E-Business
Nigerians Groan as Corporates, Educational Institutions Suffer Global Computer Scarcity
After enjoying a run of uninterrupted supply of personal computers (PCs), laptops and other digital devices for nearly a quarter of a century, the world is currently in the middle of a major supply chain crisis that has seen global manufacturers struggle to meet growing demand.
The situation is exacerbated by the coronavirus pandemic, a global health challenge that began in late 2019, spreading from Wuhan, China where it originated to virtually all corners of the globe.
With the onset of the pandemic, supply of laptops, PCs and other hardware components had taken a huge bashing.
Global data released two weeks ago shows that most major global computer OEMs are unable to supply five per cent of orders placed and paid for by distributors and this has skyrocketed retail prices of PCs and laptops.
In Africa, and particularly in Nigeria, consumers are paying higher prices to secure few available units in the market. It is speculated that things may not improve until mid-next year.
This is hardly surprising as China, the original epicenter of the pandemic, had for a while now, become the world’s leading manufacturing hub.
Consequently, the lockdowns occasioned by the pandemic had seen a breakdown of China-based global computer supply chains, delaying the arrival of computers and laptops in shops across the world.
Earlier in 2020, specifically in March, a report in the Financial Times indicated that retailers were told that it is taking up to three times as long for PCs and parts to be delivered.
Industry experts said that only those brands able to pay upfront and work closely with component suppliers, such as Apple and Samsung, would be able to secure enough production capacity, as shortages rippled through the supply chain.
“One channel partner in Australia was notified by key manufacturers that shipments can take up to 14 weeks, as opposed to the normal four weeks,” said Sharon Hiu, an analyst covering sales and distribution channels in Asia-Pacific at Canalys, the technology research firm.
“Some channel companies have been given a 10-week estimate, while others have not been able to get a projected time of arrival at all.”
Indeed, no major OEM was left out.
Research showed that shipment times for Dell computers to Australia were extended from the usual three to five weeks to 10 weeks.
Notebooks and desktop computers of HP’s Elite series had run out of stock in some shops.
In Nigeria, Zinox, a local computer manufacturer and one of Sub-Saharan Africa’s major players, was experiencing delays of up to nine weeks in taking delivery of essential hardware and other components.
With the gradual lifting of the lockdowns in many parts of the world around May, many heaved a sigh of relief as factories began reopening in China and other countries.
However, supply chain experts had warned back then that the effects of the shutdown will linger because the disruption had resulted in shortages of components which only gradually become visible.
Currently, that prognosis is proving to be true.
In addition to fears of a predicted second wave of COVID-19, many global manufacturers are battling to meet five per cent of demands for PCs and laptops.
The foregoing has seen estimates for PC shipments this year revised to reflect the current state of scarcity.
Tech experts expect global PC shipments this year to drop by over 34 per cent in a best-case scenario and 45 per cent in a worst-case scenario.
Why is the global demand for PCs and laptops overshooting supply so much even in the tail-end of 2020?
The reason is hardly far-fetched. Apart from the lingering disruption of supply chains occasioned by the lockdowns, the world has also seen a rise in the adoption of virtual learning or at-home schooling by educational institutions.
Also, many corporate organizations have also embraced virtual work or meetings, encouraging more staff and business partners to leverage tech tools to navigate the current health challenge.
The foregoing scenarios have seen demands for PCs and laptops sky-rocket across the globe.
Further, it has pushed the personal-computer market to its strongest demand growth in more than a decade, according to third-party analyses released by Gartner and IDC in late October.
However, OEMS are unable to mop up the demand which is expected to see scarcity carry on into the latter part of 2021.
“Consumer demand and institutional demand approached record levels in some cases,” disclosed Jitesh Ubrani, a research manager for IDC. “Gaming, Chromebooks, and in some cases cellular-enabled notebooks were all bright spots during the quarter.”
The report also pointed to a paucity of supplies to continue feeding the increased demand for PCs, with panels and processors mentioned as especially in demand.
“The PC industry rode into the third quarter with a sizeable backlog of unfulfilled orders.
“And it appears the quarter will end under the same auspices,” Linn Huang of IDC said in a statement.
“Given that the shortages have been due more to a shortfall of business planning than a technical glitch, we do not anticipate a sudden surge in capacity. Consequently, this backlog will likely carry into 2021.”
Both companies reported that Lenovo Group Ltd. 992, +0.74% had the strongest market share among PC manufacturers in the quarter, topping HP Inc. HPQ, +0.62%, but the Chromebook discrepancy showed up in those numbers as well.
Gartner credited Lenovo with 25.7% of the market and HP 21.6%, but HP’s Chromebook sales made the race much tighter — 23.7% to 23% — in IDC’s results.
Both companies had Dell Technologies Inc. DELL, +0.12% third in the market-share rankings, followed by Apple Inc. AAPL, -0.11% and Acer Inc.
In Nigeria, Africa’s biggest market, many corporates and educational institutions are technically in trouble as the scarcity is taking a huge toll on their budget.
As one technology enthusiast said in a virtual conference last week, “in the 21st century, when you wake up late, you definitely shall pay the price for lateness.’’
However, it remains to be seen how the world will cope in the face of a supply challenge that experts predict will last till June 2021.
Microsoft has announced plans to invest $80 billion in the 2025 fiscal year to expand its data centre infrastructure.
The investment will focus on supporting the training of artificial intelligence (AI) models and the deployment of AI and cloud-based applications.
The company disclosed this initiative in a blog post on Friday, emphasising its commitment to advancing AI and cloud technology.
Since OpenAI launched ChatGPT in 2022, investment in AI has surged as businesses across sectors strive to integrate artificial intelligence into their products and services.
AI requires enormous computing power, pushing demand for specialised data centres that enable tech companies to link thousands of chips together in clusters.
Before now, Microsoft has invested billions of dollars to enhance its AI infrastructure, broadening its data centre network.
Analysts project Microsoft’s fiscal 2025 capital expenditure, including capital leases, to reach $84.24 billion, according to Visible Alpha.
The company’s capital expenditure in the first quarter of the fiscal year rose by 5.3% to $20 billion.
As the primary backer of OpenAI, the tech giant is considered a leading player among Big Tech companies in the AI race, owing to its exclusive partnership with the AI chatbot developer.
More than half of Microsoft’s $80 billion investment will be allocated to the United States, Brad Smith, vice chair and president noted in the blog post.
“Today, the United States leads the global AI race due to the investment of private capital and innovations by American companies of all sizes, from dynamic start-ups to well-established enterprises,” Smith remarked.
Nigeria Data Protection Commission (NDPC) has announced plans to significantly ramp up enforcement and impose substantial fines on data controllers and processors that violate the Nigeria Data Protection Act (NDPA) of 2023.
Vincent Olatunji, national commissioner/CEO. NDPC
This was disclosed by Dr Vincent Olatunji, national commissioner/CEO of the Commission, in a video message outlining the Commission’s 2025 agenda, shared on the agency’s social media platforms.
A statement issued by the Communications Division of the Commission on Friday quoted Dr Olatunji as saying that, “For data controllers and processors, there is going to be massive enforcement. We have never really issued any fine, but going forward, you’ll hear us giving heavy penalties.”
He assured Nigerians that their data rights, as guaranteed by the NDPA, will be fully protected, and defaulting data controllers and processors will face strict consequences.
The Commissioner highlighted the NDPC’s extensive engagements with stakeholders across public and private sectors to promote awareness and compliance with the Commission’s mandate.
The efforts, he said, have resulted in the signing of Memorandums of Understanding (MOUs) with key organisations, including the National Insurance Commission (NAICOM), National Lottery Regulatory Commission (NLRC), the Data Privacy Office of Canada, and the Dubai International Financial Centre Authority (DIFC), among others.
Dr Olatunji also shared that the NDPC will advance to the second phase of its Strategic Roadmap and Action Plan (NDP-SRAP 2023-2027) in 2025.
This phase is expected to create job opportunities within Nigeria’s data protection and privacy ecosystem, particularly for young people.
The Commission has been actively training Nigerians in data protection and privacy, creating a pool of globally competitive experts within the data protection sector in 2025.
“There are a lot of data controllers and processors that are looking for people to work with them. Now those that we have trained in 2024, those we have certified, we are going to do more this year to actually launch them to the job market where they can really work with data controllers and processors,” he said.
Additionally, the NDPC will continue nationwide efforts to promote data protection awareness.
The Commission aims to educate citizens about their rights and the importance of data privacy while reminding data controllers and processors of their obligations under the NDP Act.
Dr Olatunji emphasised that these initiatives are part of the broader goal to embed a culture of data protection and privacy in Nigeria.
As part of its international engagement efforts, Nigeria will host the “Network of African Data Protection Authorities Conference” in May 2025, with over 40 nations with existing data protection laws expected to attend.
According to Dr Olatunji, this global event will position Nigeria as a leader in the data protection ecosystem, and bring significant economic benefits to the country.
The NDPC reiterated its commitment to ensuring data protection and privacy become integral to Nigeria’s digital landscape, building trust and fostering economic growth, the statement added.
Nigeria Postal Service (NIPOST), achieved a 275 percent increase in revenue for the year 2024, according to Tola Odeyemi, postmaster general.
At the beginning of the year, NIPOST set an ambitious target of generating N10 billion in revenue.
Although specific figures for the end of the year were not disclosed, the reported increase suggests a significant recovery for the postal service, which had previously faced consistent decline.
Odeyemi, who made the disclosure while listing NIPOST’s achievements for the year recently, attributed the growth to a series of reforms aimed at enhancing service quality and eliminating revenue leakages
The NIPOST boss detailed the steps taken to boost revenue, noting the implementation of Point of Sale (PoS) terminals in high-transaction areas, which has streamlined payment processes and improved customer experience.
She said, “One of the major achievements for us in 2024 has been a 275% increase in revenue from 2023. We achieved this by plugging a lot of the revenue leakages that we have by deploying PoS terminals for payment in our high transaction areas, as well as ensuring that our quality of service goes up.”
Looking ahead, Odeyemi outlined NIPOST’s plans to sustain this growth trajectory.
She said the organisation has embarked on renovations and upgrades of key locations in Abuja, Lagos, and Kaduna, alongside enhancements to the Postal Institute, which is central to the agency’s change management initiatives.
Furthermore, she stated that NIPOST is gearing up for several major developments in 2025, including the rollout of a national addressing system and digital postcode services, specialised logistics for agriculture and healthcare, and a relaunch of its financial services.
“There will be infrastructure upgrades, which will take place across the Federation and there will be an increase in access to government services through your local NIPOST location,” she said.
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