Sales of locally manufactured and assembled cell phones decline in FY25

KARACHI: The sales of locally manufactured and assembled phones in 11 months of the fiscal year 2024-25 (July 24 to May 25) clocking in at 26.09 million units, showed 8 per cent decline YoY. Similarly, in 5M2025, locally manufactured and assembled sales clocked in at 12.05 million units, also down 8 per cent YoY, according to a research report issued by Topline Securities on Friday. 

Reduced consumer spending driven by persistently high inflation, increased replacement cycle from 2.5 years to 3.5 years due to lack of exciting new models are among the many reasons adding to the low sales.

However, as per the latest data released by the Pakistan Telecommunication Authority (PTA), local mobile companies manufactured and assembled 4.84 million units during April and May 2025, up 4 per cent YoY compared to 4.65 million units in the same period of 2024.

Some contributory factors which led to the decline is cell–phone sales is high base effect from last year – to recall, the industry witnessed exceptional sales last year in 2024 due to pent-up demand following the easing of import restrictions.

Extended mobile replacement cycle – The average replacement cycle has increased from 2.5 years to 3.5 years, primarily due to the lack of exciting new model launches, the research report said.

Reduced consumer spending – This is driven by persistently high inflation and weaker rural/farmer economics, is another major factor affecting the low sales.

Among the locally assembled mobile phones of 12.05 million units during 5M2025, 54 per cent (6.53 million units) are 2G phones, while the remaining 46 per cent (5.52 million units) are smartphones.

Pakistan fulfilled 94 per cent of its mobile phone demand through local manufacturing/assembly in 5M2025, compared to a last 5-Years (2020-2024) average of 77 per cent and 9-Years (2016-2024) average of 52 per cent.

Top 10 locally assembled brands during 5M2025 includes, Infinix (1.34 million units), followed by VGO Tel (1.33 million units), Itel (1.07 million units), Vivo (0.96 million units), Samsung (0.67 million units), Xiaomi (0.65 million units), G’Five (0.64 million units), Tecno (0.62 million units), Nokia (0.52 million units), and Q Mobile (0.5 million units), Topline report went on to add.

Within the listed space, Air Link Communications (AIRLINK) assembles mobile phones of Tecno and Xiaomi, ranked among the top 10 in 5M2025.

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