#记录我的2024#在世界手机市场上, in addition to Apple, Samsung, and domestic giants Huawei, Xiaomi, OPPO, VIVO, and Honor, there is also a company that most people are not familiar with, which is also from China, but it is a flower inside the wall and a fragrance outside the wall, Transsion's net profit increased by more than 2 times in the first quarter of this year, which makes people wonder why the king of African mobile phones is so fierce?
1. Transsion Holdings' net profit in the first quarter increased by more than two times?
According to a report by the Science and Technology Innovation Daily, Transsion Holdings released its financial report for the first quarter of 2024. According to the financial report, in the first quarter of 2024, the company achieved operating income of 17.443 billion yuan, a year-on-year increase of 88.1%, a net profit of 1.626 billion yuan, a year-on-year increase of 210.3%, and a net profit of 1.354 billion yuan, a year-on-year increase of 342.59%.
Regarding the change in performance, the company said that the revenue growth was mainly due to the continuous development of emerging markets and the promotion of product upgrades, and the overall shipment growth, while the net profit growth was mainly due to the increase in operating income, the increase in gross profit, and the decrease in expense ratio.
For the 2024 full-year performance outlook, the above-mentioned staff said that from the perspective of the overall market trend of mobile phones, the market recovery this year is expected to be better than last year. On the one hand, the company's traditional advantages in Africa, South Asia market, sales scale has recovered, on the other hand, the company is also continuing to expand Southeast Asia, the Middle East, Latin America and other emerging markets, compared with Africa and Bangladesh and other countries and regions, the company in Africa and South Asia outside the market, is expected to become a new profit growth point.
Transsion Holdings' main products are mobile phones under the three major brands of TECNO, itel and Infinix, including feature phones and smartphones. The sales area is mainly concentrated in the global emerging market countries such as Africa, South Asia, Southeast Asia, the Middle East and Latin America. In the first quarter of 2024, Transsion Holdings' gross profit margin was 22.15%, down 1.21 percentage points year-on-year and 2.3 percentage points quarter-on-quarter.
2. Why is the king of African mobile phones so fierce?
The news of Transsion Holdings' sharp increase in net profit in the first quarter has undoubtedly attracted widespread attention in the mobile phone industry. The company, known as the "king of mobile phones in Africa", has shown strong competitiveness and market potential with its outstanding performance in emerging markets. So, why has Transsion Holdings been able to achieve such rapid growth?
First of all, from the perspective of production and sales, Transsion Holdings achieved a significant double-digit increase in production and sales in 2023. According to the disclosed data, its production volume increased by 28.51% over the previous year, and its sales volume increased by 24.3%, which directly reflects Transsion's efficient operation ability in mobile phone manufacturing and marketing. Behind the rapid growth figures is TRANSSION's outstanding performance in supply chain management, product research and development, and market demand. At the same time, the strong production capacity ensures the supply of the market, while the rapidly rising sales figures confirm the high acceptance and loyalty of consumers to its products.
Secondly, Transsion has made a milestone breakthrough in mobile phone shipments, surpassing well-known brands such as Xiaomi and OPPO, and ranking third in the world, second only to Apple and Samsung, two international giants. This achievement shows that TRANSSION has seized an important market share in the global mobile phone market, especially in emerging markets, with precise product positioning, design that meets local needs, and a highly competitive price strategy. The continuous growth of its shipments means that the brand influence and market recognition continue to improve, which translates into real profit growth points.
Third, Transsion's deep cultivation in emerging markets is one of the key factors for its excellent performance. Especially in the African market, Transsion Holdings has more than 40% of the smartphone market share, showing an unrivaled leadership position. In addition, the company has established a solid foothold in Southeast Asia and South Asia, where its large population base and economic development potential provide it with broad room for growth. By deeply understanding and satisfying the needs of local users, such as developing products with functions such as long standby, multi-card slots, and high-quality music playback, Transsion has successfully established its own unique competitive advantage in a highly competitive industry.
Fourth, Transsion's long-term first-mover advantage has built a deep and wide moat. It not only innovates in hardware design and price strategy to adapt to the habits and purchasing power of consumers in various regions, but also carries out all-round localized operations in software applications, after-sales service, brand building, etc. For example, the launch of photography technology, music services and mobile payment solutions that meet the tastes of African consumers has made the Transsion brand deeply rooted in the local people's hearts and created a competitive barrier that is difficult to replicate.