Transsion to sell internet TVs in Africa

▶ Continent is emerging market heading for consumption upgrade

The biggest mobile phone vendor in Africa, Shenzhen-based Transsion, plans to offer internet TVs called Inflinix in Africa, Chinese financial media outlet Yicai reported on Thursday.

Analysts said it is an inevitable step for the manufacturer, which has a good understanding of the African market, well-established sales channels and strong brand recognition. Further, the move may speed up Chinese companies’ business diversification in the African market.

Transsion has been preparing for its internet TV business ever since 2018, according to people with knowledge of the matter, Yicai reported.

It is notable that Chinese smartphone giant Xiaomi announced on January 19 it will establish an African department. But analysts told the Global Times that whether Xiaomi enters Africa or not, Transsion will promote TV products. It’s inevitable for Chinese smartphone makers to develop other smart appliances or expand their overseas markets, they said.

“Transsion has great market share in terms of mobile phones in Africa, making it hard to achieve further outstanding sales increases in the market. Due to the TV needs in the region, if Transsion can lower the cost of TV assembly in Africa like China’s electronic marketplace Huaqiangbei, there will be great market demand,” Fu Liang told the Global Times on Thursday.

Transsion manufactured traditional TVs called Synix last year, and it cooperated with KTC and TCL in this effort, Yicai reported. Zhang Bing, research director of IHS Markit China Area, told Yicai that TV sales in the Middle East and Africa in 2018 reached 12 million and will grow to 13 million this year.

Transsion did not confirm its TV business move to the Global Times on Thursday.

“The African market is a gift to Chinese technology companies because we’re great at cost controls in manufacturing, which is something foreign companies are not good at,” said Liang Zhenpeng, a Beijing-based independent industry analyst.

Even though the power grid in Africa is not stable, it is an emerging market that’s heading for a consumption revolution. “From the perspective of integration of electronic products, I wouldn’t call Transsion’s behavior a transboundary move, since an internet TV is a player terminal, just like a larger version of a smartphone,” Liang said.

Wang Yanhui, head of the Shanghaibased Mobile China Alliance, agreed, saying that making TVs is much easier than making mobile phones.

“There is the possibility that Transsion can connect its mobile phone products to its internet TVs once internetrelated applications become pervasive in Africa with stable internet access,” Wang said.