Local Phone Manufacturers Struggle as MOBISAD Warns of Closures

Ender Öztürk

September 19, 2026

Turkey’s mobile phone manufacturing sector is facing a severe contraction as economic pressures and regulatory hurdles force several companies to exit the market. MOBISAD President Mustafa Kemal Turnacı recently confirmed that three to four local phone manufacturers have ceased operations entirely within the last few months. This downturn represents a significant shift for an industry that once enjoyed a substantial market share. As these businesses shutter their facilities, industry leaders are calling for urgent regulatory interventions to protect existing investments and ensure the sustainability of domestic production, which remains vital for the country’s technological development and employment stability.

Local Market Share Experiences a Significant Decline

Reflecting on the recent past, Turnacı noted that domestic production once accounted for nearly 65% of the mobile phone market just 18 months ago. Protecting these investments is not merely about maintaining factory output; it is essential for retaining skilled engineers and technical talent within Turkey. He emphasized that local production should not be viewed simply as an assembly process. Instead, these operations serve as a foundation for developing high-value technology and building long-term engineering capabilities that move beyond basic assembly.

The impact of this contraction extends far beyond the production lines, affecting a vast ecosystem of over 20,000 retail outlets. As the industry faces these challenges, the preservation of domestic manufacturing capacity becomes a critical economic objective to prevent further job losses and maintain technical expertise within the nation.

Regulatory Adjustments Are Requested to Enhance Production

The core of the current crisis stems from surveillance values applied to imports and restrictive installment policies on sales. While the government previously adjusted the surveillance value to $200 in 2020 to encourage local manufacturing, the effectiveness of this policy has waned over time. Turnacı suggests that increasing the surveillance value to a range of $300 to $400 would render local manufacturing significantly more attractive, potentially shifting production back to domestic facilities.

Consumer Financing Constraints Are Limiting Retail Sales

Beyond production concerns, the financial burden on consumers remains a major issue. Current regulations limit installments on mobile phone purchases, which Turnacı argues drives consumers away from legitimate, registered retail channels. He proposes that the existing installment limit of 20,000 TL should be either removed entirely or raised to 40,000-45,000 TL to stimulate market activity. According to industry representatives, such a measure would not necessarily inflate imports but would rather facilitate legal access to devices while supporting the broader retail ecosystem. Ongoing discussions with regulatory bodies aim to address these systemic issues to prevent further industry decline.

Given the current challenges facing local phone manufacturers, what measures do you believe the government should prioritize to support domestic production and improve consumer access to technology? Share your thoughts in the comments section below.