ISLAMABAD: According to the latest data released by the Pakistan Telecommunication Authority (PTA), local mobile manufacturers/assemblers produced 2.95 million units in December 2024, reflecting a 28% month-on-month (MoM) increase.
As per Topline Securities, on a quarter-on-quarter (QoQ) basis, local companies assembled 8.79 million units in Q4 2024, a 67% increase compared to the 5.25 million units assembled in Q3 2024. This brings the total number of locally manufactured/assembled mobile phones for the full year 2024 to 31.38 million units, a 47% year-on-year (YoY) increase. This remarkable growth can largely be attributed to the import restrictions imposed last year.
When compared to 2022, however, the growth stands at 43% YoY. The growth is primarily driven by economic recovery, an increasing share of locally assembled mobile phones due to higher taxes on imported phones, and the growing population, among other factors.
Of the 31.38 million locally assembled units in 2024, 59% (18.64 million units) were smartphones, while the remaining 41% (12.74 million units) were 2G phones.
The top 10 locally assembled brands in 2024 included: Infinix (3.98mn units), followed by Itel (3.64mn units), VGO Tel (3.37mn units), Tecno (2.85mn units), Vivo (2.77mn units), Xiaomi (2.35mn units), Realme (1.76mn units), Samsung (1.51mn units), G’Five (1.44mn units), and Nokia (1.36mn units).
Pakistan fulfilled 95% of its mobile phone demand through local manufacturing/assembly in 2024, compared to a last 5-Years (2019-2023) average of 67% and 8-Years (2016-2023) average of 47%.
Within the listed space, Air Link Communication’s (AIRLINK) assembled mobile phones, Tecno and Xiaomi, ranked among the top 10 in 2024. Tecno’s production rose 97% YoY to 2.85mn units, while Xiaomi’s production increased 79% YoY to 2.35mn units in 2024.
AIRLINK is well-positioned to capitalize on the growing smartphone sales in Pakistan. We have buy stance on AIRLINK, with the stock currently trading at an FY25F P/E of 11.6x and an FY26F P/E of 8.7x.
