Mobile phone production in Pakistan drops 46 percent in August

Pakistan’s domestic mobile phone industry hit a sudden brake in August 2025, as local manufacturing and assembly plunged by nearly half compared to the previous month.

Fresh data released by the Pakistan Telecommunication Authority (PTA) and compiled by Topline Securities showed that local firms assembled 1.94 million mobile phones in August, down 46 percent from 3.59 million in July.

The steep drop was linked to buyers holding back purchases in anticipation of new smartphone models due for release in September and October. Analysts noted that the unusually high sales in July, spurred by pent-up demand after earlier supply chain issues, also made the August slump look worse on paper.

Year-on-year trend paints a different picture

While the monthly numbers were disappointing, the year-on-year comparison tells another story. August 2025 output was still 30 percent higher than the same month last year. The industry was recovering then from a post-budget slowdown triggered by an advance buying spree in June 2024, before an 18 percent GST was imposed.

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This base effect explains why production looks far stronger when compared to last year, even though the month-on-month decline seems dramatic.

Industry still a backbone of supply

Despite August’s fall, the local industry continues to dominate Pakistan’s mobile phone market. Between January and August 2025, domestic firms rolled out 19.7 million handsets, just 3 percent lower than the same period last year. Local assemblers supplied about 94 percent of the country’s total demand during this period, reflecting a strong shift away from imported devices.

Interestingly, the data shows that feature phones remain popular. Around 51 percent of the handsets assembled in the first eight months of 2025, roughly 10 million units, were 2G phones, while the remaining 49 percent, or 9.7 million units, were smartphones.

Who’s leading the pack?

Among local assemblers, VGO Tel held the top spot with 2.33 million units produced in the first eight months of 2025. Infinix followed closely with 2.24 million units. Vivo, Itel, Xiaomi, Tecno, and Samsung also recorded strong production, each crossing the one million mark. Legacy names such as QMobile, Nokia, and G’Five managed to retain places in the top ten, though their volumes were smaller.

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Outlook for the rest of 2025

Industry watchers expect the market to bounce back in the final quarter of the year. The release of new models from Samsung and Xiaomi in September is expected to revive consumer interest and drive sales. Analysts project mobile phone sales could grow by 7 to 8 percent year-on-year over the next 12 months, helped by relatively stable inflation and the seasonal demand spike.

Companies like Airlink Communication and Lucky Cement, which assemble Tecno, Xiaomi, and Samsung phones locally, are expected to be key beneficiaries of this rebound.

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