Tecno continues to expand its product lineup. For example, the company recently introduced the Spark Go 2024. With this and similar models, Tecno aims to increase its market share in the smartphone industry, and it’s making significant strides in that direction. According to the latest reports, Tecno’s parent company, Transsion Holdings, had its most successful quarter in Q3 2023, demonstrating impressive financial performance. Here are the details…
How TECNO’s Premiumization & Regional Expansion Catapulted Transsion to Its Best Quarter Ever
According to Counterpoint’s report, in the third quarter of 2023, Tecno’s revenues saw a significant increase of 39% compared to the same period last year, reaching RMB 17.99 billion. The net profit also experienced an impressive growth of 190% YoY, totaling RMB 1.34 billion. This notable success was fueled by an enhanced gross profit margin of 25.2%, attributed to the shift towards higher-priced smartphones and the expansion into more lucrative markets. Tecno, Transsion’s leading brand, played a pivotal role in this outstanding performance, achieving a remarkable 62% YoY increase in smartphone shipments across all regions.
The significant growth in smartphone shipments played a crucial role in Transsion’s overall performance, experiencing a noteworthy 36% increase. Tecno saw a remarkable boost in its global market share, reaching 4% and securing the 9th position among smartphone brands. This achievement becomes even more impressive when considering that Tecno’s market share tripled in just three years.
Tecno’s success can be attributed to a strategic focus on two key areas: premiumization and regional expansion. The company has shifted towards offering higher-value smartphones, with nearly all Tecno devices now featuring 4G or 5G connectivity. The volume of 5G smartphones has witnessed a staggering growth of over 600% year-over-year. Furthermore, sales of Tecno’s premium Camon and Phantom series have increased by 53%, highlighting the brand’s appeal in the high-end segment.
Tecno’s venture into the foldable smartphone market has been a contributing factor to its success. The launch of two foldable smartphones, one at MWC and another in Singapore, has not only enhanced its global image but also demonstrated its ambitious outlook. Notably, the Phantom V Fold, Tecno’s most affordable foldable smartphone, has garnered attention for its impressive display, lack of creases on the inner screen, commendable battery life, and overall performance. These features align with Tecno’s strengths in the lower-priced segments, indicating its potential to compete effectively in the premium market.
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