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COVID-19 Hits Smartphone Market, Record Declines Expected
The COVID-19 pandemic is having a growing impact on the global economy, with the effects of the virus eroding gains in the global smartphone market, according to research firm TrendForce.
The global lockdowns have led to a huge economic bump in almost all sectors.
The smartphone market has also suffered this fate. TrendForce says global production in the first quarter of 2020 (1Q20) fell by 10% year-on-year (YOY) to around 280 million units, the lowest in five years, due to pandemic-induced disruptions across the supply chain.
The firm says disruptions include delayed work resumption and labour/material shortages, which caused low factory capacity utilisation rates.
While it says there are now improvements to the supply chain and work resumption at manufacturing and assembly lines, the pandemic is making its effects felt on the demand side of the smartphone market by tanking major economies worldwide.
“Global production for 2Q20 is now estimated to register another YOY drop of 16.5% to 287 million units, the largest decline on record for a given quarter. TrendForce forecasts total yearly production volume of 1.24 billion units, an 11.3% decrease YOY,” it says.
According to TrendForce, Vivo is the only brand among the top six to show growth in the first quarter of this year.
It says Samsung will experience constrained growth this year even without the emergence of COVID-19. “In addition to the saturation of the market, Chinese brands are exerting continuous pressure on Samsung’s presence in the Southeast Asian and Indian markets by the day.
“Most of Samsung’s smartphone assembly lines are located in Vietnam and India, and the company possesses about only 2% of the market share for smartphones in China. Its production was thus not significantly affected by issues related to the disease during the initial phase of the outbreak in China.
“Nevertheless, the rapid spread of the disease across North America and Europe in the later part of 1Q20 compelled Samsung to lower its device output even as its factories were running as usual.”
TrendForce says Samsung’s production volume for 1Q20 came to 65.3 million units, showing a YOY drop of 9.9%. The firm estimates Samsung’s smartphone production for 2Q20 will fall by 10.7% quarter-on-quarter (QOQ) to 58.3 million units.
Similarly, the research firm says Huawei, which took second place in the production ranking for 1Q20, was able to have its device assembly lines resume work soon after the Lunar New Year holiday.
“This brand has seen a steep decline in overseas sales due to its new devices being excluded from Google Mobile Services. Nevertheless, demand from China, which is its primary market, has started to recover. With the support of domestic demand, Huawei’s smartphone production for 1Q20 came to 46 million units, in line with TrendForce’s earlier projection.”
According to TrendForce, if China’s economy continues to improve, Huawei’s production for 2Q20 may register a QOQ growth and reach approximately 48 million units.
“Huawei is sticking with its plan of making a push for its 5G smartphones this year, but 4G models will still account for most of its 1H20 smartphone output, and Huawei is also holding a significant inventory of 4G models.
“Therefore, Huawei’s greatest challenge at the present is to simultaneously develop an effective campaign to promote the latest 5G smartphones and sell off the existing stock of 4G smartphones,” says the firm.
Corporate Affairs Commission (CAC) has warned Nigerians against transacting with three fake Nigerian firms, citing fraudulent incorporation documents and registration numbers not issued by the commission.
According to the CAC, these companies are using fake certificates of incorporation with two different RC numbers each, none of which exist in the commission’s official records.
The affected companies are SPEF Cooperative Society Ltd with RC Numbers 1265884 and 512862, UPIL Staff Cooperative Society Ltd with RC Numbers 1265837 and 553220, and PREM Staff Cooperative Society Ltd with RC Numbers 1265844 and 545901.
The CAC warns that any Nigerian conducting business with these entities does so at their own risk.
“Anyone that transacts any business with the above-mentioned companies does so at their own risk,” the commission warned.
The commission further advised potential partners and investors to verify registration details directly through its official portal before signing contracts or making payments.
Similarly, the CAC, in a bid to enhance its services, introduced an AI-powered business registration platform on July 3, designed to streamline incorporations.
This new system offers instant name reservations, automated business-name suggestions, and same-day registration using a National Identification Number (NIN).
Additionally, the commission plans to review its service fees starting August 1, aiming to make its services more efficient and cost-effective.
The African Development Bank, in partnership with the International Labour Organization, has launched a transformative system to mainstream youth employment, skills development, and entrepreneurship across its investments.
The approach, called the Youth, Jobs and Skills Marker System, is aligned with the Bank’s latest Ten-Year Strategy, which places Africa’s young people at the center of development efforts to maximize the impact of every dollar invested, turning demographics into a dividend.
The Marker System ensures that Bank projects spanning diverse sectors, such as agriculture, transport, energy, water, and education, systematically incorporate components that enhance youth employability, foster entrepreneurship, and build market-relevant skills.
“The Youth, Jobs and Skills Marker System is about ensuring Africa’s young people have a real say and active role in building sustainable economies and creating jobs – not as passive recipients of youth programs,” said Dr. Beth Dunford, the Bank’s Vice President for Agriculture, Human and Social Development. “This transformation of Bank practices and systems is a step toward making sure our investments have a positive impact on Africa’s young women and men.”
The integrated system has three focus areas:
Youth: Supporting youth-led micro, small, and medium-sized enterprises through targeted investments and operational integration.
Skills: Expanding access to practical, market-driven training and apprenticeships to enhance career prospects.
Jobs: Ensuring Bank-funded projects create sustainable job opportunities, particularly by developing youth skills for employability and the promotion of youth-led businesses in priority value chains.
Each year, around 10 to 12 million young Africans enter the labor market, which offers only three million formal jobs annually. The Bank will prioritize youth entrepreneurship and mobilize private sector partnerships to strengthen industry-oriented skills training as well as job creation over the coming decade.
“[This initiative] is very important because it allows us to significantly contribute to the United Nations Sustainable Development Goal #8 that includes decent work for all,” said Peter van Rooij, Director of Multilateral Partnerships and Development Cooperation at the International Labour Organization. “It also allows the International Labour Organization to influence the Bank’s work, to support their lending that is more geared toward more job creation and better jobs in a sustainable way.”
The Youth, Jobs and Skills Marker System is modeled on the success of the Bank’s Gender Marker System and its online dashboard, which categorize Bank projects based on their contribution to gender equality and women’s empowerment.
Similarly, the new system will feature an online platform enabling Bank staff and consultants to access real-time data for preparing country strategy papers, mid-term reviews, annual reports, project supervision, and reporting on youth-related skills, businesses and jobs outcomes.
The Bank has just launched a pilot version of the Youth, Jobs and Skills Marker System in readiness for the full implementation in 2026. This system will enhance data tracking, improve estimates of youth skills attainment and employment, strengthen labor market information systems, and support policymakers in making evidence-based decisions that drive meaningful change.
The International Labour Organization provided technical support for the system’s development with financial support from the Bank’s Youth Entrepreneurship and Innovation Multi-Donor Trust Fund. The Youth, Jobs and Skills Marker System is the first deliberate action of its kind developed by a development finance institution worldwide.
The Securities and Exchange Commission has revealed plans to commence investigation into the activities of an entity operating under FF Tiffany, allegedly running a fraudulent investment scheme that has defrauded citizens.
A statement by the SEC on Tuesday in Abuja said preliminary information revealed that the scheme, which promised investors unusually high and unrealistic returns, had resulted in the loss of several billions of naira.
The SEC said it viewed the activity as a threat to investor confidence and the overall integrity of the financial system.
The commission assured the public that it was working closely with law enforcement agencies and other relevant bodies to bring everyone involved in the unlawful operation to justice.
According to SEC, those found culpable will be prosecuted in accordance with the Investment and Securities Act and regulatory provisions.
SEC reiterated its earlier warnings to the general public to desist from engaging in Ponzi or unregistered investment schemes that promised guaranteed or exaggerated returns.
“These schemes are not registered with the SEC and do not offer investor protection under the law.
“The commission is currently investigating 79 schemes and will make a statement on its findings at the conclusion of the investigation,” the SEC said.
The commission encouraged investors to conduct due diligence and verify the registration status of any investment firm or product by visiting the SEC website or contacting the commission directly through official channels.
SEC said it remained committed to its mandate of protecting investors, ensuring fair practices, and maintaining confidence in Nigeria’s capital market.
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