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, 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, which includes production, marketing, and even repairing or servicing of 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 clinches the fifth position 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 in total has 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 of using it. 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 effect of this kind of monopoly?
The example we gave above truly reflects this. Nigerians will get cheated out of unique phone experience, and since there is no healthy competition for Transsion Holdings, they may get away with producing inferior products.
Go to twitter, Nairaland, and Facebook; you notice that customers are always dishing out negative reviews and complaints. Quality compromisation is a reality every Nigeria endures. A phone may have 5,000 MAH battery with an inferior camera. It was reported that Tecno products are preloaded with malware. This is a reason to complain.
As there is no competition present in the smartphone market, one can’t help notice the increment in the price of phones. Newer models of Infinix and Tecno phone go for exorbitant price rates. This can significantly inconvenience Nigerians
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, while 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 market’. Inferior products by this smartphone producer. They can get away with shitty products because there is an understanding 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 phone as popularly referred to by Nigeria. The company began producing android phones in early 2014.
- The company has its headquarters in China and delved into the Indian phone market in 2016.
- Transsion Holdings is Africa’s largest phone manufacturer but is listed in 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.