Quick Take: Tecno Mobile Is Launching Phones That Don’t Work in the US to Sell Them in Africa
Transsion brands' Tecno Mobile is based in China and sells phones primarily in developing markets. It is the leading smartphone vendor in Africa and is making inroads in India and South America. Tecno Mobile recently launched its flagship Camon 19 and Camon 19 Pro smartphones in New York, and followed that up with a special edition in Boston at the Boston Museum of Fine Arts. On its own this is not unusual: going back to Nokia’s N series, phone manufacturers have long used media-friendly New York City to launch phones for global markets, however, it is not normal to launch phones that literally will not connect to cellular networks in the city where it is being announced. This disconnect highlights both the difference between various geographic markets and some commonalities across all consumers regardless of location and purchasing power.
In some markets, Apple or Samsung flagships are simply priced out of reach of all but a sliver of the population, but consumers everywhere still fall into similar budget, mainstream, and flagship segments – just at lower price points. Just like in San Francisco or Seoul where the top segment of customers spend $1,200+ for a flagship phone, the relatively wealthy consumers in Nairobi who can afford a $250 flagship phone for that market care about imaging, specs, and brand image within their budget. Tecno Mobile’s marketing focuses on image stabilization and capturing accurate dark skin tones, and the company keeps prices down by not including band support for U.S. carriers. This is not a limitation of the MediaTek Helio G96 chipset being used, but about saving the money that would need to be spent tuning and certifying the phones for markets where it will not be sold.
This is a rational decision: carrier certification can cost $1 million USD per device, and that expense is only worth undertaking if the phone can be successful in this market. Tecno mobile would need to change the chipset to a 5G-capable MediaTek Dimensity and obtain carrier distribution for the Camon 19 Pro to have a shot at selling in the U.S. at that price point, and even then it would still be passed over for better known brands like Motorola. However, Tecno Mobile also knows that its emerging market flagship customers' brand aspirations lean towards the U.S. Launching phones in New York and Boston burnish its image and make its phones appear more cosmopolitan and appealing even if its customers are unlikely to ever visit these cities (and if they do come, they’ll need a different phone to connect to a network).
The Tecno Mobile Camon 19 Pro is fairly standard 4G phone, but the Mondrian Edition their PR folks sent over is something special: the back panel uses polychromatic photoisomer technology to add color in sunlight (Piet Mondrian -style), and back to white again indoors. It happens fast and feels magical. The phone itself is being sold in India (and possibly other markets). For the Boston Museum of Fine Arts launch Tecno Mobile packaged the phone with matching earbuds, cufflinks, and handkerchief – it’s an impressive package.
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