How are mobile gaming and social media driving Airlink’s smartphone sales?

In recent years, mobile gaming and social media have revolutionized the way Pakistanis engage with technology, transforming smartphones from communication tools into essential lifestyle companions. According to a recent report by Foundation Securities, these two sectors are now major growth engines for the country’s smartphone market, and Airlink Communication Ltd. (AIRLINK) is strategically positioned to benefit.

Mobile gaming: the new upgrade driver

Gaming has taken the lead in app consumption, accounting for 64% of all app downloads in 2023. A key player in this trend is PUBG Mobile, which recorded 6.4 million downloads last year alone. These figures indicate a clear shift: consumers are no longer satisfied with low-performance phones. They’re seeking high-speed, powerful devices that can handle gaming smoothly, and that means upgrading smartphones more frequently.

As gaming becomes more competitive and immersive, it demands better graphics, faster processors, and enhanced battery life. This is fueling consistent demand for mid-range smartphones, Airlink’s sweet spot. By manufacturing and distributing budget-friendly but powerful Android smartphones under brands like Xiaomi, Tecno, and Itel, Airlink is well-placed to serve this rising demand.

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Social media: the always-on addiction

Social media isn’t just a pastime, it’s a digital necessity. TikTok led app downloads in 2023 with 31.8 million, followed closely by Facebook and YouTube, both of which command significant daily screen time among Pakistani users. In total, Pakistanis clocked 99 billion hours on mobile devices in 2023, an increase of 13.8% YoY, more than double the global average.

This relentless demand for content is pushing consumers to prioritize high-performance smartphones with larger displays and superior audio-visual capabilities. Airlink’s focus on Android-based devices, which account for over 95% of app downloads in the country, means its product line is already aligned with consumer preferences.

Why does this matter for investors?

Airlink is not just riding a wave, it’s building the surfboard. With its strong distribution network and local assembly capability, the company offers a cost advantage over importers. The data suggests continued smartphone demand thanks to rising content consumption, and Airlink’s core brands are positioned right where that demand is strongest.

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The report estimates that Pakistan’s smartphone penetration remains at a low 31%, compared to 54% in comparable developing countries. This under-penetrated market, coupled with increasing screen time, sets the stage for multi-year growth, where Airlink stands to gain both volume and brand recognition.

Source: Foundation Securities

⚠️ This post reflects the author’s personal opinion and is for informational purposes only. It does not constitute financial advice. Investing involves risk and should be done independently. Read full disclaimer →