Turkish mobile phone firm Telpa to team up with Foxconn - CEO

Reuters News
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Posted: Nov 14, 2014 8:23 AM

ISTANBUL (Reuters) - Turkey's mobile phone maker Telpa plans to team up with Apple's main assembler Foxxconn to make mobile phones and tablets in Turkey, Telpa Chief Executive Sebahattin Yaman said.

"They plan to invest in making tablets and mobile phones in Turkey. Turkey is a hub for them. They are also considering moving production of other goods to Turkey," Yaman said.

Foxconn - which already assembles Telpa phones outside Turkey - is in talks with the Turkish government regarding incentives for smart phone production before making its final decision, Telpa General Manager Muzaffer Golcu said.

Taiwan's Foxconn Technology Group is the world's biggest electronic components maker.

Telpa is Turkey's largest local brand, with around a 20 percent market share in the Turkish mobile phone market through its brand General Mobile, Yaman said, speaking in Telpa's Istanbul headquarters, where around 400 employees work.

He said the company had distributed other brands until June 2013 when it began focusing exclusively on its own brand General Mobile. General Mobile sells between 150-170,000 mobile phones a month.

With its young population, Turkey's consumer technology market was worth 8.6 billion lira ($3.83 billion) at the end of the second quarter, up 18.8 percent from the same quarter last year, according to GFK market research.

On Friday Turkish Economy Minister Nihat Zeybekci said the government plans to cut back on importing electronic goods and to implement measures to boost local production.

Telpa expects 2014 revenues to be slightly below 2 billion lira and it expects mobile phone sales to rise 25 percent next year from this year, Yaman said.

(Reporting by Evrim Ergin and Seda Sezer, Editing by Jonny Hogg and Susan Thomas)