In the fiercely competitive global mobile phone market, Transsion, once renowned as the "King of African Mobile Phones" for its deep penetration into the African market, now confronts internal and external challenges.

According to the 2024 annual report, Transsion Holding reported annual revenue of 68.715 billion yuan, a 10.31% increase year-on-year, with a net profit attributable to shareholders of 5.549 billion yuan, marking a mere 0.22% increase year-on-year. This reflects a notable trend of revenue growth without a proportionate increase in profits. The African market, as its core revenue driver, contributed 22.719 billion yuan in revenue, a 2.97% year-on-year increase, yet the gross margin declined to 28.59%.

It is evident that behind these figures lies the harsh reality of intensified market competition, leading to increased revenue without commensurate profit growth.

Over-reliance on a Single Market

Transsion Holding's main products include TECNO, itel, and Infinix mobile phones, with sales concentrated in emerging markets such as Africa, South Asia, Southeast Asia, the Middle East, and Latin America.

IDC data reveals that Transsion holds over 40% market share in the African smartphone market, ranking first; similarly, it leads with over 40% in Pakistan, 29.2% in Bangladesh, and ranks eighth with 5.7% in India.

With its outstanding performance in overseas emerging markets, particularly Africa, Transsion has ascended to the top three global mobile phone brands. IDC data shows that in 2024, Transsion Holding accounted for 14.0% of the global mobile phone market share, ranking third globally.

However, over-reliance on a single market means that any fluctuations in that market will directly impact Transsion Holding.

Economically, Africa exhibits uneven development levels, with unstable political situations in some countries and frequent exchange rate fluctuations, posing potential risks to Transsion's operations. Additionally, African consumers have lower purchasing power and are highly price-sensitive. Transsion, which has long dominated the low- to mid-end market, faces limited profit margins.

Technologically, Transsion relies heavily on localized innovation but invests relatively little in core technology research and development. In 2024, Transsion Holding's R&D investment amounted to only 2.517 billion yuan, representing 3.66% of its operating revenue, an increase of merely 0.04 percentage points from the previous year.

With the rapid global adoption of 5G technology, Transsion lags behind its competitors in 5G mobile phone research, development, and promotion. If it fails to keep pace with 5G advancements, it will struggle to maintain a competitive edge in global markets, especially in emerging and developed markets where technological requirements are higher.

Transsion Holding recognizes the risks of over-reliance on the African market and is actively expanding into other emerging markets. However, its progress has been uneven. For instance, in the potentially vast Indian market, its market share stands at 5.7%, ranking eighth, with a gross margin significantly lower than in Africa.

Although Transsion Holding has created a business miracle in the African market, the risks associated with over-reliance on a single market cannot be overlooked.

Launching the African "Defensive Battle"

As China's domestic mobile phone market becomes increasingly saturated, brands like Xiaomi, OPPO, and realme have turned their focus to Africa. This influx has intensified competition, prompting Transsion to initiate a "defensive battle" in Africa.

Transsion's success stems from its deep understanding and precise positioning of the African market. For example, considering Africa's unstable power supply, Transsion mobile phones are equipped with large-capacity batteries. Addressing African consumers' unique skin tones, Transsion has optimized its mobile phone camera algorithms through technological innovation.

However, this successful model is not unassailable. As competitors enter the African market and learn from Transsion's localized strategies, its once-competitive advantages are gradually eroding.

Xiaomi, for instance, leverages its "localization" strategy to launch customized, cost-effective products tailored to local consumer needs, combined with an integrated online and offline marketing approach. Additionally, Xiaomi emphasizes brand building and market promotion, expanding sales channels and enhancing brand recognition through partnerships with local dealers.

Similarly, OPPO and realme utilize precise market positioning and robust channel construction capabilities. They have introduced multiple smartphones in the African market, catering to local consumer needs and enhancing their brand image and consumer satisfaction through extensive after-sales service networks, significantly boosting sales.

According to renowned market research firm Canalys, as of February 2025, Transsion leads the African smartphone market with a 51% share, followed by Samsung with 19%, Xiaomi at 10%, and realme, which boasts an impressive 89% growth rate.

These figures clearly indicate that Transsion's long-standing advantages in the African market are being gradually eroded by competitors, and its once-dominant position is no longer assured. Nonetheless, competition in the African market is just beginning, and while Transsion faces numerous challenges, opportunities abound.

Leveraging its brand recognition, user base, and years of localized operational experience in Africa, if Transsion can actively respond by continuing to focus on technological innovation, product upgrades, and market strategy adjustments, it still has the potential to excel in this fierce competition and retain its title as the "King of African Mobile Phones".

For Transsion, this African "defensive battle" is not just about maintaining its market position but also about shaping its future in the global mobile phone market. It must continuously adapt to market changes and meet consumers' diverse needs through product innovation, channel development, and marketing strategy refinements.

Can Diversification Break the Impasse?

Faced with competitive pressures in the global mobile phone market, Transsion is actively constructing a diversified business ecosystem encompassing "mobile phones + mobile internet services + household appliances, digital accessories, and other expanded categories," aiming to carve out new growth avenues amidst fierce competition.

In the home appliances and digital accessories sector, Transsion's digital brand oraimo, household appliance brand Syinix, and after-sales brand Carlcare form a comprehensive chain from products to services. In mobile internet services, Transsion has integrated localized applications for music streaming, news aggregation, and comprehensive content distribution.

Furthermore, Transsion has established business and technology platforms such as DataSparkle, an enterprise-level data insight platform; Dlight Cloud, the Transsion cloud ecosystem platform; EagleWin, a one-stop overseas marketing platform; and Hisavana, a media monetization tool, empowering global developers to expand their businesses in emerging markets across development, testing, promotion, and monetization.

This strategic layout is both a proactive move by Transsion, capitalizing on its accumulated advantages in the mobile phone sector, and a defensive measure against market uncertainty.

Through its diversified approach, Transsion has successfully constructed an intelligent ecosystem matrix encompassing hardware, software, and services. Mobile phones, as the core hardware, serve as the gateway for users to access the digital world and the carrier for other businesses. Mobile internet services offer users rich content and convenient functions, enhancing user engagement. The expansion into household appliances, digital accessories, and other categories further broadens user scenarios, catering to consumers' needs across various life contexts.

Certainly, Transsion Holding's diversified strategy presents both opportunities and challenges.

Firstly, expanding into mobile internet services, household appliances, digital accessories, and other sectors exposes it to fierce competition from industry giants. Secondly, the coordinated development of diversified businesses places higher demands on Transsion's technology integration and innovation capabilities. Thirdly, as its business diversifies, Transsion's organizational structure and management model must undergo significant changes.

In conclusion, Transsion's diversified strategy leverages its existing resources while also confronting numerous severe challenges. Whether it can achieve a breakthrough on the path of diversified development, open up new growth avenues in global market competition, continue the legend of the "King of African Mobile Phones," and progress towards becoming a global integrated technology enterprise remains to be seen over time.