Mobile phone manufacturing and assembly activity in Pakistan recorded a noticeable decline in October 2025, as fresh data from PTA compiled by Topline Securities showed a 23 percent month-on-month drop in output. The industry produced 2.33 million units during the month compared to higher volumes in September, reflecting the impact of elevated inventory levels across the market that encouraged manufacturers to slow down production. On a year-on-year basis, the October output was down 34 percent from 3.53 million units in October 2024, signaling that the slowdown was not only monthly but also part of a broader cooling trend tied to excess supplies in the retail and distribution channels. Industry insights pointed to distributors and retailers holding larger than usual stock, prompting producers to scale back operations in order to prevent further accumulation of unsold devices. The shift highlights how inventory pressure can influence production cycles even when long-term demand remains positive.
During the first ten months of 2025, cumulative mobile phone manufacturing and assembly reached 25.11 million units, marking a 4 percent decline compared to the same period last year. This ten-month total included both smartphones and 2G devices that continue to have a presence in the market. Of the total 25.11 million units recorded in October, 53 percent represented smartphones, translating to 13.2 million units, while the remaining 47 percent or 11.9 million units were 2G phones. The data illustrates that while smartphones form a slight majority of production, feature phones still maintain meaningful demand across the country, particularly in price-sensitive segments. Despite the decline in monthly and cumulative production, Pakistan has been meeting a significantly higher share of its domestic mobile phone requirements through local manufacturing and assembly. During the first ten months of 2025, 94 percent of the country’s mobile phone demand was fulfilled locally, a sharp improvement when compared with the five-year average of 77 percent from 2020 to 2024 and the nine-year average of 52 percent from 2016 to 2024. This indicates that the shift toward local production has gradually strengthened over several years, even while short-term fluctuations continue.
Industry expectations suggest that mobile phone sales could see growth of around 7 to 8 percent year-on-year over the next twelve months, supported by factors such as a relatively stable rupee, easing inflation, and improving consumer purchasing power. These conditions could help absorb existing inventory and pave the way for higher production cycles if demand picks up in retail markets. Analysts tracking the sector pointed out that within the listed companies, Airlink Communication and Lucky Cement are positioned to benefit from rising demand trends due to their involvement in locally assembled brands. Devices from Tecno, Xiaomi, and Samsung, which fall under their portfolios, currently rank among the top ten brands in the market, reflecting strong consumer preference. The performance of these brands suggests that established players in the assembly ecosystem could gain momentum once inventory pressures are resolved and sales volumes begin to stabilize. The current production slowdown underscores the importance of balancing inventory levels with market consumption, while the broader data on local demand fulfillment shows an ongoing shift toward domestic manufacturing that continues to shape Pakistan’s mobile phone landscape.
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