The Pakistan Telecommunication Authority (PTA) announced that 4.26 million mobile phones had been manufactured and assembled locally, a whopping 13 times increase from the previous year and a two-time increase from the previous month. The sudden surge in sales was due to the announcement of an 18% Goods and Services Tax (GST) on all mobile phones in the upcoming budget. People rushed to buy phones before the tax hike, and local companies worked overtime to meet the demand.
Local companies such as Infinix, Tecno, and Itel have emerged as top performers, selling millions of units in the first half of 2024. This shift towards local manufacturing and assembly has been a game-changer for the industry and a source of pride, with Pakistan now fulfilling 98% of its mobile phone demand through local production.
According to Topline Pakistan Research, in 1H2024, the total locally manufactured/assembled sales reached 17.34mn units, marking a significant 3x YoY increase. This remarkable improvement can be largely attributed to the import restrictions imposed last year, demonstrating the industry’s resilience and adaptability.
However, compared with 1H2022, the growth is still 23% YoY. This growth is mainly driven by gradual economic recovery, an increasing share of locally assembled mobile phones amid higher taxes on imported phones, and a growing population, among other factors.
Of the 17.34mn locally assembled mobile phones during 1H2024, 64% (11.15mn units) are smartphones, while the remaining 36% (6.19mn units) are 2G phones.
Pakistan now fulfils 98% of its mobile phone demand through local manufacturing/assembly, a significant increase from the last month’s average of 96%, the last five years ‘ (2019-2023) average of 67%, and the eight-year (2016-2023) average of 47%. This showcases the rapid growth of our industry and the positive impact on our economy. To highlight, all mobile brands except iPhones are now being manufactured/assembled in Pakistan, a clear sign of our economic growth.
The top 10 locally assembled brands during 1H2024 include Infinix (2.5mn units), followed by Tecno (1.9mn units), Itel (1.8mn units), VGO Tel (1.8mn units), Vivo (1.7mn units), Xiaomi (1.6mn units), Realme (1mn units), Nokia (0.8mn units), G’Five (0.6mn units), and OPPO (0.6mn units).
Outlook:
According to our channel checks, based on the current monthly run rate and the recent imposition of an 18% sales tax on all mobile phones in Budget FY25, total mobile phone demand may reach 33 million units in 2024 vs. 22.9 million units sold in 2023, up 44% year over year.
Photo courtesy – Airlink
