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COVID-19: Mobile Phone Industry to Lose $51Bn in Revenue

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The coronavirus outbreak caused the worst smartphone market contraction in history, as global demand plummeted in the first and second quarter of the year.

COVID-19: Mobile Phone Industry to Lose $51Bn in Revenue

Although the last few months witnessed a recovery in the number of smartphone shipments, the entire industry is expected to witness substantial revenue losses this year.

According to data presented by Stock Apps, the global mobile phone industry is forecast to lose $51.1bn in revenue by the end of 2020, a 10% drop year-over-year.

The revenues of the global mobile phone industry have been constantly rising over the last years.

In 2016, the entire industry generated $435.7bn in revenue, revealed Statista data.

Over the next twelve months, this figure rose to $462.6bn. By the end of 2019, global smartphone sales revenue surged to $506.2bn, a 16% jump in three years.

However, as half of the world entered a lockdown, demand for new devices has been crushed in the first months of 2020.

The IDC’s Worldwide Quarterly Mobile Phone Tracker data showed smartphone vendors shipped 275.8 million units worldwide between January and March, a 25% plunge compared to December 2019 figures and an 11% drop year-over-year.

The strong downsizing trend continued in the second quarter of the year, with millions of consumers cutting down their budgets and prioritizing spending amid the COVID-19 crisis.

From the consumer standpoint, unless replacing a broken phone, smartphones are mostly a discretionary purchase, which became unnecessary in times of economic uncertainty.

With global demand plummeted, smartphone shipments dropped 16% year-over-year to 278.4 million units between April and June.

Statistics indicate smartphone shipments showed positive movement in the third quarter of the year, with vendors shipping 353.6 million handsets. Still, 4.7 million less compared to the same period a year ago.

Although the industry shows a recovery from the initial impact of the coronavirus, the positive Q3 figures won’t be enough to close the gap noted in the first half of the year.

Statista data indicate the global mobile phone industry revenue is expected to drop to $455.1bn this year, under 2017 levels. However, the following years are set to witness a positive trend, with revenues rising by 21% and reaching $554.4bn by 2023.

With almost 1.8bn cellular subscriptions and $117.8bn in revenue in 2020, China represents the world’s largest mobile phone industry.

However, the Chinese market has also been affected by the coronavirus outbreak, with revenues decreasing by 5.4% year-over-year.

As the second-largest mobile phone industry globally, the United States is expected to generate $57.4bn in revenue in 2020, a 15.7% drop YoY.

Brazil, Japan, and India follow, with $21.4bn, $21.2bn, and $21.1bn in revenue, respectively.

Analyzed by vendors, Samsung represents the market’s largest player with almost 23% market share in the third quarter of the year.

Huawei ranked second with a 15% market share between July and September. Xiaomi follows with a 13.1% share.

The IDC data revealed Apple market share dropped significantly this year, falling from over 20% in the fourth quarter of 2019 to 11.7% in September.


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Secure Identity Alliance: OSIA Becomes Official ITU Standard

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Secure Identity Alliance (SIA) has announced that its OSIA specification, has been recognized as international standard by the International Telecommunication Union’s Telecommunication Standardization Sector (ITU-T).

Secure Identity Alliance: OSIA Becomes Official ITU Standard

This milestone establishes OSIA as official ITU standard (ITU-T Recommendation) for the global infrastructure of information and communication technologies (ICT).

The specification that is now an ITU-T Recommendation is: ITU-T X.1281 – APIs for interoperability of identity management systems.

ITU-T is the standardization arm of ITU, the United Nations specialized agency for ICT.

The Secure Identity Alliance specifications were approved as official ITU-T Recommendations by ITU members including 193 countries and the world’s front-running ICT companies on 1st March 2024.

The new ITU-T Recommendation is under the responsibility of ITU’s standardization expert group for security, ITU-T Study Group 17.

“We are very proud that the OSIA specification is recognized as an international standard by ITU-T. This milestone demonstrates the maturity of OSIA and its potential to foster interoperability and promote fairness in the identity management systems market,” said Debora Comparin, chair of the OSIA Initiative.

Prof. Heung Youl Youm, chairman of ITU-T Study Group 17, said, “The recognition of the OSIA specification as an official ITU-T Recommendation underscores its critical contribution to the advancement of global ICT infrastructure. We are thrilled about the ongoing collaboration between ITU-T SG17 and the SIA, aimed at developing standards for secure identity management.”

“As Editor of the OSIA standard in the ITU-T Study Group 17 Q10, I am pleased to have contributed to this successful recommendation by the ITU,” said Abbie Barbir, rapporteur for ITU-T’s working group on ‘Identity management and telebiometrics architecture and mechanisms’ (Q10/17).

“The collaboration with the SIA continues on OSIA and other structuring initiatives and standards development.”

Engr Abisoye Coker-Odusote, CEO, National Identity Management Commission (NIMC), Nigeria and chair of the OSIA Advisory Committee, said, “As the Chair of the OSIA Advisory Committee, comprised exclusively of government representatives, we take great pride in our five years of collaboration guiding the working group in the development of the OSIA specification. OSIA establishes equal marketplace conditions, fosters collaboration, and ensures product compatibility post-mergers and acquisitions.

The OSIA standardized interfaces drive innovation, enabling new local market models and reducing fraud within multiple ID systems.

Additionally, OSIA addresses integrator/vendor lock-in, allowing governments to maintain control over their identity systems and pursue national development agendas seamlessly.”

 

 

 

 


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Zipline Achieves One Millionth Delivery Milestone

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Zipline, the leading force in drone logistics delivery, has reached a monumental achievement with its one-millionth delivery to customers, signifying a significant leap forward in the logistics delivery sector. This historic milestone was marked by the delivery of two bags of IV fluid from a Zipline distribution center in Ghana to a local health facility.

Renowned for its innovative approach to designing, building, and operating autonomous delivery drones, Zipline’s zero-emission technology has garnered acclaim, covering over 70 million commercial miles across four continents.

Backed by investments surpassing several millions of dollars from notable supporters like Sequoia Capital, a16z, and Google Ventures, Zipline has firmly established itself as a disruptive leader in the industry. CEO Keller Rinaudo emphasizes the company’s commitment to key markets such as healthcare, quick commerce, and food delivery, envisioning a future where Zipline achieves 1 million deliveries per day.

“The three areas where the incentive really makes the most sense today are health care, quick commerce, and food,” underscoring Zipline’s commitment to partnering with top brands and institutions to transform the future of logistics using autonomous drones –  Keller Rinaudo Cliffton.

In Africa, Zipline has made a profound impact, forging significant partnerships across the continent. In Ghana alone, which accounts for about 54% of the one-millionth delivery milestone, Zipline’s collaboration with the government and health ministry has been pivotal. Since its inception, Zipline has completed over 540,000 drone delivery flights across Ghana, encompassing the delivery of crucial supplies, including 3,566,500 units of vaccines, 2,825,210 units of medical products, 14,807 units of blood products, and 18,289 units of animal health products. These deliveries have directly impacted the lives of over 17 million Ghanaians across 13 regions, saving 6,014 lives through emergency deliveries, including blood products and snake antivenom since 2019.

Beyond mere statistics, the company has facilitated the delivery of 12.2 million vaccine doses, including 2.8 million Covid-19 vaccines, leading to a 21% increase in vaccination coverage and a 44% reduction in missed opportunities to vaccinate in Ghana. These efforts have potentially saved 727 lives due to increased vaccination coverage. Additionally, Zipline’s infrastructure expansion in Ghana, with six distribution centers strategically located across the country, has enabled swift and efficient on-demand drone delivery services.

Not only this, the technology has facilitated the vaccination of 104,000 cattle against Anthrax in northern Ghana, safeguarding both human and animal lives. Such interventions have also extended to the agricultural sector, where 10.4 million doses of poultry vaccines have been delivered to poultry farmers nationwide, combating diseases such as Newcastle disease, Fowl pox, and Gumboro.

But Zipline’s impact in Africa extends far beyond Ghana’s borders. Operating in Rwanda, Kenya, Côte D’Ivoire, and Nigeria, the company has become a beacon of hope for healthcare accessibility and disease prevention. In Rwanda, Zipline serves as a lifeline, delivering 75% of the country’s blood supply outside of Kigali, drastically reducing maternal mortality rates due to postpartum hemorrhage by 88%. Additionally, the company’s deliveries of agricultural products have elevated farmers’ fertility rates by 10% compared to the national average.

In Kenya, Zipline’s collaborations with the Elton John AIDS Foundation have facilitated the delivery of HIV/AIDS prevention and treatment products, empowering individuals to manage their health effectively. Similarly, in Nigeria, Zipline’s expansive coverage encompasses over 500 health facilities in Kaduna, more than 350 in Cross River State, and 200 in Bayelsa. Teaming up with Gavi, the Vaccine Alliance, Zipline focuses on reaching children in remote regions, ensuring equitable access to life-saving immunizations.

Zipline’s adaptive approach and tailored delivery services reflect its commitment to meeting the diverse needs of populations and sectors. The achievement of the one millionth delivery milestone underscores its dedication to enhancing healthcare outcomes and addressing societal needs across Africa. As Zipline continues to innovate and expand its reach, it is poised to shape the future of healthcare delivery on the continent and beyond.

 

 

 


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Telcos Record N27Bn Loss from Damaged Fibre Cables

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Repairs and revenue losses from damaged cables are estimated to have cost Nigeria’s telecom industry almost N27bn ($23m) in 2023, according to documents obtained by Bloomberg.

Telcos Record N27Bn Loss from Damaged Fibre Cables

MTN Nigeria, the biggest wireless operator in Africa’s most-populous nation, and Airtel Africa Plc bore the brunt of the costs, the documents show.

MTN suffered more than 6,000 cuts on its fiber cable last year, the documents show.

On Feb. 28, a cut in its network in three different locations by a road construction firm, an oil serving company, and someone burning rubbish in a manhole meant customers faced more than five hours of data and voice outages.

The operator relocated 2,500 kilometers (1,553 miles) of vulnerable fiber cables between 2022 and 2023, at a cost of more than N11bn —enough to build 870 kilometers of new fiber lines in areas without coverage.

Broadband fibre optic cables form the backbone of modern communication infrastructure, enabling the high-speed data transmission that underpins a wide range of personal, business, and societal activities.

On several occasions, the Nigerian Communications Commission (NCC), the industry regulator, has acknowledged this challenge and expressed willingness to work on measures to address it.

These measures include stricter regulations to deter vandalism and improved collaboration between telcos and government agencies responsible for construction activities.

According to the NCC, the telecom sector will make up more than a fifth of the country’s gross domestic product by the end of 2027, up from 13.5 per cent in the third quarter of last year.


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