Source: Transsion

As iPhone sales continue to dip and Apple is paying more attention to its services, the Chinese phone manufacturer leading the market in Africa, Transsion Holdings, seems to be toeing the same line and developing a service portfolio for itself. Transsion’s Infinix and Tecno phone brands are already popular in Nigeria and Kenya thanks to competitive pricing that makes the phones more affordable than their biggest competitors. Actively pursuing new services to offer users could further raise interest and profits.

Transsion Overtook Samsung in Smartphone Sales in Africa

Source: ATLAS

In January, Transsion’s Mobile Internet Centre launched a new service in Nigeria. Scooper is essentially a media platform, offering content on football, literature, politics, technology and a range of other categories.

Apart from Scooper, Transsion’s foray into services with products like Boomplay, a music streaming service similar to Apple Music, Palmcredit, Palmsave, and Palmpay (an Apple pay lookalike) has been mostly through Transsnet, a joint venture with the NetEase Group, a Chinese internet technology company that provides online services.

Boomplay has 29 million users, more than 10 million user downloads on the Google Play store and released its iOS version on the App Store in December 2018. It has also opened offices in three other African countries after its 2015 launch in Nigeria, and signed a licensing deal with Universal Music Group, one of the world’s largest music companies. Users can either stream music on the app for free with ads or subscribe to the premium version that is ad-free. Boomplay is preinstalled on Transsion phones, which could account for its success in user numbers.

Africa’s fintech space is thriving, so it makes sense that Transsion wants in on that sector too. Its Palmpay service allows users to make payments, and send and request money. Palmcredit is one of the many short-term loan services available in Nigeria through a mobile app. Transsion also has Palmsave, a savings app that allows users to automate daily and monthly savings.

While Transsion is leveraging success in a familiar market to venture into services and improve revenue, another motivation to diversify may be to cushion the effects of the decline in mobile phone sales. Global smartphone shipments were down by 6.0% in Q3 2018, and mobile phone shipments in Africa by 2.1%.

Transsion’s services are not just restricted to people who use their phones (itel, Tecno or Infinix), thus accommodating a broader range of users.

This is a strategy that even Apple is embracing, gradually opening up their services to users outside of the iOS. Samsung has announced that they will ship some of their TVs in 2019 with Apple’s iTunes Movies and TV Shows app. Even as Apple’s or Transsion’s phone sales slow down, their services may still thrive.

The success of the Chinese company’s services will keep it relevant in Africa’s tech space, whether or not it loses its leadership of the African phone market. According to Elvis Subor, Marketing Communications Specialist at Transsion, content consumption is the major reason people use their mobile phones and Transsion is looking to plug into this to “optimise the entire mobile internet experience.”

Read this next

Until recently, potential investors had to go to asset management companies, brokerage firms, private portfolio managers or investment firms to complete the very formal process to invest. But a new crop of mobile and web apps are leveraging tech to make investing more accessible through digital ‘retail’ investment platforms–drawing in beginner investors along the way.

More From TC
Without online learning platforms, a few Nigerian universities are using WhatsApp

Physical education has been one of the biggest casualties of the pandemic. AUN, Babcock, Covenant, LASU and Crawford are some universities using WhatsApp, Zoom and Telegram to continue learning for students during this period. On March 19, as the number of coronavirus cases in Nigeria rose to 11, the Federal Government announced the shutdown of […]

odun_eweniyi_techcabal_live

PiggyVest started out with one plan: digitize an offline process of using wooden boxes to save money on a daily, weekly or monthly basis. The idea for the startup came in December 2015. Co-founders Somto Ifezue, Odunayo Eweniyi and Joshua Chibueze were reducing the staff size of PushCV, a still-existing human resources startup they founded, […]

A TechCabal roundup about the impact of the coronavirus pandemic on Africa’s tech industry MAY 31, 2020 This newsletter is a weekly special focused on the effect of the novel coronavirus, COVID-19 on African tech and innovation ecosystems. Subscribe here to get it directly in your inbox every Sunday at 3 pm WAT. Hello, Parents […]


TechCabal is a Big Cabal Media brand



Copyright © 2020
All rights reserved

Privacy & Terms