Local mobile phone manufacturing in Pakistan fell by 13% year-on-year in FY25, with 28.28 million units produced, according to data released by the Pakistan Telecommunication Authority (PTA).
In June 2025, mobile companies manufactured or assembled 2.19 million units, a 49% drop from the 4.26 million units in June 2024, primarily due to a high base effect and excessive pre-buying last year.
The PTA report highlights that mobile phone sales were also down 10% compared to the five-month average for FY25.
According to Topline Securities, the decline is attributed to several factors, including last year’s exceptional sales driven by an increase in the Goods and Services Tax (GST) on mobile phones and pent-up demand after the easing of import restrictions.
Another contributing factor is the extended replacement cycle, which has risen from 2.5 years to 3.5 years due to a lack of new model launches. Weaker consumer spending, especially in rural areas, has also impacted mobile phone sales.
In the first half of 2025, 14.24 million mobile phones were assembled locally, with 54% being 2G phones and 46% smartphones. The local industry met 94% of the country’s mobile phone demand in the first half of 2025, well above the five-year average of 77% and the nine-year average of 52%.
Among the top brands in local mobile assembly, VGO Tel led with 1.63 million units, followed by Infinix (1.50 million), Itel (1.23 million), and Vivo (1.20 million).
Looking ahead, demand for mobile phones is expected to recover, driven by a lower base and reduced inflation. Companies like Airlink Communication (AIRLINK) and Lucky Cement (LUCK), which assemble popular brands like Tecno, Xiaomi, and Samsung, are expected to benefit.
