Company Trend Analysis - Tecno's Pricing Good, But More Diversification Needed - MAY 2017


BMI View: Tecno ' s sub- USD50 smartphone will further reduce cost barrie rs to overall device ownership in SSA . We expect Nigeria to be Tecno ' s largest addressable market . However, increasing the traction of its smartphones portfolio will require Tecno to increasingly diversify its product offering.

Tecno has launched its Camon CX range of smartphones, of which the entry level version is priced below USD50. The handset will be available in 41 markets across Africa, the Middle East and Latin America.

In 2017, we forecast the average selling price (ASP) of smartphones in key SSA markets such as Nigeria, Ghana and Kenya to be considerably above Tecno's USD50 price tag; the vendor's pricing strategy will therefore help it gain traction in other addressable markets within the sub-region. We believe Nigeria will be Tecno's largest addressable market based on its more established market presence there and the prospect of relatively faster growth in smartphone sales volumes over the next five years.

Pricing And Product Differentiation Strategy Will Drive The Take-up Of Camon.
Average Selling Price Of Smartphones (USD), 2017
f = BMI forecast. Source: BMI.

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