Local mobile production surges 74pc in 9M2024 as demand for smartphones rises

KARACHI: Pakistan’s local mobile manufacturing sector continued its upward momentum in September 2024, with 2.15 million units manufactured or assembled by domestic companies, marking a 44 per cent month-on-month increase and maintaining steady growth compared to the same period last year, according to the latest data from the Pakistan Telecommunication Authority (PTA).

In the first nine months of 2024 (9M2024), a total of 22.59 million locally manufactured or assembled mobile phones were sold, reflecting a 74 per cent year-on-year increase. This substantial growth follows last year’s import restrictions, which fostered a shift towards domestic assembly. Compared to 9M2022, the market grew by 35 per cent year-on-year, driven by Pakistan’s economic recovery, a shift towards locally assembled phones amid higher taxes on imports, and population growth.

Within the 22.59 million locally assembled phones in 9M2024, 61 per cent (13.86 million units) were smartphones, while 39 per cent (8.73 million units) comprised 2G feature phones. The top ten brands contributing to local assembly included Infinix (2.79 million units), Itel (2.75 million units), VGO Tel (2.43 million units), Vivo (2.13 million units), Tecno (2.03 million units), Xiaomi (1.89 million units), Realme (1.35 million units), G’Five (1.09 million units), Samsung (0.98 million units), and Nokia (0.96 million units).

Among these, Tecno and Xiaomi, both manufactured by Air Link Communication (AIRLINK), saw notable month-on-month growth in September 2024, with Tecno rising by 33 per cent to 0.04 million units and Xiaomi by a significant 117 per cent to 0.13 million units.

Looking ahead, the PTA anticipates total mobile phone demand could reach 33 million units in 2024, up 44 per cent year-on-year from 22.9 million units in 2023. This demand surge is partly due to the recent 18 per cent sales tax on all mobile phones, introduced in the FY2025 budget.