Karachi, February 7, 2025 – The production of mobile phones under the “Made in Pakistan” initiative has experienced an extraordinary 47% annual growth, marking a significant milestone in the country’s technological advancement.
According to data released by the Pakistan Telecommunication Authority (PTA), the local mobile phone manufacturing sector expanded to 31.35 million units in 2024, a significant rise from 21.28 million units recorded in the previous year. Analysts at Topline Securities Limited attribute this remarkable increase to the government’s import restrictions, which have driven demand for locally assembled mobile phones.
In December 2024 alone, local manufacturers produced 2.95 million mobile phones, reflecting a 28% increase on a month-on-month (MoM) basis. On a quarterly scale, production surged 67% in Q4 2024, reaching 8.79 million units, compared to 5.25 million units in Q3 2024.
Despite this impressive growth, the comparison with 2022 still shows a 43% year-on-year (YoY) improvement. The surge in production is fueled by economic recovery, increased reliance on locally assembled mobile phones due to higher taxes on imports, and a growing consumer base.
Of the total 31.35 million locally manufactured mobile phones, 59% (18.64 million units) were smartphones, while the remaining 41% (12.74 million units) consisted of 2G feature phones.
The top ten locally assembled mobile phone brands in 2024 included Infinix (3.98 million units), Itel (3.64 million units), VGO Tel (3.37 million units), Tecno (2.85 million units), Vivo (2.77 million units), Xiaomi (2.35 million units), Realme (1.76 million units), Samsung (1.51 million units), G’Five (1.44 million units), and Nokia (1.36 million units).
Pakistan met 95% of its mobile phone demand through local manufacturing and assembly in 2024, a drastic improvement compared to the five-year average (2019-2023) of 67% and the eight-year average (2016-2023) of 47%.
Within the listed sector, Air Link Communication (AIRLINK) has emerged as a leading assembler, contributing significantly to Tecno and Xiaomi production. Tecno’s output skyrocketed by 97% YoY to 2.85 million units, while Xiaomi saw a 79% YoY increase to 2.35 million units.
Given the robust growth of the mobile phone sector, AIRLINK is well-positioned to benefit from the expanding market. The company maintains a strong buy stance, with its stock currently trading at an FY25F P/E of 11.6x and an FY26F P/E of 8.7x.