File photo/ Tan Yuhan (NBD)

For years, Chinese brand Transsion has been a dominant player in the African mobile phone market, with its products appearing in nearly every other handset sold in places like Nigeria, Ghana, and Ethiopia.

However, the company's future in the region now appears uncertain.

At the end of 2022, Transsion reported a decline in both revenue and profits, and its stock price on the secondary market has been in decline.

There are a few reasons for this. Firstly, the company is facing increasing competition from other brands. Secondly, with the economic development of Africa, the demand for low-end phones, priced below $200, is decreasing, while mid- and high-end phones priced above $200 are slowly gaining traction.

In response, Transsion has been expanding into other markets, including India, Bangladesh, and Pakistan.

However, in these markets, the company's gross profit margin was only 15.02% in 2021, showing that despite its success in Africa, the company may have difficulty replicating it elsewhere.