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IDC Blames Macroeconomic Conditions for Downturn in Africa’s Mobile Phone Market

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Africa’s mobile phone market started 2017 off with a drastic quarter-on-quarter (QoQ) decline according to the latest figures announced today by International Data Corporation (IDC).

The global technology research and consulting firm’s newly released Quarterly Mobile Phone Tracker shows that overall shipments for the first quarter of the year in Africa totaled 54.5 million units, down -8.2% on Q4 2016.

IDC states that this was primarily due to a stark -17.6% decline in the smartphone segment, with shipments falling from 25.8 million units in Q4 2016 to 21.2 million units in Q1 2017.

“When viewed year-on-year (YoY), the overall mobile market was up 8.4%, primarily due to feature phone shipments growing from 26.6 million units in Q1 2016 to 33.3 million units in Q1 2017,” the company adds.

The IDC says that feature phones have now been rising as a proportion of the total market for more than a year, which highlights the continuing importance of basic mobile communications in many parts of Africa, particularly in rural areas.

The drop in smartphone shipments in Q1 2017 was caused by substantial QoQ declines in the continent’s three largest smartphone markets – South Africa (-13.6%), Nigeria (-8.1%), and Egypt (-11.5%).

“In South Africa, the drop was mainly due to high levels of stock in the channel from previous quarters,” says Nabila Popal, a senior research manager at IDC. “Nigeria’s decline was caused by the ongoing recession in the overall economy as well as difficulties in accessing foreign currencies for imports, while continuing exchange-rate difficulties were also behind the major decline seen in Egypt.”

The smartphone markets in Morocco and Algeria also performed poorly in Q1 2017, although the QoQ declines were much less drastic at -2.2% and -1.5%, respectively.

“Morocco’s economy was significantly impacted by a stalemate in the government that is delaying the disbursement of budgetary funds, while Algeria’s unstable politics continue to dampen consumers’ willingness to make discretionary purchases,” says Soufiane Bouhaji, a research analyst at IDC. “Tunisia was the only market in North Africa to record a QoQ increase in smartphone shipments (0.5%) in Q1 2017 and that was mainly due to the country’s healthier macroeconomic environment.”

The East African markets performed stronger than any other region in Africa in terms of smartphone shipments for Q1 2017, with Tanzania and Uganda seeing substantial QoQ increases of 8.1% and 11.6%, respectively.

The Kenyan market, which has seen big gains in smartphone shipments over the last two years, was more subdued in Q1 2017, with shipments declining slightly by -1.3 % QoQ.

In terms of vendor rankings, Samsung remains the continent’s leading smartphone vendor, with 29.8% share in Q1 2017, up on the previous two quarters but slightly down on Q1 2016.

Its big rival in Africa, the China-based Transsion group, took second place with 23.9% share of the smartphone market, thanks to its diversified portfolio of mid-range phones and strong focus on the ˂$150 price segment.

In the feature phone space however, it is Transsion that dominates not Samsung, with its Tecno and itel brands accounting for three out of every five feature phones shipped across the continent in Q1 2017.

“IDC expects Africa’s overall smartphone market to slowly rebound from its current lull to a state of growth,” says Bouhaji. “Despite the tough macroeconomic conditions currently inhibiting much of the region, smartphone prices continue to fall and this will drive their adoption across Africa. Almost 40% of all smartphones shipped in Africa in Q1 2017 were priced below $80, up from 28% just two years earlier. Mobile data charges are also becoming more affordable, while increasing use of video-sharing applications and improving penetration of over-the-top services are further encouraging smartphone adoption.”

IDC is forecasting that Africa’s smartphone shipments will remain flat this year, but for growth to resume in 2018 as the economy gradually recovers.

Nigeria CommunicationsWeek believes that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. So since 2007, we have devoted our energy to independent reportage of technology and how they affect lives.

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E-Business

Visa Launches ID Intelligence for Smarter Customer Authentication

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Visa has launched Visa ID Intelligence, a platform that lets issuers, acquirers and merchants quickly adopt emerging authentication technologies, according to a press release.

Available through Visa Developer Platform, Visa ID Intelligence offers a curated selection of third-party authentication technologies that feature simple integration with Visa APIs and SDKs. This allows clients to create, test and adopt new authentication solutions.

This ultimately helps financial institutions and merchants to adopt effective and secure solutions and accelerate time-to-market with streamlined on boarding and implementation through Visa as a single trusted source, the company said.

Visa ID Intelligence features include: Identity Documents— the platform evaluates identification documents and matches selfies to photo IDs, while extracting document information and converting it into digital form.

Uses include creating new accounts, and performing password reset and lost or stolen card replacement.

-Biometrics — Visa ID Intelligence allows clients to use eye, face, fingerprint and voice to meet consumer needs for convenience, security and speed in authentication.

Uses include app login, payments, step-up authentication, and more.

“Traditional methods for authenticating a customer can create frustration or are simply not designed for the new ways people are shopping and paying. We built Visa ID Intelligence to help accelerate smarter and easy-to-use authentication solutions for any commerce environment — to better protect against fraud and to move closer to a world without passwords,” Mark Nelson, Visa senior vice president of risk and authentication products, said in the release.

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ESET Works With Google To Protect Chrome Against Dangerous Malware

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By peter oluka

ESET, a leading global cybersecurity company, on Thursday launches Chrome Cleanup, a new scanner and cleaner for Google Chrome designed to help users browse the web safely and without interruption.

Chrome Cleanup will be available for all Google Chrome users running on Windows.

As cyber-attacks become more complex and difficult to spot, browsing the web can lead users to dangerous sites which can install malicious software onto devices.

Chrome Cleanup will alert Google Chrome users to potential threats when it detects unwanted software.

Google Chrome will then give users the option to remove the software. Chrome Cleanup operates in the background, without visibility or interruptions to the user. It deletes the software and notifies the user once the cleanup has been successfully completed.

“Using the internet should always be a smooth and safe experience for everyone,” said Juraj Malcho, chief technology officer at ESET. “For three decades, ESET has developed a number of security solutions that allow users to safely enjoy their technology and to mitigate a variety of cyber threats. Chrome Cleanup addresses unwanted software that can negatively influence a users’ experience on the internet.”

Chrome Cleanup is included in the latest version of Google Chrome. For more information about these tools, read Google’s blog post, here.

For 30 years, ESET® has been developing industry-leading IT security software and services for businesses and consumers worldwide.

With solutions ranging from endpoint and mobile security, to encryption and two-factor authentication, ESET’s high-performing, easy-to-use products give consumers and businesses the peace of mind to enjoy the full potential of their technology.

ESET unobtrusively protects and monitors 24/7, updating defenses in real-time to keep users safe and businesses running without interruption. Evolving threats require an evolving IT security company.

Backed by R&D centers worldwide, ESET becomes the first IT security company to earn 100 Virus Bulletin VB100awards, identifying every single “in-the-wild” malware without interruption since 2003.

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A Buyer’s Market in the Global Economics of DDoS Attacks

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It’s a buyer’s market in the local property arena at the moment, according to certain industry experts.

 

This is largely as a result of the slower economy, which has seen a rise in the number of properties for sale.

 

But did you know that globally, it’s a buyer’s market as well when we look at the economics of Distributed Denial of Service (DDoS) attacks? The second, of course, is an underground market, largely regarded as a criminal one.

 

So said Bryan Hamman, Arbor Network’s territory manager for Sub-Saharan Africa.

 

Referring to recently released information from Arbor Networks, he said, “It is interesting to analyse the current economics in global DDoS attacks, which are attempts to make an online service unavailable by overwhelming it with traffic from multiple sources. Most people who are aware of DDoS attacks understand that there will be a perpetrator and a target.

 

“However, we’re now seeing a growing number of third-party providers of DDoS attacks as a service, who advertise their abilities online in order to either sell would-be attackers access to the tools needed to conduct a DDoS attack, or who perform the attack themselves on the customer’s behalf and provide reports afterwards.”

 

Hamman noted  that the fees of these underworld providers are lessening, due to rapidly expanding competition and the supply of readily available attack resources such as botnets. As a result, he says, the DDoS business is currently a buyer’s market.

 

Arbor reported that the prices for attack services, sometimes called “stressers” or “booters” vary widely, as do estimates of the total cost of an attack to the victim. But the economics are simple: DDoS attacks are becoming cheaper than ever for the perpetrator; are extremely lucrative for the attack service provider, and potentially financially devastating for the target.

 

Arbor noted that an increasing number of operators resemble legitimate service provider infrastructures with significant computing power, typically running their own botnet armies to unleash DDoS attacks. Perpetrators can essentially rent the providers’ botnets by the hour, day or week, or in some cases can buy a specific number of bots outright. The mechanics of transactions follow a classic web service model, meaning the perpetrator and the provider need never come in contact.

 

Providers that conduct attacks-as-a-service even post their services online, with tiered pricing reflecting the different types of attack that they offer. Prices are based on several factors. They can include the duration of the attack, the perceived value of the target, the country in which the attack takes place and/or the different methodologies employed.

 

In Arbor Networks 12th annual Worldwide Infrastructure Security Report, 59 percent of respondents estimated their downtime costs as being more than USD500/ minute in lost revenue (some ZAR6,700 per minute with the rand/dollar exchange rate on around ZAR13.50 to the dollar), with some indicating even higher losses. This also does not factor in the costs of repairing the damage, potential legal costs of settling with customers denied service, or reputational damage to the company’s brand.

 

Hamman concluded, “Here in South Africa, we may not yet face the overtness of DDoS operators advertising their services, as can be seen in the US. However, this does not mean that local companies shouldn’t be vigilant against DDoS attacks – protection is more vital than ever. A hybrid solution that combines on-premises and cloud-based protection is the industry best practice in DDoS defence. When you accept that DDoS attacks aren’t going away, and in fact are projected to escalate, it makes the best economic sense of all to make sure that you are adequately prepared against a DDoS attack.”

 

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