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TRANSSION’s Itel Finds Growth in Africa with Low-Cost Phones as Global Market Slumps

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While global smartphone shipments declined by 1% year-on-year in Q2 2025, marking an end to a six-quarter period of growth. The African continent’s market however grew by 7% during the same period. This expansion was largely driven by demand for ultra-low-cost devices, with Chinese manufacturer TRANSSION Holdings and its brand Itel maintaining a dominant position.

According to data from Canalys, global shipments fell slightly, ending a six-quarter growth streak as demand waned in mature markets such as North America and Europe as they experienced a slowdown. Findings suggest that consumers are holding onto devices longer due to economic pressures and a lack of compelling upgrades. In contrast, Africa, has a vastly different mobile landscape, the continent shipped 19.2 million units, with TRANSSION which also owns Tecno and Infinix accounting for 51% of the market.

By Gamuchirai Mapako

Itel’s significant presence in Africa, mostly Zimbabwe is attributed to its focus on affordability, with devices commonly priced under $100. Its success is a direct result of a strategy built for the African reality and this approach removes the primary barrier to entry: affordability. This contrasts with premium brands such as Apple and Samsung who battle over the premium market with devices costing over $1,000, a significant barrier in countries like Zimbabwe where the average population earns $150.

The brand’s products include features tailored to local conditions, including dual SIM capability, extended battery life, and camera software designed to carter for Africans. Such specifications address practical needs related to connectivity, unreliable electricity, and representation.

The growth drivers in Africa extend beyond just hardware. The accelerating adoption of mobile money and digital financial services is a powerful catalyst. For many in rural and peri-urban areas, a smartphone is not a luxury for entertainment but an essential tool for economic participation, enabling access to banking, payments, and remittances. This functional need, combined with relatively cheaper data bundles, ensures demand remains strong as millions continue to transition from basic feature phones to their first smart device.

Further fueling this growth is the rising trend of local manufacturing. TRANSSION has been a key player in this shift, establishing assembly plants in countries like Ethiopia and Egypt. This “Made in Africa” initiative provides significant cost advantages by reducing import tariffs, leveraging regional trade agreements, and creating local jobs. It also allows for a more agile supply chain, ensuring products are tailored and available where they are needed most.

Globally, TRANSSION shipped 24.6 million smartphones last quarter, a slight decrease but enough to keep it among the top five vendors worldwide. Its strategic emphasis remains on high-growth African markets, where many are still transitioning from feature phones to smartphones.

With inflation easing and a large population yet to adopt smartphones, Africa continues to offer substantial growth potential for brands focused on the ultra-low-cost segment.

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