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Nairaland Forum / Science/Technology / Phones / Watch Out Transsion (Tecno): Samsung and Nokia are Coming for Your Lowend Market (3555 Views)
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Watch Out Transsion (Tecno): Samsung and Nokia are Coming for Your Lowend Market by ortakida: 5:40pm On Jan 04, 2020 |
Nokia and Samsung are Coming for Transsion’s Smartphone Market in Africa For many Africans, their first contact with a smartphone was a Transsion Holdings device. The company owns the Tecno, Infinix and Itel phone brands. Most of these devices are quite affordable (read cheap). One of Transsion’s oldest smartphones, the Tecno N3 released in 2012, retailed for just $81 or N12,956 ($1 equalled N159.95 in 2013). ![]() Considering that Africa is a low-income region, Transsion concentrated its effort on the low-end market. Its smartphones typically retailed for less than $400. Their devices mirror premium ones in terms of design and size, offering users the perception of elegance at a good price. Thanks to their low cost and early adoption of the Android OS, Tecno, Itel and Infinix showed people the power of the smartphone and helped to usher in the high smartphone adoption rates on the continent. Over the last eight years, Transsion has established itself as the biggest smartphone company on the continent. It controlled 34.4% of the African smartphone market in 2018. For the first 9 months of 2019, it posted revenue of $2.4 billion. The company said it has made over $334 million in profits, this is three times what it made in 2018. ![]() According to the latest smartphone data from the International Data Corporation, 22.65 million smartphones were sold on the continent in the third quarter of 2019. Transsion accounted for 36.2% or 8.2 million smartphones sold during this period, 100,000 more than the previous quarter. Its closest rivals, Samsung and Huawei sold 5.41 million and 2.49 million devices respectively. ![]() But Transsion’s lead in the market is being threatened as big brands are now adopting its strategy of selling low-cost devices. It focuses on three markets: ultra-low end (<$100), low-end ($100 – $200) and the mid-range ($200 – $400). So it’s not surprising that Transsion’s most expensive device is the Tecno Phantom 8 retails for around N140,000 ($386.21). By comparison, the high-end Samsung Galaxy S10 is sold for between N280,000 ($777) and N380,000 ($1,048). ![]() But since 2018, big brands are increasingly trying to break into Transsion’s stronghold. They are flooding the market with powerful devices that are sold for less than N90,000 ($250). Xiaomi has the budget and midrange devices under its Mi and Redmi series. Samsung 2019 A series include the A10, A20 and the A30. Meanwhile, Nokia is mostly focused on the budget phone market. Since HMD Global acquired the Nokia brand in December 2016, it has produced over 20 devices, but only one, the Nokia 9, retails for more than $600. The Nokia X6.1, a popular device which has 64GB storage, 6GB RAM, and runs on Android One, sells for just N52,000 ($143). But here’s the thing, even though these devices are low cost, they are very powerful and pack a number of impressive features. Here’s an example. The Nokia 3.2 was released in 2019. It comes with a 6.26-inch thin bezels screen, 3GB of RAM, 13 megapixels rear camera, 32GB of storage, 4G LTE, a Snapdragon processor. Perhaps more importantly, the device runs on Android 9 and is part of the Android One programme, meaning it will receive periodic OS updates including critical security patches from Google when they are available. Now let’s compare this with Transsion’s Tecno Pouvior. Also released in 2019, the Pouvior comes with a 6.2-inch screen, 2GB of RAM, 32GB of storage, 4G LTE, 13 megapixels cameras, 1.28GHz processor speed and uses the Mediatek processor. It runs on Android 8.1. The Nokia 3.2 is sold for ~N40,000 ($110.34) while the Tecno Pouvior sells for $107.59. ![]() Xiaomi’s Mi series and Samsung’s A Series also offer good examples. The Xiaomi Mi A3 is also a powerful device which retails for ~N80,000 ($220). Samsung A20, another somewhat premium device, retails for N54,000 ($148.97). So it’s not surprising that the availability of premium devices at affordable prices is beginning to make an impact. According to the IDC, more people bought low-end devices ($100-$200) in Q3 than Q2. “Samsung shook the market up this year with the launch of its new A series of devices,” said Taher Abdel-Hameed, a senior research analyst at IDC. In Q3 2019, Samsung recorded 61.4% growth in the sales of its low-end devices. Nokia is also growing. According to research by Counterpoint, Nokia was the fast-growing brand in Nigeria in Q2 2019. “The growth came from sales of Nokia 2.1, 3.1 Plus, and Nokia 6.1 Plus”, Counterpoint said. So why are people now willing to buy phones from more expensive brands like Samsung? Isn’t obvious? People want premium but can’t afford it. They want innovative designs, bigger screens, better cameras, 4G support, software updates, stronger brands, better experience and other trendy features that Transsion may not be big on. Big brands have latched on to this and now produce high-quality devices at affordable prices. Going forward, this consumer trend may continue. It will be up to Transsion to tweak its plans and offer people better options. If it doesn’t, other companies may squeeze it back to focus on the feature phone market. Source: https://techcabal.com/2019/12/27/watch-out-transsion-samsung-and-nokia-are-coming/ 3 Likes |
Re: Watch Out Transsion (Tecno): Samsung and Nokia are Coming for Your Lowend Market by fredie107(m): 6:12pm On Jan 04, 2020 |
It's becoming too late for the transsion company..... They were busy releasing the same phones over and over again by just changing name....... Samsung, Huawei, Xiaomi have already taken over. I used to be an infinix fan.... Mehnnnnn Since I bought and started using Samsung... No going back again. 12 Likes |
Re: Watch Out Transsion (Tecno): Samsung and Nokia are Coming for Your Lowend Market by Ejadike(m): 6:58pm On Jan 04, 2020 |
Transsion has solidify it's presence in the lower market, they've strived so hard to gain top of mind in the minds of average Nigerians whenever they think about getting an affordable phone. So Samsung et al has lots of work to do if they are gonna pose a threat. Forget wetin all this nairaland TECNO haters de form. 2 Likes 1 Share |
Re: Watch Out Transsion (Tecno): Samsung and Nokia are Coming for Your Lowend Market by Ejadike(m): 6:58pm On Jan 04, 2020 |
fredie107:thats just you out of like 100 million active smartphone users |
Re: Watch Out Transsion (Tecno): Samsung and Nokia are Coming for Your Lowend Market by drjprince: 8:13pm On Jan 04, 2020 |
Ejadike:solidify there presence with scraps I hope they pay you well this new year Mr marketer 8 Likes |
Re: Watch Out Transsion (Tecno): Samsung and Nokia are Coming for Your Lowend Market by Ejadike(m): 7:45am On Jan 05, 2020 |
drjprince:In discussions like this, I'll advice you not to chuk mouth cos you'll end up disgracing yourself cos you don't have any understanding of what I was talking about. You no know pass "Tecno is scrap". Make we get better conversation about wetin op post now, you no go fit last 5mins for discussion. Olodo buruku |
Re: Watch Out Transsion (Tecno): Samsung and Nokia are Coming for Your Lowend Market by edoairways: 8:59am On Jan 05, 2020 |
fredie107:Samsung, Huawei and Xiaomi are still learning. Their phones are still expensive for low income earners. |
Re: Watch Out Transsion (Tecno): Samsung and Nokia are Coming for Your Lowend Market by edoairways: 9:02am On Jan 05, 2020 |
Ejadike:Exactly! From my findings, many Nigerians still prefer techno and infinix to aforementioned rivals. |
Re: Watch Out Transsion (Tecno): Samsung and Nokia are Coming for Your Lowend Market by Ejadike(m): 7:49pm On Jan 05, 2020 |
edoairways:Yes cos Tecno and Infinix have done there homework already. |
Re: Watch Out Transsion (Tecno): Samsung and Nokia are Coming for Your Lowend Market by theoneJabulani(m): 7:59pm On Jan 05, 2020 |
Ejadike:Both of u keep deceiving yourselves, the only constant in this world is change. And thats something Transsion has refused to do. 7 Likes |
Re: Watch Out Transsion (Tecno): Samsung and Nokia are Coming for Your Lowend Market by innobarca(m): 8:58pm On Jan 05, 2020 |
Just like that Samsung A10s with shit camera and shit display at 43k. I will rather use Infinix Note 5 stylus at 40k to 42k. |
Re: Watch Out Transsion (Tecno): Samsung and Nokia are Coming for Your Lowend Market by edoairways: 9:00pm On Jan 05, 2020 |
Ejadike:I want other brands to theirs but they shouldn't spoil their competitor's name like their marketers does |
Re: Watch Out Transsion (Tecno): Samsung and Nokia are Coming for Your Lowend Market by Blastedholligan: 9:09pm On Jan 05, 2020 |
edoairways:exactly! People tend to spoil the names of these brands. The marketers are helping uphold the brand identity but other people are bent on spoiling there hardwork. This is a forum so there should be freedom of speech 1 Like |
Re: Watch Out Transsion (Tecno): Samsung and Nokia are Coming for Your Lowend Market by Blastedholligan: 9:10pm On Jan 05, 2020 |
Samsung has lots of work to do if they are serious about competing on the lower market |
Re: Watch Out Transsion (Tecno): Samsung and Nokia are Coming for Your Lowend Market by edoairways: 10:00pm On Jan 05, 2020 |
Blastedholligan:Yeah |
Re: Watch Out Transsion (Tecno): Samsung and Nokia are Coming for Your Lowend Market by Ejadike(m): 7:14am On Jan 07, 2020 |
edoairways:you mean Tecno Marketers spoil the name of other competitor brands? 1 Like |
Re: Watch Out Transsion (Tecno): Samsung and Nokia are Coming for Your Lowend Market by edoairways: 8:08am On Jan 07, 2020 |
Ejadike:Xiaomi and others do 1 Like |
Re: Watch Out Transsion (Tecno): Samsung and Nokia are Coming for Your Lowend Market by drjprince: 8:11am On Jan 07, 2020 |
Ejadike:it baffles me when Tecno marketers like you come out to spill trash, Tecno is a substandard product telling people it is not spoiling their name It is what they are,same thing applies to infinix, Scrappy phones 2 Likes |
Re: Watch Out Transsion (Tecno): Samsung and Nokia are Coming for Your Lowend Market by Mohbola(f): 1:30pm On Jan 07, 2020 |
Most people still use tecno, some people prefer it cos its relatively cheap. |
Re: Watch Out Transsion (Tecno): Samsung and Nokia are Coming for Your Lowend Market by maxwell530(m): 3:12pm On Jan 07, 2020 |
Samsung is still expensive, how can A10 still sells at 45k? |
Re: Watch Out Transsion (Tecno): Samsung and Nokia are Coming for Your Lowend Market by gloriaunobi(f): 3:39pm On Jan 07, 2020 |
Naso we dey hear, until Samsung A90 becomes 45,000..... Samsung and Nokia is a no-no for me |
Re: Watch Out Transsion (Tecno): Samsung and Nokia are Coming for Your Lowend Market by masterfactor(m): 4:21pm On Jan 07, 2020 |
RULE FOR 2020 1. DO NOT ARGUE WITH A TECNO MARKETER. 2. DO NOT EVER ARGUE WITH A TECNO MARKETER. 3. DO NOT EVER NEVER EVER NEVER ARGUE WITH A TECNO MARKETER. 2 Likes |
Re: Watch Out Transsion (Tecno): Samsung and Nokia are Coming for Your Lowend Market by Chuksteric(m): 7:01am On Jan 08, 2020 |
Ejadike:It's not just on nairaland.. whilst Tecno may have a little cult following, people keep looking for value for money. I got the Nokia X6 at 46k early last year and there's a huge difference.. from Android 8 I'm now on 10.. Camon 11 was sold at 76k then where's it now ? Camon 12 price had to go down because of the competition but there's really no difference in comparison with the 11. Ejadike I once told you to give feedback to your company even though you'll still deny the fact that you market their products lol. Users deserve value for money ! Don't think that you still have the crowd ... People are getting wiser each passing day.. Shalom 1 Like |
Re: Watch Out Transsion (Tecno): Samsung and Nokia are Coming for Your Lowend Market by drjprince: 7:08am On Jan 08, 2020 |
Chuksteric:ejadike is a zoombie marketer 1 Like |
Re: Watch Out Transsion (Tecno): Samsung and Nokia are Coming for Your Lowend Market by Chuksteric(m): 7:13am On Jan 08, 2020 |
drjprince:Guy stop it ... Marketers are human beings too.. There are so many ways to get the message passed without ... 1 Like |
Re: Watch Out Transsion (Tecno): Samsung and Nokia are Coming for Your Lowend Market by Ejadike(m): 2:54pm On Jan 10, 2020 |
Chuksteric:you are diverting from my point. Any brand that wants to take that lower market from TECNO must do enough work. |
Re: Watch Out Transsion (Tecno): Samsung and Nokia are Coming for Your Lowend Market by Ejadike(m): 2:56pm On Jan 10, 2020 |
drjprince:okay? Anything else your brain can process asides from always calling me a Marketer? See, no de mention me again, I want people with sound reasoning to mention me so we can have a decent and mental challenging conversation. You're just a waste man. 1 Like |
Re: Watch Out Transsion (Tecno): Samsung and Nokia are Coming for Your Lowend Market by drjprince: 3:17pm On Jan 10, 2020 |
Ejadike:am a waste but better than whoever came out of you family |
Re: Watch Out Transsion (Tecno): Samsung and Nokia are Coming for Your Lowend Market by Chubbyface: 6:14pm On Jan 10, 2020 |
Fingers crossed, let me see how this would turn out. Although transsion has already gained there ground. |
Re: Watch Out Transsion (Tecno): Samsung and Nokia are Coming for Your Lowend Market by Nobody: 6:27pm On Jan 10, 2020 |
So many peeps here just follow the bandwagon just to tanish the image of a company if you dont like a product look else where you guys bashing Transsion mobility how many of your so called Samsung,Apple,Xiaomi,Oppo,Huawei e.t.c do have an affordable phone under 30k the answer is NO everyone has his/her financial capacity. you think if they have the money they will not buy the quality samsungs and iphones biko you people should reason with your sense and not your Anus... -ogabentayga- say so |
Re: Watch Out Transsion (Tecno): Samsung and Nokia are Coming for Your Lowend Market by ortakida: 7:37pm On Jan 10, 2020 |
ogabentley: I find it fascinating that many comments so far make it seem as though the article is "bashing" Transsion. On the contrary, the article knows that they are doing so well and even mentioned that they grew their profits from around around $100m to $334m in just one year. That tells you they have strong market reach that won't go away all of a sudden. But what that revenue base also tells you is that the market for budget phones is now quite big and is going to grow even bigger. Big companies are spotting this and in 2020, many of them are looking to target it more. Samsung recently announced two Samsung Galaxy Lite devices that are going to target the mid-range and low end class. It also announced more Samsung A series devices. The A series are budget devices somewhat when compared to Samsung's premium devices. Meanwhile Apple also announced an iPhone SE2 which would cost less than $400. Then there is Nokia that has only ever produced one premium device ($500+ device) since 2016. If this trend continues, Transsion may see more budget friendly devices from these guys that would rival theirs in terms of pricing and quality. That is the real crux. It doesn't matter whether Transsion has haters or lovers, if these big brands enter their market segment the competition will be fierce. |
Re: Watch Out Transsion (Tecno): Samsung and Nokia are Coming for Your Lowend Market by Nobody: 7:52pm On Jan 10, 2020 |
i understand your point very well and i quite agree with you but what i'm trying to point out is the fact alot of peeps up there were bashing/looking down on the transsion mobility company forgetting the fact this same company made android cheap and affordable for the common man. 1 Like |
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