Transsion Group Sets Sights on Top 5 Spot in Smartphone Market, Eyes India as Export Hub

Transsion Group, a Chinese smartphone manufacturer, is ambitiously aiming to break into the top five smartphone players by volume. The company also plans to establish India as a key export hub, according to CEO Arijit Talapatra.

Currently, Transsion Group holds the sixth position in the Indian smartphone market. The company is confident that it will break into the top five by the end of the year, primarily through its brands Tecno, Infinix, and iTel. Talapatra stated, “In India, we were at the sixth position, but this year we will be in the top five, while our Tecno itself will be the sixth-largest handset brand in India.”

Globally, Transsion Group is already among the top five smartphone brands and holds the number one position in markets such as Africa, the Philippines, and Bangladesh. The company aims to leverage this global presence to push exports from India to regions like Africa. Talapatra emphasized the importance of the Indian market, noting that 40% of smartphone consumption in India occurs in tier 3 and below markets.

Transsion’s strategy involves a clear segmentation of its brands. Tecno will drive the bulk of the business with products priced between Rs 7,000 and Rs 70,000. Infinix will focus on online channels with phones priced in the Rs 6,000-Rs 30,000 range, while iTel will continue to dominate the feature phone market and offer smartphones priced under Rs 10,000.

Why this matters: Transsion Group's ambition to become a top 5 smartphone player by volume and establish India as an export hub has significant implications for the global smartphone market and India's economy. This could lead to increased competition, job creation, and economic growth in the region.

To support its growth, Transsion has introduced Tecno Finance, a financing service aimed at driving growth in the premium segment. This service is available pan-India, including Kashmir. The company also plans to invest in product research and development, including AI, to increase awareness about its Tecno brand.

The company’s market performance has been noteworthy. Tecno saw a 20% year-on-year growth in the first quarter of 2024, and the share of 5G shipments in its portfolio jumped from 1% to over 10% as growing demand for 5G smartphones drove this trend. According to IDC, Transsion Group is the leading feature phone player with its iTel brand and ranks sixth in the smartphone market with a 7.8% share through Tecno and Infinix.

Transsion Group is also making strategic moves to boost exports. The company is partnering with e-commerce players to drive volumes for Tecno and is awaiting approval from the Competition Commission of India (CCI) for its deal with Dixon Technologies. This deal involves Dixon acquiring a majority stake in Ismartu India, a subsidiary of Transsion Technology, which will enable Transsion to leverage Dixon's production-linked incentive scheme (PLI) approved status to boost exports to various markets, including Africa.

With a clear strategy and ambitious goals, Transsion Group is set to make major gains in the smartphone market, both in India and globally. The company’s focus on tier 3 and below markets, along with its investment in R&D and strategic partnerships, positions it well for future growth.

Key Takeaways

• Transsion Group aims to break into top 5 smartphone brands by volume.
• India to be established as a key export hub, leveraging global presence.
• Tecno, Infinix, and iTel brands to drive growth, with clear segmentation.
• Investments in R&D, AI, and financing services to support growth.
• Partnerships with e-commerce players and Dixon Technologies to boost exports.