Hyundai to no Longer Manufacture Cell Phones in Iran

Hyundai to no Longer Manufacture Cell Phones in Iran1

Hyundai to no Longer Manufacture Cell Phones in Iran

Khadamat Talaei Emad Company announced on Saturday that it will no longer manufacture Hyundai cell phones in Iran. From one year ago, Hyundai stopped manufacturing cell phones for Iran’s domestic markets due to economic issues. Arsalan Aslani, the CEO of Khadamat Talaei Emad Company, says the company is not intended to re-start its operations in country.

“The current recession in Iran’s digital markets has made numerous companies to stop their operations in Iran. Currently, Khadamat Talaei Emad Company is concentrating on other projects, and it doesn’t intend to re-start its manufacturing operations in Islamic Republic.” Arsalan Aslani said on Saturday.

Currency volatilities have affected Iranians’ spending power. In recent months, luxury and expensive cell phones failed to attract any buyers from Iranian domestic markets. At this time, only cheap cell phones are trending in Iran’s markets due to current economic issues in Islamic Republic. The country has been hit by economic embargoes. This has directly affected digital markets in country.

Arsalan Aslani went on to say that Khadamat Talaei Emad Company has not imported raw materials for manufacturing new cell phones from Korea in recent six months. “Our company can re-start its operations, in case we track positive signals from markets. We can manufacture around 60,000 cell phones in Iran, but it seems the market is not responding positively to our intentions.”

Aslani asked Iranian government and official organizations to provide better conditions to local investors and manufacturers. It’s worth mentioning that the mobile penetration rate stands at 110% in Islamic Republic.

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