Local mobile phone manufacturing declines 8% YoY in November

KARACHI: Local mobile phone manufacturers produced 2.31 million units in November 2024, marking an 8 per cent year-on-year (YoY) decline and a 35 per cent month-on-month (MoM) drop, says brokerage firm Topline Securities citing the latest data from the Pakistan Telecommunication Authority (PTA). This follows a stronger performance in October 2024, when local manufacturers assembled 3.53 million units, reflecting a 34 per cent YoY and 64 per cent MoM increase -- the highest monthly production in seven months. As of November 2024 (11M2024), the total number of locally manufactured and assembled mobile phones for the year stands at 28.43 million units, a 57 per cent YoY increase. This improvement is largely attributed to the import restrictions imposed last year. However, compared to the same period in 2022, growth is still 44 per cent YoY.

Key drivers for this growth include the ongoing economic recovery, a shift towards locally assembled phones amidst higher taxes on imported devices and a growing population.Out of the total 28.43 million units produced, 60 per cent (17.01 million units) are smartphones, while the remaining 40 per cent (11.42 million units) are 2G phones.

The top 10 locally assembled mobile brands in Pakistan for the first 11 months of 2024 include Infinix (3.65 million units), Itel (3.34 million units), VGO Tel (3.07 million units), Vivo (2.57 million units), Tecno (2.53 million units), Xiaomi (2.19 million units), Realme (1.61 million units), G’Five (1.41 million units), Samsung (1.26 million units), and Nokia (1.20 million units).

Looking ahead, according to Topline Securities, with the current production trend, total mobile phone demand in the country is projected to reach 32.9 million units in 2024, a 44 per cent increase from the 22.9 million units sold in 2023.