Made in China

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This week we’re talking about how a phone company from China won over Africa

Let’s get into it!

In 1996, George Zhu Zhanjiang, a 23-year-old fresh grad in China, landed a job at Ningbo Bird.

It was a huge name in Chinese phones.

And his job was selling pagers— little gadgets people used to only receive text messages.

Zhu Zhanjiang moved up fast and became a sales manager.

And by 2003, when the company hit a ceiling in China, he pushed them to expand globally.

He took Ningbo Bird to over 90 markets across South Asia, Latin America, and Africa, growing its sales along the way.

In these emerging markets, he noticed there were hardly any phones because the infrastructure just wasn’t there.

So in 2006, he walked away from Ningbo Bird to strike out on his own.

The plan?

Make phones that were easy on the wallet and built for emerging markets.

He set up a factory in Hong Kong.

And Transsion—now Africa’s biggest phone maker—came to life.

They started out in South Asia.

But by 2008, after connecting the dots from his trips to Africa, Zhu Zhanjiang decided to build phones for the continent.

Why Africa?

In 2003, when Zhu Zhanjiang first visited Africa, the continent was about to see a huge cellphone boom.

We’d skipped landlines, which had only 3% reach and barely touched rural areas where most people lived.

People were hungry for a cheaper, reliable way to connect.

So to fill in this gap, cell providers - like Safaricom and MTN - started acquiring licenses and setting up towers.

It paid off.

By 2004, cellphone connections in Africa shot up to 53 million, compared to just 17 million in 2001.

Nokia, a Finnish phone maker, had the market wrapped around its finger.

They made sturdy phones.

But their prices left many people out, and they weren’t designed for Africa.

They only had one SIM card slot, which worked in places where you only need one reliable cell network.

But in Africa, cell providers were unreliable, so one sim card wasn’t enough.

Cracking phones in Africa

Since launching in Africa is 2008, Transsion has come a long way.

Last year, they sold 95 million phones in Africa—a 30.8% jump from 2022, beating every other phone maker in the world.

For context, Apple’s growth was 3.7%, while Samsung, Xiaomi, and OPPO all shipped fewer phones compared to the previous year.

Transsion’s brands—Tecno, Infinix, and Itel—which you’ve probably heard of, now own 48% of Africa’s smartphone market.

It’s clear that Transsion is on top. But cracking the phone market across Africa wasn’t easy.

So, what does it take to build the biggest phone company on the continent?

1) Price tags make or break it

Phones are essential, but when money's tight, they’re up against food and shelter.

Transsion realized this.

Itel, one of Transsion’s brands, is known for being ridiculously affordable.

In August 2019, eight out of the top 10 highest-selling phones were from their brands.

The cheapest phone on the list?

Itel’s IT1406, going for just $35.

For comparison, Huawei’s cheapest phone, the Y6 Pro, was priced at $101.

Obviously, Itel is not the phone you’d pick for fancy features, but that’s the point.

To keep prices low, Itel decided to skip the extras:

• Smaller screens instead of big touchscreens

• Single cameras instead of fancy multi-lens ones

• And just enough power to handle calling, texting, and browsing the internet

But price isn’t everything.

Transsion did something else that got customers to come back and tell others.

2) A phone that gets Africa

When Transsion sold their first phone in Nigeria, Nokia had a strong grip on the market.

But they were selling the same phones across Africa that they sold in the US, India, and Indonesia.

Transsion played a different game.

They were the first to launch dual and triple-SIM card slots in their phones.

And this meant better signal since people could pick from three options with one phone.

It helped Transsion grow fast. And by 2015, Nigeria had the most dual-SIM users in the world.

And then, when smartphones came around, Transsion went right at the big guys. Again.

Of lights and cameras

A good camera is a must-have once the price checks out.

But plenty of phones, even high-end iPhones, have been called out for not capturing dark skin tones properly.

Transsion stepped up and did something about it.

They invested heavily into a research project, studying millions of photos of dark skin tones and focusing on facial features.

The result?

Cameras that truly highlight darker skin tones, and take great photos in low light or at night.

Last year, Tecno launched a new imaging technology called Universal Tone.

And using AI, it fine-tunes skin tones in photos, making sure everyone looks their best, no matter their color.

3) Building an ecosystem

When you think of a tech product ecosystem, Apple’s quickly comes to mind.

Your Apple Watch wakes you up and sends sleep stats to your iPhone.

On your morning run, your AirPods play your Apple Music playlist.

And at work, your MacBook has all your iPhone notes, thanks to iCloud.

Transsion built its own product ecosystem.

And it made using their phones compelling.

In 2009, they were the first phone company from outside Africa to open a repair center, called Calcare.

It handles repairs, software upgrades, and even lets you trade in your old phone for a new one.

And last year, the Carlcare App hit 50 million active monthly users.

But Transsion’s ecosystem goes beyond the Carlcare app.

Transsion also owns Oraimo - the biggest brand in Africa for phone accessories like chargers, bluetooth speakers, power banks, and smartwatches.

Oraimo products sync with all Transsion phones.

So if you lose your charger or earphones, they’re easy to replace.

By 2021, Oraimo sold 100 million products worldwide, helping Transsion grow beyond just phones.

Transsion’s next big play in this ecosystem?

Fintech.

Transsion co-owns PalmPay, a fintech that lets you send money, pay bills, and even get a loan from your phone.

Back in 2019, they led a $40 million raise to help PalmPay enter Nigeria.

Now, PalmPay has more than 30 million users in Nigeria and have expanded into Ghana and Tanzania.

Their biggest growth tactic?

The PalmPay app comes pre-loaded on Transsion phones, making it easy for people to get started.

Transsion has done a few things right to crack phones in Africa:

• Their pricing hit the sweet spot in a continent where budgets are (mostly) tight

• Making phones built for local conditions kept customers locked in

• And by adding accessories, aftersales service, and fintech, they’ve created an ecosystem that makes their phones easy to use.

But hitting milestones opens the door to new ones. And I’m waiting to see what’s next for Transsion.

What did you find most interesting about how Transsion became Africa’s biggest phone company?

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