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Air Link’s long-awaited move into laptop assembly has hit an unexpected bureaucratic roadblock. The company cannot begin assembling Acer’s E-series laptops because the government has not assigned the required Harmonised System (HS) code for semi-knocked-down (SKD) kits. As a result, Air Link must rely on completely built-up (CBU) imports for now, delaying local production by almost a year.
For this collaboration, Airlink aligned with its partner ‘Acer Gadgets e10’ and the company has already opened its first letter of credit. It expects an initial shipment of 10,000 CBU units to arrive soon. However, margins will be thinner. Under the CBU model, gross margins hover at 16–18%, well below the economics promised by local assembly. Air Link told investors it will only begin assembling laptops once the SKD HS code is officially issued.
Air Link Acer’s Local Assembly Pushed to 2026
Initially, Air Link planned to place Acer laptops on shelves in the first half of 2025. Yet the missing HS code and a slow approvals process have pushed the local assembly timeline into 2026. Research now assumes sales of around 45,000 laptops in FY26, a figure far below what a full SKD ramp could have delivered.
Still, the company is moving forward. The CBU-first approach will help Air Link establish a market presence. It will also let the team learn the laptop category’s demand cycles, service needs, and after-sales structure before switching to SKD.
However, the shift carries risks. CBU imports expose the company to tariff changes and exchange-rate volatility. Any duty hike or rupee slide could further compress margins during FY26. Moreover, Pakistan’s laptop market is consolidated. Established importer-retailers may respond aggressively on price, putting pressure on early CBU volumes.
Xiaomi TVs by Air Link Gain Traction
While laptops face delays, Air Link’s television segment is performing steadily. The company launched Xiaomi Smart TVs in 3QFY25, placing them below Samsung and TCL on price. However, they still offer the same core features, including bezel-less designs and Google Assistant integration.
Analysts expect the TV category to contribute Rs. 5.4 billion in FY26 from about 40,000 units. Although this falls short of management’s longer-term target of 100,000 units, it still provides a strong base for a new product line. The broader industry trend also helps. Pakistan’s formal local production is rising across electronics, creating a tailwind for assemblers who balance price, quality, and after-sales services.
SEZ Expansion, Smartphone Strength & Apple Retail Push
Air Link continues to rely on smartphones as its core revenue engine. It assembles devices locally for Xiaomi, Tecno, and Itel. It is also expanding operations at the Sundar Green Special Economic Zone (SG-SEZ), where it owns an eight-acre facility alongside its subsidiary, Select Technologies.
The SEZ offers major incentives. Air Link qualifies for a 10-year tax holiday and a one-time GST exemption on machinery. The company plans to shift half of its smartphone production to this new facility first and move the rest during FY26. The SG-SEZ site will also house laptops, TVs, and a new home-appliance category.
In a premium push, Air Link plans to open Pakistan’s first official Apple mono-store by December 2025 at Dolmen Mall, Lahore. The company cites its Rs. 280 million single-day sales record during the iPhone 17 launch as proof of strong Apple demand. iPhone resale margins currently range between 8–14%, and the mono-store will provide tighter retail control and a more integrated service experience.
A Bureaucratic Miss With Bigger Implications
The core issue remains surprisingly basic: without an SKD HS code, Acer laptop assembly cannot begin. This administrative delay blunts the benefits of Pakistan’s localisation policy, which previously boosted smartphone production through DIRBS and favourable duty structures. Those same benefits must now extend cleanly to laptops and other adjacent categories.
Air Link already has the ingredients for a successful laptop business: Acer Gadget e10’s partnership, a new SEZ facility, a trained workforce, and established retail channels. The only missing piece is timely policy execution.
Until the government issues the HS code, Acer laptops will enter as CBU units, margins will stay thin, and FY26 volumes will fall short of original expectations. Even so, Air Link’s broader strategy remains intact. TVs are contributing, smartphones remain stable, and the upcoming Apple mono-store strengthens its premium positioning.
The fix is simple. Once Islamabad assigns the required HS code, Air Link can shift swiftly from a CBU stopgap to full local assembly and finally unlock the value it planned to create in Pakistan’s laptop market.
