In recent years, Transsion Holdings has spared no effort in catering to overseas users—a fact reflected in each of the company’s annual reports.
To accommodate consumers who prefer dining with their hands, for instance, Transsion designed its gesture unlock feature to work even when fingers are greasy. In Southeast Asia, it adapted a successful photo optimization feature from its African product line, tweaking beauty filters to reflect the region’s diverse ethnicities and aesthetic preferences.
These subtle yet culturally attuned features have showcased Transsion’s deep understanding of emerging markets. For a time, it built a strong brand moat, especially as few smartphone makers prioritized markets like Africa and Latin America.
That landscape has now shifted dramatically.
In its 2024 annual report released on April 24, Transsion reported operating revenue of RMB 68.715 billion (USD 9.6 billion), up 10.31% year-on-year (YoY). However, net profit attributable to shareholders rose by just 0.22% to RMB 5.549 billion (USD 776.9 million), while net profit excluding non-recurring items fell 11.54% to RMB 4.541 billion (USD 635.7 million).
Transsion attributed the growing gap between revenue and profit to intensifying competition and rising supply chain costs, both of which pressured gross margins and trimmed earnings.
Put simply, competition in emerging markets is heating up, especially in Africa, Transsion’s historical stronghold. Xiaomi and Realme are gaining ground quickly, with Realme posting YoY growth exceeding 89%. Once a barrier to entry for domestic competitors, Transsion’s continent-wide distribution network is no longer insurmountable. Rivals are catching up.
Xiaomi is capitalizing on its value-for-money appeal and localized fan engagement. Vivo is doubling down on tailored overseas strategies, and Realme is targeting young, trend-savvy consumers.
The same approach is playing out in Southeast Asia, Latin America, and the Middle East. The objective is clear: capture Transsion’s market share.
Transsion’s low-price strategy remains a core strength, but it also limits its ability to move upmarket. In a mature global smartphone supply chain, big players willing to sacrifice margins can easily outscale smaller rivals. That puts Transsion in a precarious spot.
Despite selling over 200 million phones last year, its latest financials appear lukewarm, underscoring how hardware-centric markets often consolidate around a few giants.
Still, no smartphone maker understands Africa quite like Transsion. It had a front-row seat as the continent transitioned from feature phones to smartphones. According to IDC, Transsion held over 40% of Africa’s smartphone market in 2024, ranking first. The region contributed RMB 22.719 billion (USD 3.2 billion) in revenue, up 2.97% YoY and accounted for over 35.95% of total company revenue.
Africa also delivered Transsion’s highest gross margin: 28.59%, compared to just 17.66% across other parts of Asia.
This translated into RMB 6.495 billion (USD 909.3 million) in gross profit from Africa alone. In comparison, its combined gross profit from South Asia, Southeast Asia, the Middle East, and Latin America was RMB 7.901 billion (USD 1.1 billion). These figures reflect years of investment in brand building and distribution infrastructure across the continent.
Penetrating the African market requires deep integration into local sales channels. Offline purchases dominate, and fragmented logistics mean consumer goods must pass through multilayered distribution chains to reach end users.
From its earliest days in Africa, Transsion built a grassroots network of independent retailers—small family-run shops and wholesalers. Through close partnerships and sustained investment, it developed a three-tier distributor system, with a typical 30% markup from factory to final sale. In key markets, Transsion assigns reps to work directly with priority distributors, maintaining real-time communication, gathering feedback, and responding quickly to shifts on the ground.
This approach gave the company a dense offline footprint. Even in remote desert towns, it’s common to see corner shops doubling as phone repair stations, charging hubs, and top-up points for prepaid plans.
By contrast, other Chinese brands historically favored chain distributors, telecom operators, and e-commerce platforms. Xiaomi and Oppo entered Africa in 2014, followed by Vivo and Realme in 2019. But early efforts to transplant China’s go-to-market strategy largely failed. By 2024, under growing pressure to expand, these brands had begun adopting and even extending Transsion’s approach.
Xiaomi pushed low-cost Redmi devices such as the A2, Note 12 4G, 12, and 12C to capture budget-conscious users. Its bestsellers, the Redmi 10A and 12C, sell for just USD 75 and USD 95, respectively.
Canalys analyst Manish Pravinkumar noted that Xiaomi posted 22% growth in Africa in Q4 2024, driven by campaigns in Egypt, Nigeria, and West African markets like Cameroon and Ghana. Realme, riding the momentum of its Note series, recorded a 70% YoY surge in the same quarter.
Transsion’s ads and niche features once stood out when competitors ignored Africa, but that edge was never going to last forever.
To its credit, Transsion has long been forward-looking. Even at its peak in Africa, it was expanding elsewhere. The company entered Indonesia in 2015, followed by India and, later, Latin America—with launches in Colombia and Mexico by 2017.
In its 2024 annual report, Transsion highlighted a multi-brand strategy to consolidate and grow its footprint in emerging markets. According to IDC, it ranked first in Pakistan with over 40% market share, first in Bangladesh with 29.2%, and eighth in India with 5.7%.
It is following a similar playbook in Latin America and the Middle East.
In Latin America, Transsion replicated its Africa strategy: affordable pricing, local distribution partnerships, and market-specific focus. When LG exited Brazil, Transsion partnered with local electronics firm Positivo Tecnologia, granting it exclusive rights to manufacture and sell Infinix phones in the country.
In the Middle East, Transsion leaned heavily on aggressive pricing. It sells phones in Iraq for USD 60–150, while competitors like Oppo and Realme offer models starting at USD 100 and reaching up to USD 300. Transsion’s entry-level devices are bundled with user guides and service guarantees to simplify onboarding for first-time smartphone users.
Despite these differentiators, Transsion is now entrenched in a battle with other Chinese smartphone brands. Canalys reports the Middle East smartphone market (excluding Turkey) grew 14% in 2024—double the global rate. The top three brands were Samsung, Transsion, and Xiaomi. Xiaomi’s shipment volume jumped 33% YoY, compared to just 9% for Transsion. Honor saw the biggest spike: 67%.
In Latin America, 2024 shipments hit a record 137 million units, fueled by deep discounting. Phones priced under USD 300 made up 72% of all shipments.
Xiaomi led the pack with 22.7 million units shipped. Transsion secured fourth place with 12.8 million units and 40% growth. Honor entered the top five with a 79% YoY surge, shipping 8 million units.
The budget segment has long been Transsion’s domain, but now it’s more crowded than ever. In today’s highly refined supply chain ecosystem, success depends less on specs and more on brand strength and operational mastery. These traits determine whether a company can survive the intensifying fight for overseas markets.
For Transsion, the pressure is mounting. Without a decisive breakthrough, its best years may already be behind it.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Leslie Zhang for 36Kr.