# Transsion

Memory Crunch Halves Profits at 'King of African Phones' — A Warning for Low‑cost OEMs

Transsion’s 2025 net profit fell by 53.4% as rising memory‑chip prices and heavier sales and R&D spending squeezed margins. The company’s heavy reliance on low‑end handsets in price‑sensitive African and South Asian markets limits its ability to pass on cost increases, forcing a strategic pivot toward diversification and a Hong Kong IPO amid potential shareholder selling risks.