Transsion Holdings, often hailed as the 'smartphone king of Africa', is currently facing significant challenges as competition intensifies from rivals like Xiaomi and Realme. In the third quarter of 2024, Transsion reported a staggering 41% drop in net income, amounting to 1.05 billion yuan (approximately US$144 million), alongside a 7.2% decrease in revenue, which fell to 16.7 billion yuan [4099aea5]. This decline has resulted in a reduction of Transsion's market share from 47.5% to 41.2%, while its handset sales plummeted by 17% year-on-year [4099aea5].
In contrast, competitors are thriving; Xiaomi's sales surged by 46% year-on-year, while Realme experienced a remarkable 90% increase in sales during the same period [4099aea5]. Samsung also reported a 9% growth, indicating a robust demand for smartphones across the continent. Notably, Tecno, a brand under Transsion, managed to increase its market share from 25.7% to 27%, further highlighting the competitive landscape [4099aea5].
The overall African smartphone market, however, grew by 11% year-on-year in Q3 2024, suggesting that while Transsion is struggling, there is still a healthy demand for smartphones in the region [4099aea5]. Rising component costs, particularly for memory chips, have been cited as a significant factor impacting Transsion's profitability, reflecting broader supply chain challenges that are affecting all brands in the market [4099aea5].
Geopolitical tensions and fluctuating economic conditions are also playing a role in shaping the competitive dynamics within Africa's smartphone market. As Transsion navigates these challenges, the question remains whether it can reclaim its position as the leader in a rapidly evolving landscape [4099aea5].