Chinese smartphone vendor Transsion quietly emerged as China's second-largest supplier by global handset shipments, just behind Xiaomi, in the first quarter of 2024.
According to an IDC report, Transsion entered the top 5 global smartphone market for the first time in 2023, ranking behind Apple, Samsung Electronics, Xiaomi, and Oppo. In the first quarter of 2024, Transsion's performance surged with shipments growing 84.9% year-on-year, surpassing Oppo to claim the fourth spot globally, though it has not yet entered the Chinese market.
Market research firm Canalys reported that Transsion shipped 28.6 million smartphones globally in the first quarter of this year, exceeding Oppo's 25 million units. Though it trails Xiaomi's 40.7 million shipments, its growth momentum remains strong.
The report indicated that among the top 5 smartphone brands in the quarter, only Xiaomi and Transsion showed positive growth, with Xiaomi up 33% and Transsion up 85%.
Transsion's main market remains in Africa, with over 40% market share. It also leads in Pakistan and Bangladesh. Despite facing legal challenges, Transsion already holds an 8.2% market share in India.
In the competitive global mobile market, Transsion exemplifies a company quietly amassing wealth, largely outside China. Despite being less known domestically, it wields substantial global influence, diversifying beyond Africa.
Transsion's market diversification efforts have paid off. IDC data shows its 2023 global smartphone shipments hit 94.9 million units, entering the top 5 with 30.8% annual growth and 8.1% market share. From "King of Africa" to a global top 5 supplier, its shift to emerging markets in Latin America, South Asia, and Southeast Asia is evident.
In 2019, 75% of Transsion's revenue came from Africa, but by 2023, the corresponding ratio declined to 35.96%, reaching CNY 22.064 billion (US$3.04 billion). In contrast, its revenue from other regions increased to CNY39.256 billion in 2023, accounting for 64.02% of the firm's total revenue for the year.
Transsion's financial reports indicated that its "new market expansion strategy" began around 2015. After nearly a decade of deep cultivation in Africa, Transsion decided to expand beyond that continent. In 2015, Transsion entered Southeast Asia with Indonesia as its starting point. In 2016, Transsion began its sales deployment in India. After 2017, Transsion entered Latin American countries such as Colombia and Mexico.
In 2021, Transsion's revenue contribution from "Asia and other regions" was approximately equal to its revenue contribution from "Africa," reaching CNY 24.2 billion. Since 2021, Transsion's revenue in Asia and other regions has begun to exceed that of Africa and has shown a continuous growth trend.
In 2023, Transsion intensified its expansion efforts in South Asia, Southeast Asia, the Middle East, and Latin America. The company recognizes significant structural improvement opportunities and no longer relies solely on Africa, thus reducing its exposure to market saturation risks.
