How is tax policy turning Airlink into a market leader?

Pakistan’s smartphone market is undergoing a major shift. Consumer preferences are increasingly tilting toward affordable and reliable technology, and AirLink Communication Ltd. (AIRLINK) is riding that wave.

The surge in demand for budget smartphones is a direct result of economic and regulatory changes that have priced premium smartphones out of reach for many consumers. Due to steep taxes imposed on flagship devices such as Apple and Samsung, consumers are now opting for cost-effective alternatives. This has created a massive opportunity for companies like Airlink, which assembles and distributes brands such as Xiaomi, Tecno, and Itel in Pakistan.

Taxation fuels budget demand

Flagship smartphones priced above $500 are subject to heavy duties, making them unaffordable for the average Pakistani. In contrast, smartphones priced around $100 (~PKR 28,000) now represent a more feasible option. Airlink, with its focus on assembling these budget-friendly models, has seized this demand surge.

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Everyday utility powers mass adoption

For many Pakistanis, smartphones are no longer luxury items, they are daily essentials used for mobile banking, social networking, education, and digital communication. This mass market requires affordable phones that deliver performance without the premium price tag, and Airlink is positioned perfectly to serve it.

Shift from premium to practical

The decline in premium market share is telling. For instance, Xiaomi’s share in the Pakistani market rose from 7.6% in Jun’24 to 9.3% in Apr’25, directly benefiting Airlink which manufactures and distributes Xiaomi devices locally.

The value-for-money mindset

Consumers are increasingly valuing practicality over prestige. They seek durability, access to apps, and connectivity, all at a fraction of the cost of premium brands. Airlink’s strategy of offering competitively priced smartphones that don’t compromise on quality has helped it build a loyal user base.

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Leveraging local manufacturing

By focusing on local assembly, Airlink keeps prices low while benefiting from government incentives. This localization not only improves margins but also ensures better availability and pricing stability.

A timely strategic advantage

The transition from premium to budget-focused buying isn’t just a short-term trend, it represents a long-term structural change in consumer behavior. As the market matures, Airlink’s proactive alignment with these new consumer preferences makes it a compelling player in Pakistan’s tech ecosystem.

📌 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 →