China’s Transsion smartphone maker, little known outside of Africa, taking local markets by storm

China’s Transsion smartphone maker, little known outside of Africa, taking local markets by storm
/ Transsion
By bne IntelliNews August 25, 2023

China’s Transsion Holdings, which makes budget smartphones under brands Tecno, Itel, and Infinix, is relatively unknown outside of Africa but has become a market leader in many countries on that continent and beyond.

Transsion Holdings logged double-digit growth in sales in the second quarter to become the fifth-biggest phonemaker in the world. Sales rose by 31% y/y to 24.8mn units, according to a report by TechInsights.

The Shenzhen-based company, which focuses on the markets of Africa, but also parts of the Middle East, Asia, and Central and Latin America, was the only supplier to achieve double-digit growth during the quarter, according to that report, as cited by Yicai.

Rather than importing technology from outside, the Chinese manufacturer has built up a business specifically designed for low-income populations and harsh climates, with many brands first rolled out in African markets.

A relatively unknown Chinese mobile phone manufacturer at home, it commands an impressive 54% share of Africa's smartphone market, according to Eivor Vagslid, an African observer.

Transsion has a manufacturing facility in Ethiopia to which he travelled this month to unravel the secrets behind the company's remarkable success, and later also interviewed locals in Djibouti, and Nigeria.

In stark contrast to the conventional narrative that often attributes the triumph of overseas Chinese companies to the "cheap made-in-China" label, the Transsion story presents an inspiring model of mutual respect yielding mutual benefits for both Africa and China.

Transsion's recognition is virtually non-existent in China. Since the launch of its inaugural mobile phone in 2007, each of its phones has debuted in the African market, tailored to suit the preferences of African consumers.

In 2022, the Chinese brand achieved the sale of a staggering 156mn mobile phones, capturing an impressive 11.7% global market share. Notably, Transsion's smartphone shipments ranked first in Africa.

Guided by the motto "not letting anyone in Africa lag behind in the global digital revolution," Transsion offers phones ranging from a basic model priced at $10 to a flagship model at $1,300. This diverse range caters to the varied demands of African consumers.

Transsion's uniqueness has stemmed from its meticulous attention to peculiar technological innovations designed to cater to Africa's distinctive features, Vagslid says.

Some of these noteworthy technological features include:

Acid-Proof Coating: In Africa's tropical climate, mobile phones frequently encounter users' sweat, which is mildly acidic. Transsion has ingeniously developed an acid-proof coating that safeguards the phones from corrosion, thereby enhancing their longevity. This protective feature extends to ensuring normal fingerprint recognition even during high temperatures.

Enhanced Capture of Dark Skin Tones: Recognizing the diversity of African skin tones, Transsion has calibrated its cameras to optimally capture darker shades. This enhancement empowers young Africans to create higher-quality photos and videos, reflecting their unique aesthetics.

Four-Card, Four-Standby Feature: Acknowledging the prevalence of using multiple SIM cards, especially in nations like Nigeria, Transsion's smartphones incorporate a remarkable four-card and four-standby capability. Users can insert four SIM cards and simultaneously call four different numbers, catering to the practical requirements of their daily communication.

Notably, Transsion's engagement with Africa extends beyond technology. The company has placed a strong emphasis on technological transfer to Africans, evidenced by its promotion of Ethiopian talent to prominent positions within the corporation. A significant shift is observed in the composition of the workforce at its Ethiopian factory, with more Ethiopians taking up key managerial roles.

Transsion's product line has also diversified, extending beyond mobile phones to encompass various electric products catering to African needs. In a bid to address practical challenges, the company has ventured into the creation of solar-powered fans and even a machine capable of producing fufu, a staple delicacy in Nigeria.

The Transsion narrative is a testament to the company's ability to comprehend and adapt to Africa's unique requirements, paving the way for innovation, mutual respect, and sustainable mutual benefits between Africa and China.

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