Islamabad News Desk: Exclusive Report: Leading Pakistani mobile phone distribution companies have reportedly ceased business operations with Chinese mobile phone manufacturer iTel over allegations of a massive stuck inventory worth over 10 billion Pakistani Rupees. Sources within iTel Pakistan have indicated that this frozen stock has resulted in billions of rupees in losses for the local partners.
In a bid to mitigate the crisis, iTel allegedly attempted to offload the substantial inventory to another local mobile phone company. However, sources reveal that this Pakistani company declined the offer to acquire iTel’s stock.
Market insiders suggest that the significant financial strain on Pakistani distributors has led to a widespread refusal among mobile phone dealers to purchase further iTel stock. Consequently, the prices of iTel mobile phones have plummeted drastically.
A prominent mobile phone dealer, speaking on condition of anonymity, accused the Chinese company of perpetrating a second instance of “fraud” in Pakistan under the iTel brand, citing flawed policies and inexperience.
Furthermore, sources within iTel reportedly confirmed the struggle to liquidate the unsold billions-worth of mobile phone stock. Another Pakistani company, identified as Barq Telecom, was also approached to take on the inventory but reportedly refused.
A major Karachi-based mobile phone dealer stated that iTel mobile phone sales have stagnated nationwide, while the company had manufactured an excess of devices in Pakistan, far exceeding market demand. This overproduction is cited as the primary reason for the financial losses incurred by the Pakistani distribution partners.
The unfolding situation presents a significant challenge for iTel’s presence in the Pakistani market and raises serious concerns about the financial stability of the affected local distributors. The industry awaits further developments on how iTel intends to address this crisis and compensate its Pakistani partners for the substantial losses incurred.
