Local mobile phone production falls 13pc in FY25

KARACHI: Pakistan’s local manufacturing and assembly of mobile phones declined by 13 per cent year-on-year (YoY) in FY25, with total production falling to 28.28 million units, according to the latest data released by the Pakistan Telecommunication Authority (PTA).

The downturn has been attributed to a combination of high base effects, an extended mobile replacement cycle and weakening consumer demand, particularly in rural areas.

In June 2025 alone, local manufacturers assembled 2.19 million units, representing a sharp 49 per cent YoY drop compared to 4.26 million units in June 2024. This steep decline is primarily due to a high base effect, as last year’s sales surged amidst pre-buying driven by an increase in the general sales tax (GST) on mobile phones from a fixed amount to 18 per cent. Mobile phone sales in June 2025 were also 10 per cent lower than the average of the first five months of the year.

According to Sania Irfan, an analyst at Topline Securities, the industry’s previous boom was fuelled by pent-up demand following the relaxation of import restrictions, which artificially boosted FY24 sales. “The extended mobile replacement cycle has also impacted demand,” she noted, highlighting that the average replacement period has increased from 2.5 years to 3.5 years, largely due to a lack of innovation and new model launches. Additionally, reduced consumer spending, particularly in rural and farming communities, has further dampened demand.

In the first half of 2025, 14.24 million mobile phones were locally assembled, with 54 per cent (7.63 million units) comprising basic 2G phones and the remaining 46 per cent (6.60 million units) being smartphones. Despite the overall downturn, Pakistan met 94 per cent of its mobile phone demand through local production during this period, an improvement compared to the 77 per cent average from 2020 to 2024 and the 52 per cent average over the past nine years (2016-2024).

Among the top locally assembled brands in 1H2025 were VGO Tel (1.63 million units), Infinix (1.50 million), Itel (1.23 million), Vivo (1.20 million), Xiaomi (0.83 million), Samsung (0.76 million), Tecno (0.67 million), G'Five (0.64 million), Nokia (0.59 million), and Q Mobile (0.56 million). Looking ahead, Sania Irfan expected mobile phone demand to rebound due to a low base effect and easing inflationary pressures.