Pakistan Local Manufacturing/Assembly of mobile phones up 28% MoM in Dec-2024
ISLAMABAD: As per the latest data released by Pakistan Telecommunication Authority (PTA), local mobile companies have manufactured/assembled 2.95mn units, up 28% MoM in Dec-2024.
On QoQ basis, local mobile companies have manufactured/assembled 8.79mn units in 4Q2024, up 67% QoQ compared to 5.25mn units assembled in 3Q2024.
This takes total locally manufactured/assembled sales for the full year 2024 to 31.38mn units up 47% YoY. This significant improvement is mainly due to the import restrictions imposed last year.
However if we compare it with 2022, the growth is still 43% YoY. This growth is mainly driven by economic recovery, increasing share on locally assembled mobile phones amid higher taxes on imported phones, and growing population among others.Global mobile network data traffic projected to grow almost 200 percent between 2024 and the end of 2030
Within the locally assembled mobile phones of 31.38mn units during 2024, 59% (18.64mn units) are smartphones, while the remaining 41% (12.74mn units) are 2G phones.
Top 10 locally assembled brands during 2024 includes, 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.
