See How Transsion Holdings Produces High End Smartphones like Infinix, Tecno and Itel. Checkout here.
In case you are not aware, a Chinese company produces Itel, Tecno, and Itel products. This company also owns several after-sale service brands like Carlcare and Oraimo. The name of this company is Transsion Holdings. It is currently Africa’s biggest smartphone producer. Surprisingly, a lot of Nigerians and other Africans are not aware of it. But worry not. We are here to give you the full gist.
Transsion Holdings and Android smartphones
There are more than 30million smartphone users in Nigeria. That is a safe estimate. The latest statistics predict that in 2024, the number may go as high as 100 million. This shows that the Nigerian mobile landscape is poised for significant growth, and there is potential for huge profits for the smartphone value chain, including production, marketing, and even repairing or servicing smartphones.
According to Global Stats Counter, Tecno holds the most significant market share of smartphones. Market share of smartphones, in this context, refers to the product that has the highest portion of buyers. Tecno has 26.95% of smartphones in Nigeria, followed by Infinix with 20.81%. Samsung comes third with 12%, while Apple ranks fifth with 6.74%. Itel has a market share of 6.27%.
This means that Transsion Holdings controls half of the smartphone market in Nigeria. Transsion holdings produce Itel, Infinix, and Tecno phones, which have a market share of more than 50%. Transsion holdings maintain a near-monopoly of the Nigerian mobile phone industry. What does this mean for smartphone users?
The consequences of Transsion holdings ‘near-smartphone monopoly.’
Imagine this scenario: You use a Tecno phone and grow dissatisfied with it after some months. You decide to scout the market and get a replacement. Infinix phone catches your fancy, and you purchase it, and you realize it has the same issues that made you dump your Tecno phone, and you yearn for an alternative. After some months, you shop and decide to get an Itel phone, landing yourself in a sad situation.
That anecdote is a reality for many Nigerians as they have a lesser chance of a phone with a truly unique experience because almost all the phones can think of buying (Itel, Infinix, and Tecno) have the same manufacturer (Transsion holdings). It is noteworthy that the manufacturer is different from the brand.
So what truly are the negative effects of this kind of monopoly?
Read: How to Hide Apps on Android Phones
Costumer Exploitation
The example we gave above truly reflects this. Nigerians will get cheated out of a unique phone experience, and since there is no healthy competition for Transsion Holdings, they may get away with producing inferior products.
Angry customers
Go to Twitter, Nairaland, and Facebook; customers are always dishing out negative reviews and complaints. Quality compromisation is a reality every Nigerian endures. A phone may have a 5,000 MAH battery with an inferior camera. It was reported that Tecno products are preloaded with malware. This is a reason to complain.
Increased price
As there is no competition present in the smartphone market, one can’t help but notice the increment in the price of phones. Newer models of Infinix and Tecno phones go for exorbitant price rates. This can significantly inconvenience Nigerians.
Price discrimination
Price discrimination is an economic term that describes a phenomenon where identical or broadly similar goods or services are transacted at different prices by the same provider in different markets. Sounds familiar? Tecno and Infinix phones are sold to seemingly well-to-do Nigerians. At the same time, Itel product is targeted to those who are not financially buoyant in the name of ‘budget-friendly.’ A monopolistic strategy by Transsion holdings.
Poor Quality goods
In the local parlance of Nigerians, ‘dem plenty for the market.’ Inferior products by this smartphone producer. They can get away with shitty products because they understand that the product will still sell, and there is no alternative.
Facts about Transsion Holdings
- Transsion Holdings was created in 2006 and entered the Nigerian market in 2008 with the manufacturing and sale of ‘dumbphones’ or china phones as popularly referred to by Nigeria. The company began producing android phones in early 2014.
- The company’s headquarters in China delved into the Indian phone market in 2016.
- Transsion Holdings is Africa’s largest phone manufacturer but is listed on the Shangai Stock Exchange.
- Transsion Holdings won the hearts of its Nigerian customers when their phones were aligned to fit in with the ‘Nigerianistic’ demands like Dual SIM slot and long battery life.
Why is Infinix the best Nigerian phone brand?
Infinix is one of Nigeria’s most well-known smartphone manufacturers. However, because the company now offers various options in various price ranges, you are only constrained by your budget. So here’s a list of Infinix phones to select from, each with the ideal blend of performance and features for the price range.
INFINIX HOT 9 PRO
The Infinix Hot 9 Pro, which was released on June 5, 2020, has a 6.6-inch display with a resolution of 720 x 1600 pixels. The smartphone is powered by a Mediatek MT6762 Helio P22 CPU with a clock speed of 2.0 GHz and 4 GB of RAM.
INFINIX SMART 5
The Infinix Smart 5 was released on February 13, 2021, and features a 6.82-inch display with a resolution of 720 x 1640 pixels. The smartphone is backed by a MediaTek Helio G25 CPU with two 2.0 GHz cores and six 1.8 GHz cores and 2 GB of RAM.
INFINIX SMART 4
The Infinix Smart 4 was released on December 12, 2020, and features a 6.82-inch display with a resolution of 1640 x 720 pixels. The Smart Phone is powered by a Mediatek MT6761 Helio A22 quad-core processor with 2 GB of RAM.