Although little known among Chinese consumers, Transsion has a high market share in emerging countries. From July to September 2023, Transsion shipped 26 million smartphones, an increase of 35% over the same period last year, and its global market share was 9%, ranking fifth and approaching the fourth OPPO.
Chinese smartphone maker Transsion Holdings continues to grow. Although little known among Chinese consumers, Transsion has a high market share in emerging countries and has the title of “King of Africa” in the industry. In 2023, on a quarterly basis, Transsion’s smartphone shipment share jumped to the fifth in the world for the first time, and its presence was further improved.
Leading the way into Africa
On October 18, activities related to the Belt and Road were held in Beijing. Transsion signed a memorandum of understanding with the United Nations Economic Commission for Africa (ECA) on promoting digitalization in Africa, and the company’s chairman Zhu Zhaojiang said that the company will continue to tap the driving force of economic growth in Africa.
Transsion has a long history with Africa. Mr. Zhu Zhaojiang ran overseas sales at another Chinese handset maker before founding Transsion’s predecessor company in Shenzhen, Guangdong province, in 2006 and Transsion in 2013.
Actively avoiding the highly competitive Chinese market, Transsion has targeted Africa from the beginning of its expansion. It is widely known as the first Chinese mobile phone brand to enter the African region.
At present, in addition to feature phones, Transsion also carries out smart phone business, with the high price “TECNO”, low price “itel”, “Infinix” for young people three brands. Launch new products through a broad product line to attract local consumers.
Expanding operations in South Asia and the Middle East
In addition, the African localization of technology and services is also an advantage. Transsion took the lead in developing camera technology suitable for processing images for people with dark skin tones and put it on its own smartphones. The online music APP Boomplay and news APP Scooper, which operate in Africa, each have more than 50 million monthly users.
It is also expanding in places like South Asia and the Middle East. By 2022, it will not only hold 40% of the smartphone market share in Africa, but also take the first place in Pakistan and Bangladesh.
With factories in Ethiopia, India, Bangladesh and other countries, it has perfected the system of flexible production and supply of smartphones near the markets of each country according to demand.
At present, Transsion’s performance is strong. From January to September 2023, the operating income increased by 20% year-on-year to 43 billion yuan, and the net profit increased by 70% to 3.8 billion yuan. Due to the decline in global smartphone demand caused by the impact of the new coronavirus epidemic, there was a double decline in revenue and profit in the fiscal year 2022 (as of December 2022). However, after entering 2023, the rapid recovery of smartphone demand in emerging countries has become a positive factor.
The key is to consolidate the territory and develop users
According to IDC, Transsion’s smartphone shipments from July to September 2023 were 26 million units, an increase of 35% over the same period last year, and its global market share was 9%, an increase of 2 percentage points over the same period last year, ranking fifth in the world. The ranking of Transsion entered the top 5 for the first time from April to June, approaching the fourth place OPPO. IDC pointed out that ‘shipments in emerging markets are significantly increasing’.
Transsion is also making a big push into high-performance smartphones. In February, it launched the first foldable smartphone “PHANTOM V Fold” under the TECNO brand, and then expanded sales in various regions. In recent years, it has also committed to the research and development of artificial intelligence (AI) related technologies.
In Africa, where smartphone penetration is still low, demand for smartphones is expected to grow in line with economic growth. Whether Transsion can further expand its market and users while consolidating its presence in emerging countries may become the key to future growth.