Page 59 - IRANRptAug22

Iran’s parliament agrees plan to direct mobile phone import duties into local smartphone manufacturing
and package delivery services in Iran, a country of 85mn.
Inventiva, in a recent assessment of the top 10 potential unicorns in Iran, noted that Snapp!, starting off as Taxi Yaab in 2014, “did not have to market taxi culture to its consumers” as “Iranians were accustomed to taking unauthorized, unofficial cabs”. However, it added: “The software fell short of including a regular Iranian commuting feature into its product: haggling.”
It was found that “customers preferred the traditional haggling method with drivers to establish their fares. So the team improved the product and relaunched it in 2015 as Snapp.”
South African telecommunications company MTN is the largest international investor in Snapp!, with 43% ownership.
Inventiva also reported: “Snapp switched to a ‘progressive web app’ model when Apple and Google Play deleted Iranian apps [under pressure from the US as it re-applied heavy sanctions to Iran]. Clicking on it now brings you to a page in a web browser that nearly resembles the original. While there are certain disadvantages to this format (no push notifications, limited offline presence), it has a few options. To break its dependence on Google Maps, Snapp decided to build an in-house navigation system when Google withdrew its services from Iran in late 2017.”
The other potential unicorns listed by Inventiva are Iran’s ‘Amazon’, namely the Digikala e-store, the Cafe Bazaar smartphone app market, video-sharing website Aparaat, Navaar Audiobooks, online car marketplace Carvanaro, online listing platform for local service providers Donro, internet-based learning and teaching platform Webyad and second-hand goods website Divar.
Revenue raised from mobile phone import duties will be invested in Iranian smartphone manufacturing under a proposal approved by Iran’s parliament, ICTNA reported on March 7.
Iran has for the past decade attempted to successfully localise mobile phone production, but intense competition from Korean and Chinese tech juggernauts have made the task unviable, with local projects suffering from limited production scales and a lack of latest technology. Iranian phone manufacturers ultimately ended up with redundant stock, with buyers typically opting for more expensive smartphone brands like Xiaomi, Samsung and Huawei.
As part of an agreed budgetary amendment passed by lawmakers, the customs duty on imported mobile phones worth more than $600 was set at 12%. The Ministry of Industry, Mines and Trade’s Industrial Research and Development Support Fund will be in charge of supporting the production of Iranian smartphones and microelectronics with revenues accrued from duties charged on mobile phones.
Foreign electronic manufacturers that enter Iran generally set up in dedicated special economic zones, where they avoid heavy import duties and create employment in remote areas of the country. Television production deals with Samsung and LG have been somewhat successful and have enabled the companies to lower their product pricing for the Iranian consumer.
59 IRAN Country Report August 2022 www.intellinews.com