Transsion Holding has been hit with a lawsuit from Huawei. The case was filed to the Shenzhen Intermediate People’s Court, which they accepted on September 23rd.
Transsion Holding is a smartphone company, which is headquartered in Shenzhen, China. The company is more famous in Africa where they control about 48.71% of the market share in that region. They operate under the Tecno, Infinix and Itel brand.
According to the lawsuit, Huawei sued the company for infringement disputes and copyright ownership. Report from an unknown source says the infringement suit is not conspicuous. Many believe it’s not a coincidence the lawsuit was reported a day before Transsion listing on Shanghai’s Star Market.
Despite the lawsuit, the shares of Transsion raised by 67.51% on its first day of trading. So far, the company has realised almost $4 billion.
According to Transsion’s IPO document, the company has obtained 630 patents from the State Intellectual Property Office in China. This is relatively small compared to other big Chinese smartphone companies. Vivo has over 10,000 patents, Oppo with 38,000 patents and even Huawei has 100,000 patents.
Patents are considered to be more significant and important than products when it comes to the international markets. One of the key success for Transsion in Africa is due to the region depending on outdated technology. For example, some parts in Africa still makes use of the outdated and forgotten 2G network.
However, Africa is now one of the fastest-growing continents in terms of technology. The use of 4G is now spreading like wildfire and many network providers are already working towards the 5G connectivity. The next couple of years will crucial for Transsion Holding, as they have to adjust if they plan on retaining their 48.71% market share in Africa.