Topline Pakistan Research has published a report on the local manufacturing and assembly of mobile phones in Pakistan, highlighting a 13% decrease in production for FY25. According to the latest data from the Pakistan Telecommunication Authority (PTA), local mobile companies manufactured or assembled 2.19 million units in June 2025, marking a 49% decline year-over-year from 4.26 million units in June 2024. This significant drop is attributed to a high base effect from last year, coupled with excessive pre-buying.

Overall, locally manufactured and assembled mobile phone sales for FY25 are at 28.28 million units, representing a 13% decrease compared to the previous year.

The decline in mobile phone sales can be attributed to several factors:

– **High base effect from the previous year**: The industry experienced exceptional sales in June 2024 due to an increase in the Goods and Services Tax (GST) on mobile phones, which changed from a fixed amount to 18%. Additionally, pent-up demand following the easing of import restrictions kept the sales base high throughout FY24.

– **Extended mobile replacement cycle**: The average replacement cycle for mobile phones has increased from 2.5 years to 3.5 years, largely due to a lack of exciting new model releases.

– **Reduced consumer spending**: Weaker economic conditions in rural areas and among farmers have led to decreased consumer spending.

Among the locally assembled phones, 14.24 million units were produced in [insert date], of which 54% (7.63 million units) were 2G phones, while the remaining 46% (6.60 million units) were smartphones.

In [insert date], Pakistan met 94% of its mobile phone demand through local manufacturing and assembly, compared to a 5-year average (2020-2024) of 77% and a 9-year average (2016-2024) of 52%.

The top 10 locally assembled brands during this period included:

1. VGO Tel (1.63 million units)

2. Infinix (1.50 million units)

3. Itel (1.23 million units)

4. Vivo (1.20 million units)

5. Xiaomi (0.83 million units)

6. Samsung (0.76 million units)

7. Tecno (0.67 million units)

8. G’Five (0.64 million units)

9. Nokia (0.59 million units)

10. Q Mobile (0.56 million units)

Looking ahead, we anticipate mobile phone demand to rebound, supported by a lower base and decreasing inflation. Within the listed sector, companies like Airlink Communication (AIRLINK) and Lucky Cement (LUCK) are expected to benefit, particularly through their locally assembled brands such as Tecno, Xiaomi, and Samsung.sung, rank among the top 10 in Pakistan.