News
Samsung Faces Multi-Front Battle In Global Smartphone Shipment
With increased pressure in the high-end from Apple, and at the low-end to midrange from Chinese manufacturers Xiaomi, Huawei, ZTE, and others, Samsung faces a multi-front battle.
Apparently, holiday seasonality, strong end-user demand, and a deep selection of models propelled smartphone volumes to a new record level for the quarter and for the year.
According to preliminary data from the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker, smartphone vendors shipped a total of 375.2 million units during the fourth quarter of 2014 (4Q14), resulting in 28.2% growth when compared to the 292.7 million units shipped in 4Q13 and 11.9% sequential growth above the 335.3 million units shipped in 3Q14.
For the full year, the worldwide smartphone market saw a total of 1,301.1 million units shipped, up 27.6% from the 1,019.4 million units shipped in 2013.
Having spent 11 quarters prior to 4Q14 as the number two smartphone vendor in terms of shipments, Apple managed to close the gap to a near tie with Samsung in 4Q14. Led by the success of its newer, larger iPhone 6/6+ models, Apple reduced the volume gap to just 600,000 units in the fourth quarter.
Despite being far more profitable for quite some time, Apple’s shipment volumes trailed Samsung’s by more than 33 million units during the same quarter a year ago. Continued success from Apple, coupled with the ongoing challenges facing Samsung, could enable Apple to overtake Samsung during the 2015 calendar year.
Samsung’s challenges have not only come from Apple, but also from the increasing number of low-cost Android OEMs that are putting out products at much lower margins.
In order for Samsung to regain its share at the top, it will either have to accept lower margins from here forward or revamp its high-end strategy to compete with Apple.
“Most of the industry expected an extremely strong holiday quarter from Apple, especially with regards to the iPhone. However, worldwide shipments of 74.5 million units beat everyone’s expectations,” said Ryan Reith, Program Director with IDC’s Worldwide Quarterly Mobile Phone Tracker.
Reith also said that beyond the record-setting quarter, a few impressive things stand out with regard to Apple.
First, at a time when average selling prices (ASPs) for smartphone are rapidly declining, Apple managed to increase its reported ASPs in the fourth quarter due to higher-cost new models.
“Second, the growth of iPhone sales in both the U.S., which is considered a saturated market, and China, which presents the dual challenges of strong local competitors and serious price sensitivity, were remarkable. Sustaining this growth and higher ASPs a year from now could prove challenging, but right now there is no question that Apple is leading the way.”
In 2013 IDC talked about the smartphone industry topping the 1 billion unit milestone, and while year-over-year growth did slow from 40.5% in 2013 to 27.6% in 2014, the market clearly still has legs.
This past year volumes surpassed 1.3 billion units and the vendor scenario has witnessed continued shakeups.
Growth is forecast to decline to the mid-teens in 2015, but opportunity exists as much of the world’s population is either not a wireless subscriber or has yet to move to a smartphone.
“That the worldwide smartphone market grew by 27.6% in 2014 is noteworthy, but it also represents a significant slowdown compared to 2013,” said Ramon Llamas, Research Manager with IDC’s Mobile Phone team. “Mature markets have become increasingly dependent on replacement purchases rather than first-time buyers, which has contributed to slower growth. In emerging markets, first-time buyers continue to provide a lot of market momentum, but the focus has shifted toward low-cost devices, creating a different dynamic for both global and local vendors.
“What remains to be seen is how the vendors beyond Samsung and Apple will assert themselves,” added Llamas. “With Lenovo acquiring Motorola, and Xiaomi having greater aspirations beyond China, the competitive pressure will come more from below and less from above. This will make the smartphone race continuously competitive as 2015 shapes up.”
Smartphone Vendor Highlights:
Samsung remained the leader in the worldwide smartphone market for the quarter and for the year, but nonetheless experienced continued competitive realities.
IDC maintained that with increased pressure in the high-end from Apple, and at the low-end to midrange from Chinese manufacturers Xiaomi, Huawei, ZTE, and others, Samsung faces a multi-front battle.
To this end, Samsung has streamlined its operations and product portfolio to become more competitive in the market.
Apple reached a new quarterly shipment record in 4Q14 and fell just short of surpassing Samsung for overall leadership in the smartphone market.
An elevated consumer appetite for big-screen devices, as well as Apple’s push into China and other countries, saw iPhone sales up 44% in the U.S. and up 97% in the BRIC countries (Brazil, Russia, India, China). Sales doubled year-over-year in China, Brazil, and Singapore. What remains to be seen is how long Apple can sustain this runaway growth.
Lenovo was a distant third in the fourth quarter, narrowly edging out Huawei thanks to the completion of the Motorola acquisition earlier in the quarter. Lenovo continued to dominate the sub-$150 handset market in China with a vast portfolio of devices including the popular Golden Warriors S8 and more expensive flagship Vibe Z2 pro. Lenovo has recently announced that it will bring the Motorola brand back to China in 2015, starting with the Moto X next month.
Huawei returned to the list of top 5 worldwide vendors, emphasizing its midrange and high-end smartphones (P Series and Mate Series respectively), and saw continued success with its Honor line.
Huawei attributed its 2014 success to improved brand awareness and overall customer experience, which it will look to evolve even further in 2015.
Xiaomi fell from the third position to fifth in 4Q14, beating out LG for the final spot among the top 5.
Even though volumes declined slightly from 3Q14 levels, Xiaomi posted the largest year-over-year growth of all the leading vendors, thanks to a solid demand within its home country of China and a steady release of new devices, including the Mi4 LTE.
Xiaomi’s grip on the number 5 spot is tenuous at best, with LG and ZTE following close behind.
News
Standard Chartered, BII Renew $350 million Commitment to Support Trade Finance in Emerging Markets
Standard Chartered, a leading international cross-border bank, and British International Investment (BII), the UK’s development finance institution (DFI) and impact investor, announce the signing of a USD350 million risk participation agreement. This facility aims to bolster the trade finance needs of SMEs and corporates across Africa and South Asia and to boost economic growth in these regions.
Since the initial agreement in 2013, Standard Chartered and British International Investment have enabled over USD10 billion in trade volumes in over 10 countries across Africa and South Asia including Kenya, Tanzania, Nigeria, Bangladesh, Pakistan and Nepal. In the past year, approximately USD450 million of trade has been supported via this facility.
The renewed facility will cover an expanded number of dynamic markets and seek to provide much needed support in trade and economic growth in Africa and South Asia by further enabling trade finance access and liquidity across Standard Chartered’s extensive global network. It will support many sectors such as food, agriculture, healthcare, industrials, metals infrastructure, electrical, electronics, technology, telecom and mobility to name a few.
The facility also supports the United Nations’ Sustainable Development Goals of Decent Work & Economic Growth (UN SDG 8), Industry Innovation & infrastructure (UN SDG 9), Responsible Consumption & Production (UN SDG 12).
The UK’s Development Minister Anneliese Dodds said: “I am delighted to see BII and Standard Chartered renew their facility to deliver trade finance throughout Africa and South Asia. This is an important partnership that will support SMEs and corporates to grow and deliver critical goods and services.
“Trade plays an important role in economic transformation, and this risk-sharing facility demonstrates how BII can work with financial institutions to support our shared development objectives.”
Nick O’Donohoe, CEO, BII, said: “We are proud of the positive impact that this long-standing trade finance facility with Standard Chartered has had in Africa and South Asia. By enabling over $10bn in trade volumes, the facility continues to empower businesses and facilitate the vital flow of essential goods and services including food and healthcare.
This is pivotal in supporting economic growth and creating new opportunities in these regions. It is also a step closer to narrowing the global trade finance gap.”
Saif Malik, CEO, UK and Head of Banking & Coverage, UK, Standard Chartered said: “We are thrilled to renew our commitment to work with BII in support of trade. As a leading international banking group, we play a vital role in enhancing access to the capital and liquidity that is essential for global trade.
This strategic agreement will provide significant support to businesses with high potential but constrained access to finance. It aligns to our vision of the role that banking and finance can play in supporting the growth ambitions of corporations that innovate for the future by connecting the world’s most dynamic markets in trade, investment and capital flows.
Standards Organisation of Nigeria (SON) has warned the public against the use of substandard and uncertified Compressed Natural Gas (CNG) cylinders.
The warning is coming in the wake of the unfortunate recent incident of CNG cylinder explosion at the NIPCO CNG Refueling Station in Benin City, Edo State.
In a statement, the organisation said it has put robust and effective regulatory measures in place to ensure that all CNG equipment and conversion kits conform to approved standards before being certified for public use.
“The conformity assessment schemes are designed to prevent the import, manufacturing, and use of substandard products,” it stated.
In addition, SON said it is collaborating with the Presidential Initiatives on CNG and other relevant government bodies to finalise the Nigerian Gas Vehicle Monitoring System (NGVMS) – a platform that will provide centralized monitoring and surveillance of CNG systems to ensure that only vehicles equipped with certified conversion kits can access gas at retail outlets.
“The NGVMS will also offer a database of approved CNG equipment and suppliers which will go a long way in preventing the substandard installations and further mitigating the associated risks.”
Access Bank PLC has been named the 2024 Best Digital Award Winner in the Commercial Banks Category at the Digital Jurist Awards, organized by Phillips Consulting (pcl.).
In addition to this top honour, the Bank also secured the Best Website Award, achieving an impressive score of 201 points for its engaging and user-friendly digital experience. Access Bank’s cumulative score of 380 points reflects its excellence across digital touchpoints, including its website, web portal, mobile app, and social media.
Commenting on the recognition, Amaechi Okobi, Chief Communications Officer of Access Holdings PLC, said, “We are honoured to receive the Best Digital and Best Website Awards at this year’s Digital Jurist Awards. At Access, our focus on digital innovation is driven by our commitment to deliver seamless, secure, and customer-centric solutions across all touchpoints.
This recognition validates our ongoing efforts to enhance our digital platforms, making financial services more accessible and efficient for our customers. We thank Phillips Consulting for recognising our efforts and will continue to raise the bar in digital excellence.”
Phillips Consulting has long served as a development partner to Nigerian financial institutions and other organisations with an online presence. Leveraging its proprietary Digital Jurist platform, the firm has conducted assessments of digital touchpoints in various sectors, from financial services and insurance to telecommunications and government agencies, over the past 17 years.
Originally established as Web Jurist®, the platform was reimagined as Digital Jurist to assess new and diversified digital channels in the evolving digital economy. Digital Jurist’s evaluation framework examines a range of factors, including user experience, accessibility, performance, functionality, security, customer service, support, marketing, and content engagement across digital platforms.
These awards reinforce Access Bank’s leadership in digital banking, adding to recent accolades including 2024 Best Digital Bank and Best Mobile Banking App by World Finance, Best Mobile Banking App and Best Digital Bank by The Digital Banker Awards, and Best Digital Banking Initiative at the Global Retail Banking Innovation Awards 2024.
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