demand.
* iTel’s manufacturing partners are considering direct sales to recover potential losses.
* Negotiations are reportedly ongoing between local manufacturers and distributors for direct stock sales.
* iTel’s senior management in Pakistan has declined to comment in detail, citing internal agreements.
* The situation could lead to significant financial losses for iTel’s partners and potentially impact iTel’s market position in Pakistan.
This is a developing story, and further updates are expected as the situation unfolds.
