TCL’s Branded Smartphones Starting to Get Traction in the US
Most Western consumers likely assume that TCL is a small Chinese startup that makes TVs and is now getting into smartphones. TCL is based in China, but the rest of the assumptions are wrong. TCL is a 39-year-old vertically-integrated consumer electronics behemoth. It generates over $10 billion in revenue a year, it is the #2 TV OEM globally, and it owns its own display fabs. In China, TCL’s product line stretches from 8K televisions to washing machines. In the US and Europe it is best known for high-value televisions. However, TCL has been selling phones since 2004; it just never used its own brand. TCL builds Alcatel phones and tablets, owns the Palm brand, and licensed BlackBerry for two years.
Having established the TCL brand in televisions in the value space – never the least expensive, but offering good features at relatively low prices – the company is starting to use its brand on smartphones and tablets with similar attributes.
TCL announced the 10 series back at CES and started shipping the $250 TCL 10L and $450 TCL 10 Pro mid-year. The TCL 10L is a solid value for its $250 price. The TCL 10 Pro has design cues of a much more expensive phone, but it has been overshadowed by a slew of phones entering the mid-tier category with better cameras or high refresh rate displays. While the competition is certainly an issue, TCL’s main problem with the first two 10’s is distribution. TCL has been selling the 10 line unlocked, but carrier partnerships are the most lucrative channel in the U.S. TCL does have relationships with all the national carriers: TCL isn't at AT&T, but has several Alcatel branded phones at AT&T's Cricket prepaid brand. TCL isn’t at T-Mobile, either, but the Alcatel GO Flip 3 is the carrier’s only flip phone (which drives significant volumes, if not prestige). TCL is also the ODM for T-Mobile’s $400 REVVL 5G, which is basically a Magenta 10 with sub-6 5G. It is the least expensive 5G phone at the carrier.
The $400 TCL 10 5G UW accomplishes two things for TCL: it adds 5G with mmWave support to the high-value 10 series, and it is the first TCL phone to get U.S. carrier retail distribution under its own brand. Like the REVVL 5G at T-Mobile, the TCL 10 5G UW is the least expensive 5G phone at Verizon. To help it make a good impression with press and analysts, TCL distributed samples in an attractive reviewer’s kit – a first for the company, and a luxury typically afforded to flagship phones, not mid-tier models.
The TCL 10 5G UW has a large and colorful 6.53” display, a huge 4500 mAh battery, and an extremely generous 128GB storage with microSD slot for further expansion. (Apple’s iPhone SE is also $400, but costs an additional $50 to upgrade to the 128GB model.) TCL is on trend giving the 10 5G UW multiple cameras: the 48 MP main cameras takes acceptable photos in good lighting, and splotchy photos in low lighting or when zoomed. There is also an 8 MP wide angle and a 5 MP macro on back and a 16 MP selfie camera punched out of the front display. A tiny, but fast, fingerprint reader is on the rear, and an increasingly rare 3.5mm headphone jack can be found up top. TCL includes a 9V2A fast charger in the box, but consumers will have to supply their own headphones. (Verizon does not carry them, but TCL’s $15 SOCL headphones are excellent.)
While the specs are good, the standout features are the price, a beautiful refracting finish on the rear, and 5G with mmWave. TCL's 10 5G UW is a full $150 less expensive than the closest 5G competition at Verizon (the Moto One 5G UW and Samsung Galaxy A51 5G UW). If you don't want 5G, then $379 Google's Pixel 4a offers a better camera, and Samsung's $399 Galaxy A51 has a punchier Super AMOLED display. Nobody actually needs mmWave 5G on a $400 phone today, and Verizon’s 4G LTE network is often faster than its low-band 5G network in my area. But Verizon is doing a good job pushing its 5G marketing message, and TCL's brand is rising thanks to TVs that offer tremendous value. Lots of families buy phones in bunches, can't afford multiple premium phones, and will get a hard sales pitch from Verizon on 5G. The TCL 10 5G UW fits that bill perfectly. All TCL needs is to get Verizon retail salespeople to support it, and for the pandemic to ease up enough for consumers to go to Verizon retail stores and see the phone for themselves.
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