Despite growing local manufacturing, Pakistan's mobile phone market continues to face headwinds, as locally manufactured and assembled handset sales declined by 8% year-on-year during both the first five months of 2025 and the broader 11-month period of FY25, according to data released by the Pakistan Telecommunication Authority (PTA).
Despite a 4% year-on-year rise in production during April and May 2025, reaching 4.84 million units, overall demand remains subdued compared to 2024, when sales were buoyed by pent-up consumer buying following the easing of import restrictions, noted Sunny Kumar of Topline Securities.
Local mobile phone companies manufactured or assembled 4.84 million units during April and May 2025, reflecting a 4% year-on-year increase compared to 4.65 million units produced in the same period of 2024, according to PTA. This brings the total number of locally assembled units in 11MFY25 to 26.09 million, which, however, marks an 8% decline in sales compared to the corresponding period last year. Similarly, for the first five months of 2025, locally manufactured or assembled sales stood at 12.05 million units, also down 8% year-on-year.
Industry sources attribute the decline in overall mobile phone sales to several factors. Firstly, there is a high base effect from 2024, when the industry experienced exceptional growth due to pent-up demand after the lifting of import restrictions. Secondly, the average mobile replacement cycle has extended from 2.5 years to 3.5 years, driven by a lack of compelling new model launches. Lastly, persistently high inflation and weaker rural consumer demand have dampened overall spending on mobile devices.
Despite the volume decline, Pakistan has significantly increased its reliance on local assembly. In the first five months of 2025, 94% of mobile phone demand was met through local manufacturing and assembly, compared to the five-year (2020-2024) average of 77% and the nine-year (2016-2024) average of 52%.
Of the 12.05 million units assembled during the first five months of 2025, 54% (6.53 million) were 2G feature phones, while the remaining 46% (5.52 million) were smartphones. The top 10 locally assembled brands included Infinix (1.34 million units), VGO Tel (1.33 million), itel (1.07 million), Vivo (0.96 million), Samsung (0.67 million), Xiaomi (0.65 million), G'Five (0.64 million), Tecno (0.62 million), Nokia (0.52 million), and QMobile AL (0.5 million).
Within the listed companies, Air Link Communication (AIRLINK), which assembles Tecno and Xiaomi phones, stood out as a key player, with both brands ranking among the top 10 during the first five months of 2025.
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