TRANSSION(SH:688036) 21世纪经济报道·2025-05-10 08:23Core Viewpoint - Transsion Holdings, known as the "King of Africa" in the mobile phone market, is facing unprecedented challenges despite its previous rapid growth and significant market share in Africa [1][2]. Group 1: Financial Performance - In Q1 2025, Transsion's revenue declined by 25.45% and net profit dropped by 69.87%, indicating a nearly 70% reduction in profitability compared to the same period last year [3][4]. - In 2023, Transsion experienced a remarkable net profit increase of 123%, positioning itself among the top five global smartphone manufacturers [4][6]. Group 2: Market Challenges - Increased competition from other Chinese manufacturers has emerged, particularly in the sub-$100 price segment, which has traditionally been Transsion's stronghold [6][7]. - The overall African market is facing growth bottlenecks due to economic and currency fluctuations, impacting both supply and demand for smartphones [6][7]. Group 3: Strategic Adjustments - Transsion has recognized the risks of focusing solely on the African market and has expanded its sales in other Asian countries, with revenue from Africa decreasing from 70% to 36% of total income by 2023 [7][8]. - The company has successfully penetrated Southeast Asian markets, particularly in Indonesia and the Philippines, by offering affordable smartphones priced under $100 [7][8]. Group 4: Supply Chain and Pricing Strategy - Transsion's supply chain strategy involves sourcing components from non-leading suppliers, giving it significant influence over its supply chain, similar to Apple's model [8]. - In 2023, Transsion adopted a low-price, high-spec strategy, increasing memory without raising prices, which proved effective but is now challenged by global economic pressures [8].