Local mobile phone production declines 13% in FY25

ISLAMABAD: According to the latest data released by the Pakistan Telecommunication Authority (PTA), local mobile companies manufactured or assembled 2.19 million units during June 2025, down 49 percent year-on-year compared to 4.26 million units in June 2024.

This decline is attributed to the high base effect from last year, driven by excessive pre-buying. Compared to the average of the first five months of 2025, mobile phone sales are down 10 percent, according to a research report by Topline Securities released on Thursday morning.

This brings the total number of locally manufactured or assembled units in FY25 to 28.28 million, reflecting a 13 percent year-on-year decline.

According to Topline Securities, the drop in mobile phone sales is due to the following factors:

The industry saw exceptional sales in June 2024 following an increase in GST on mobile phones, which shifted from a fixed amount to 18 percent. Pent-up demand also kept the base high throughout FY24 after the easing of import restrictions.

The average replacement cycle has lengthened from 2.5 years to 3.5 years, mainly due to a lack of exciting new model launches. This is driven by weaker rural and farmer incomes.

Of the 14.24 million locally assembled mobile phones during the first half of 2025, 54 percent (7.63 million units) were 2G phones, while the remaining 46 percent (6.60 million units) were smartphones.

Pakistan met 94 percent of its mobile phone demand through local manufacturing or assembly in the first half of 2025, compared to a five-year (2020–2024) average of 77 percent and a nine-year (2016–2024) average of 52 percent.

The top 10 locally assembled brands during 1H2025 included VGO Tel (1.63 million units), followed by Infinix (1.50 million units), Itel (1.23 million units), Vivo (1.20 million units), Xiaomi (0.83 million units), Samsung (0.76 million units), Tecno (0.67 million units), G’Five (0.64 million units), Nokia (0.59 million units), and QMobile (0.56 million units).

Looking ahead, Topline expects mobile phone demand to recover on the back of a low base and easing inflation. Among listed companies, Airlink Communication (AIRLINK) and Lucky Cement (LUCK) are expected to benefit, as their locally assembled brands such as Tecno, Xiaomi, and Samsung rank among the top 10 in Pakistan.

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