Transsion, Nigeria’s leading smartphone seller, has become the fourth largest globally, with a nine percent market share in 2024. The company shipped 106.7 million units, highlighting its stronghold in Nigeria, where it holds 63% of the market. With a focus on localized product innovation and affordability, Transsion has capitalized on the growing need for smartphones amid increasing internet access.
Transsion, Nigeria’s leading smartphone manufacturer, has ascended to become the fourth largest globally, achieving a nine percent market share in 2024, according to Canalys research. The company, known for its brands Tecno, Infinix, and Itel, realized this milestone by shipping 106.7 million units, a growth of 15.23% compared to the previous year.
The importance of smartphones in Nigeria’s digital landscape is underscored by statistics from GSMA, which indicate a 59% penetration in urban areas and 26% in rural regions as of 2023. Transsion dominates Nigeria’s smartphone market with a 63% share, trailing only Apple, Samsung, and Xiaomi at 18% each, and OPPO at eight percent.
In 2024, the global smartphone market experienced a resurgence, growing by 7% to reach 1.22 billion units. In Africa, Transsion holds a commanding position with 49% of the market share. According to Canalys, the continent registered a nine percent year-on-year increase in smartphone shipments, despite a significant decline from the peak of 90.5 million units in 2021.
Nigeria stands as Africa’s largest phone market with a 14% share, in which Transsion accounts for 45% of the total market volume. From 2019 to 2023, Nigeria’s expenditure on telephones, including smartphones, reached $3.82 billion, with 74% of this amount, approximately $2.83 billion, being spent on imports from China.
Ifeanyi Akubue, President of the Phone and Allied Product Dealers Association of Nigeria, noted the pivotal role of Chinese phones in Nigeria’s digital expansion, highlighting their availability and affordability.
Transsion’s success can be attributed to targeted strategies since its inception in Nigeria in 2006. Key initiatives include local product customization, such as optimizing camera features for African skin tones and enhancing battery life to meet local demand for longer usage times without reliable electricity.
The brand’s strategy emphasizes affordability by providing budget-friendly smartphones with competitive specifications, which have been well-received in Nigeria’s price-sensitive market. This approach has enabled Transsion to capture significant consumer interest, especially among entry-level buyers.
Arnold Ponela, an IDC senior research analyst, explained that Transsion and Xiaomi significantly contributed to Nigeria’s robust growth in smartphone shipments, particularly within the entry-level market segment. Additionally, the company has built a strong offline retail and service network, allowing for extensive market coverage in both urban and rural areas.
Moreover, Transsion leverages its position in the feature phone market, transitioning users towards entry-level smartphones amidst Nigeria’s increasing internet access. The focus on devices with long-lasting batteries resonates with consumers facing power supply challenges, further bolstering its market leadership.
Despite its current dominance, competition is intensifying with brands like Xiaomi augmenting their entry-level product lines. In Q3 of 2023, Transsion and Xiaomi collectively accounted for 85% of Nigeria’s smartphone shipments, indicating a competitive landscape.
While Transsion remains the market leader, it will face challenges from established brands such as Samsung and new entrants like Realme. Sustaining an edge will necessitate continued innovation in affordability and durability, as well as local relevance in its offerings.
The growth trajectory of Nigeria’s smartphone market is promising, with 27 million citizens lacking access to telecom services and a burgeoning youth demographic. However, future growth may slow as the market nears saturation.
To maintain its momentum, Transsion must explore expansion into the premium segment, diversify revenue channels including mobile services, and invest in affordable 5G-ready devices. Pravinkumar expressed that continued innovation balancing affordability with cutting-edge features will shape the manufacturer’s path forward.
Ultimately, Transsion’s success story in Nigeria serves as a model for commanding a larger presence in Africa. As the market adapts to AI-driven innovations, the company must ensure brand loyalty while enhancing its ecosystem, particularly in premium and AI product offerings.
Transsion has emerged as Nigeria’s foremost smartphone manufacturer, achieving the rank of the fourth largest globally by adapting its products to local needs and maintaining competitive pricing. Their strategic focus on offline sales, branding, and product relevance has allowed for significant market penetration. To counter new competition and sustain growth, Transsion will need to innovate in premium offerings and diversify its revenue sources while addressing the needs of Nigeria’s growing population.
Original Source: businessday.ng
