Core Viewpoint - Transsion Holdings, once known as the "King of Africa," is facing significant challenges, including a sharp decline in net profit and market capitalization, raising questions about its ability to maintain its leading position in the African smartphone market [1]. Financial Performance - In the first half of 2025, Transsion reported revenue of 29.077 billion yuan, a year-on-year decline of 15.86%, and a net profit attributable to shareholders of 1.213 billion yuan, down 57.48% year-on-year [2]. - The company has experienced four consecutive quarters of declining performance since Q3 2024, with Q1 2025 net profit dropping by 69.87%, marking the largest quarterly decline since its IPO [4]. Market Position and Competition - Transsion's stock price has fluctuated significantly, with a market capitalization shrinking from nearly 200 billion yuan at its peak to below 100 billion yuan [3]. - Despite holding the largest share of the African smartphone market, Transsion's market share fell from 52% in Q1 2024 to 47% in Q1 2025, with shipments decreasing to 9 million units, making it the only brand among the top five to experience a decline [5]. - In Q2 2025, Transsion's market share rebounded to 51%, but competitors like Xiaomi and Honor saw significant growth in shipments, with Xiaomi increasing by 32% and Honor by 161% [6]. Profitability Challenges - The gross margin in Transsion's core African market has declined, with revenue from the region at 22.719 billion yuan in 2024 and a gross margin of 28.59%, indicating pressure on profitability from increasing competition [7]. Strategic Initiatives - Transsion is actively seeking new growth avenues through diversification and targeting the high-end market, launching AI smartphones, laptops, and smart glasses under its TECNO brand [9]. - The company is also exploring new business lines in emerging markets, including home appliances and mobile internet services, and has established a new division to enter the two-wheeled electric vehicle market [12]. Future Outlook - Despite the initiation of diversification and high-end strategies, Transsion's efforts are still in the early stages, and it remains uncertain whether these initiatives will translate into significant sales and profits [10][11].

Core Viewpoint - Transsion Holdings, once hailed as the "King of Africa," is facing significant challenges, with a sharp decline in both revenue and net profit, raising concerns about its ability to maintain its market position [2][4]. Financial Performance - In the first half of 2025, Transsion reported revenue of 29.077 billion yuan, a year-on-year decline of 15.86%, and a net profit attributable to shareholders of 1.213 billion yuan, down 57.48% year-on-year [2]. - The company has experienced four consecutive quarters of declining performance since Q3 2024, with Q1 2025 net profit dropping by 69.87%, marking the largest quarterly decline since its IPO [4]. Market Position and Competition - Transsion's market share in Africa fell from 52% in Q1 2024 to 47% in Q1 2025, with shipments decreasing to 9 million units, making it the only brand among the top five to experience a decline [5]. - Despite a recovery to 51% market share in Q2 2025, competitors like Xiaomi and Honor have shown significant growth, with Xiaomi's shipments increasing by 32% and Honor's by 161% [5][6]. Profitability Challenges - The gross margin in Transsion's core African market has declined, with revenue in 2024 amounting to 22.719 billion yuan and a gross margin of 28.59%, indicating pressure on profitability from competitors [7]. Strategic Initiatives - Transsion is exploring diversification and high-end market strategies, launching new products such as AI smartphones and smart glasses under its TECNO brand, aiming to create an "AI ecosystem" [9]. - The company is also venturing into new markets, including home appliances and digital accessories, and has established a mobility division to enter the electric two-wheeler market [10]. Investment Activities - Transsion has invested in private equity funds targeting the electric two-wheeler industry, indicating a strategic shift towards industry collaboration and diversification [11].

Core Insights - By 2028, book-style foldable smartphone sales are expected to approach 4 million units, accounting for over 2% of total smartphone sales, with a nearly 10% market share in the high-end segment in Europe [1][9] - 2024 is a pivotal year for the European foldable smartphone market, with a projected 37% year-on-year growth in sales, driven primarily by book-style foldable models, which are expected to see a 60% increase [1][9] - The competitive landscape is intensifying, with Samsung's market share dropping from 98% in 2022 to 73% by the end of 2023 due to new entrants like Honor, Google, and others [2][3] Market Dynamics - Honor's Magic V2 has captured 27% of the European book-style foldable smartphone market, and the upcoming Magic V3 is anticipated to further enhance its position [3][6] - Samsung is set to launch the Galaxy Z Fold7 in July 2025, which is its thinnest and lightest foldable smartphone to date, potentially regaining market competitiveness [6][8] - Google and other manufacturers are also ramping up their efforts in the European foldable smartphone market, indicating a new phase of industry growth [7][9] Future Projections - Apple is expected to enter the foldable smartphone market in 2026, which will further intensify competition and potentially accelerate market growth [9] - Despite a projected decline in foldable smartphone sales in the first half of 2025 due to a lack of technological innovation and macroeconomic factors, a rebound is anticipated in the latter half of the year [9][10]

Core Insights - 2024 is a pivotal year for the foldable smartphone market in Europe, with a projected 37% year-on-year growth in sales, despite currently representing only about 2% of total smartphone sales in the region [2] - The primary driver of this growth is the book-style foldable smartphones, which are expected to see a 60% increase in sales [2] Group 1: Market Dynamics - The competition in the foldable smartphone market is intensifying, with Samsung's market share dropping from 98% in 2022 to 73% by the end of 2023 due to new entrants like Honor, Google, and OnePlus [3] - Honor's Magic V2 has gained significant traction, accounting for 27% of book-style foldable smartphone sales in Europe, and the upcoming Magic V3 is expected to further enhance its market position [4] - Samsung's Galaxy Z Fold7 is anticipated to be its most advanced foldable smartphone yet, addressing previous technological gaps [8] Group 2: Future Projections - By 2028, book-style foldable smartphone sales are expected to exceed 2% of total smartphone sales in Europe, capturing nearly 10% of the high-end smartphone market [4][11] - Apple's entry into the foldable smartphone market in 2026 is expected to further accelerate competition and innovation, particularly in high-end segments [11] - The foldable smartphone market is projected to experience a rebound in sales in the second half of 2025, following a decline in the first half due to macroeconomic factors [11]