Local Mobile Manufacturing in Pakistan Surges: Infinix is at Top Spot

In September 2024, local mobile phone manufacturing in Pakistan surged, experiencing a significant 44% increase compared to the previous month and an impressive 74% jump year-on-year. This growth is largely driven by rising smartphone demand and favourable domestic manufacturing policies. The Pakistan Telecommunication Authority (PTA) highlighted that the local mobile manufacturing sector sustained strong growth throughout September, with domestic companies producing or assembling 2.15 million units that month alone.

During the first nine months of 2024 (9M2024), Pakistan witnessed the sale of 22.59 million locally manufactured or assembled mobile phones, marking a 74% year-on-year increase compared to the same period in the previous year. This impressive growth follows a government policy shift in 2023 that limited mobile phone imports and promoted local assembly to support the economy. The restrictions, coupled with high import taxes, made domestic assembly a more attractive option, spurring economic recovery and meeting rising demand from a growing population.

Local Mobile Manufacturing in Pakistan Surges: A 44% Monthly and 74% Yearly Increase

Breaking down the numbers for 9M2024, about 61% of the locally assembled phones were smartphones, totalling 13.86 million units, while 39%, or 8.73 million units, were 2G feature phones. This shift reflects an increasing preference for smartphones among Pakistani consumers, as more people are drawn to their advanced features and capabilities.

Several brands are leading in the local assembly market, with Infinix taking the top spot with 2.79 million units, followed closely by Itel at 2.75 million units, and VGO Tel with 2.43 million units. Vivo and Tecno also contributed substantially with 2.13 million and 2.03 million units, respectively. Other significant players include 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). These brands have seized the opportunity presented by local production facilities, aligning with consumer demand while supporting the economy.

In particular, Tecno and Xiaomi, both manufactured locally by Air Link Communication (AIRLINK), reported notable month-on-month growth in September 2024. Tecno saw a 33% increase, producing an additional 0.04 million units, while Xiaomi experienced remarkable growth of 117%, producing 0.13 million units. These figures underscore the role of established local manufacturers in catering to the rapidly expanding market.

See Also: Local Mobile Phone Manufacturing Drops 20pc YoY in July 2024

The PTA projects that mobile phone demand in Pakistan could reach 33 million units by the end of 2024, which would mark a 44% increase from the 22.9 million units sold in 2023. Part of this rising demand is due to the recently implemented 18% sales tax on all mobile phones, introduced in the FY2025 budget, which has prompted consumers to seek out locally manufactured alternatives to save on costs.

Overall, Pakistan’s mobile phone manufacturing sector is thriving due to the economic policies that support local assembly. This shift has not only allowed the market to meet the needs of a growing consumer base but also fostered job creation and technological advancement. As the government continues to incentivize local production, Pakistan will become a more self-reliant player in the mobile phone industry, potentially reducing its reliance on imports while contributing to a more robust economy. The steady growth and increased output from domestic brands indicate a promising future for Pakistan’s mobile industry in terms of meeting both domestic demand and possibly exploring export potential.