Transsion records a significant increase in its turnover

2023-08-02 08:00:42

In Europe, the most famous Chinese manufacturers are without any doubt Oppo, Huawei, Xiaomi, Vivo or Realme. Compared to the latter, Transsion is clearly behind them. Its smartphone brands (Infinix, iTel and Techno) have not really made the European market a priority.

They have always preferred to offer people in developing countries alternatives to high-end smartphones, which are not affordable. A strategy that therefore continues to bear fruit with a second quarter marked by the seal of growth. This while already in 2022, Transsion had already been the Chinese manufacturer that best resisted the general decline in smartphone sales.

A second quarter of growth over the current financial year

Transsion announced, last week, a robust growth of its activities for the account of the quarter which has just passed. In particular, the company indicated a jump of 30.7% compared to the second quarter of 2022.

Thus, between March and June, the company’s turnover peaked at almost 2 billion euros. This allowed him to generate a profit which is estimated at 202 million euros. A figure that is almost double that recorded by Transsion during the past quarter. By comparing with the profits of the second quarter of the year 2022, we even see a spectacular increase, of almost 86%.

It should be noted, however, that these results are the logical continuation of the improvement recorded by the manufacturer since the beginning of 2023. During the first quarter, the company had already recorded a solid increase of 8% in its total revenues. . At the same time, its profit had seen a greater increase, reaching 27%.

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A strategic location that bears fruit

The firm itself attributes this significant growth to two main factors. The first relates to the markets in which it has chosen to establish itself. Indeed, Transsion is betting heavily on Africa and South Asia.

It thus benefits from the growing adoption of smartphones by populations in these two places on the planet. This allows him to reap significant profits despite the selling price of his devices. The African market, with its predominantly young population and rapid urbanization, is also crucial for Transsion. It constitutes nearly 40% of the company’s market share. A substantial part even if we are today, far from its peaks, 57% of shares reached in the past.

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The second factor that has allowed the Chinese manufacturer to maintain such high standards relates to the new models of mobile phones launched by its various brands. The company has invested heavily in development and research in recent years. It intends to stay the course in order to continue to improve its smartphones.

In addition, it should be noted that even if mobile phones represent 90% of its income, Transsion has been trying since 2019 to diversify its activity. It has since offered home gadgets, operating systems, and even a repair service called Carlcare. All this should allow it to maintain its earnings growth in the years to come.

Source : Gizmochina

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