Pakistani Mobile Phone Industry Booming! Here’s why?

The latest report from a global intelligence firm showed that mobile phone penetration in Pakistan had increased dramatically in the last two quarters of 2023. As per the data, in YoY growth, smartphone penetration increased by 87.4%, while feature phone penetration witnessed an increase of 65.8% in Q4 of 2023. Simultaneously, in YoY growth, feature phone penetration witnessed an increase of 64.9%, while smartphone penetration increased by 30.6%.

It’s astonishing to see such massive growth, which leads us to the question of what factors can be attributed to such high mobile phone penetration.

Factors Responsible for Growth in Mobile Phone Penetration

Uplifting of the LC Ban:

The Pakistani mobile phone industry witnessed a major setback in 2022 and the first half of 2023 when the government decided to impose an LC ban on the commercial import of mobile phones, including SKD and CKD units, to make the final product within Pakistan. This was a major blow to local mobile manufacturing companies and led to a halt in production. At that time, very few mobile phones entered the local market. It is also evident from a global intelligence firm’s report on mobile penetration in Q2 of 2023, which showed negative growth. As per the data, feature phone penetration and smartphone penetration stood at -31.9% and -58.6% respectively.

New entrants in the market:

After the LC ban was lifted, the emergence of new players like Sparx, and Dcode, along with existing ones, contributed to the expansion of the mobile phone market. These companies introduced competitive products in the most desirable segment of the country, attracting a wider consumer base.

• Points to remember:

The increase in penetration doesn’t indicate the buying and selling of smartphones. Moreover, it is only based on the data of mobile phones that are brought or assembled in the country through legal channels.