Jan. 07, 2025
Sumitomo Corporation

Investment in Zension Technologies, Inc., a Company Expanding Smartphone Subscription Services in the Middle East

Sumitomo Corporation (Head Office: Chiyoda-ku, Tokyo; Representative Director, President and Chief Executive Officer: Shingo Ueno) has invested in Zension Technologies Inc. (hereinafter "Zension"), a company expanding smartphone subscription (*1) services in the Middle East. As a result of the investment, Zension has become an equity method affiliate of Sumitomo Corporation.

Sumitomo Corporation's Business Development for Telecommunications Carriers

Sumitomo Corporation has some 30 years’ experience in the integrated telecommunications business. In Japan, we developed a mobile phone distribution business, including mobile phone sales, value-added services and the resale of used devices. Overseas, Sumitomo Corporation has developed mobile communications services in different countries across the globe, including Mongolia and Ethiopia.

Leveraging this experience, Sumitomo Corporation promotes telecom carrier growth by providing value that meets carriers’ needs. Our mobile phone distribution business contributes to the acquisition of new customers and retention of existing ones, making it essential to telecommunications business development. Sumitomo Corporation will continue to promote business development in regions including the Middle East, Asia and Europe.

Why Sumitomo Corporation Invested in Zension

Demand for smartphone subscription services, warranty services and the sale of used devices is growing steadily worldwide against a backdrop of rising smartphone prices and increased smartphone use in emerging markets.

The Gulf Cooperation Council (GCC) countries of the Middle East, including Saudi Arabia, UAE, Bahrain, Kuwait, Oman and Qatar, have high proportions of young people, with continued growth expected. GDP per capita is approximately $41,000 – higher than Japan – making it a market with strong purchasing power. Compared to many other countries, smartphone replacement cycles are short, averaging just 1.5 years, resulting in strong demand for replacement devices. For these reasons, smartphone sales are expected to continue growing.

Zension is involved in a wide range of device distribution businesses, including smartphone subscriptions, warranty services and used handset sales through telecom carriers and retailers in Saudi Arabia and the United Arab Emirates (UAE). Zension is a dominant player in Saudi Arabia, where it has partnered with the country’s largest smartphone sales company and holds top market share in warranty services.

Zension's Business Model

Through our investment in Zension, Sumitomo Corporation will leverage expertise in used device resale accumulated through our mobile phone sales business, as well as strong strategic partnerships with telecom carriers in many different countries. By expanding Zension’s sales channels, Sumitomo Corporation aims to promote Zension’s subscription services, which are expected to see significant demand in the coming years. Also, Sumitomo Corporation contributes to the circular economy of smartphones by reselling devices, thereby enhancing access to the digital world for people around the world.

(*1) This is a new service where, instead of purchasing a smartphone, consumers pay a fixed monthly fee to use it for any desired period. This allows consumers to use the latest smartphones with a minimal monthly cost.

Zension Overview

Company Name : Zension Technologies Inc.
Established : 2016
Business Overview : Smartphone subscription, warranty services, trade-ins and used device sales, and more.
Countries of operation : Saudi Arabia, UAE

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