Few weeks after Samsung launched its latest mobile phone, the Samsung Galaxy Note 7, the company has advised consumers in some markets, (not Nigeria) to stop using the mobile phone, and to immediately participate in a replacement programme, following further reports of the phones catching fire.
Meanwhile, the company has lost $22billion in market capitalisation as its share price has ranked 11 per cent since Friday last week, the largest two-day decline in eight years, according to Bloomberg.
The call came after the US Consumer Product Safety Commission recommended on Friday that consumers stop using the smartphone and major airlines globally banned use during flights.
Samsung issued a recall for Galaxy Note 7 smartphone in early September in 10 markets, including the US and South Korea, but not in Nigeria, following reported cases that the battery of Galaxy Note 7 phone burst into flames after fully charged.
Defective batteries, which caught fire during charging and normal use, were apparently manufactured by Samsung SDI. Batteries made by its other supplier, Amperex Technology, have not faced the same issues.
Samsung said it is now only using batteries made by Amperex for the Galaxy Note 7 and has ordered an additional four million as replacements, Yonhap reported. The Chinese firm, which also supplies batteries for Apple’s iPhones, is now the sole battery suppler for the Note 7.
Samsung’s battery unit previously supplied about 70 per cent of the batteries for Note 7. The world’s largest smartphone maker reportedly was looking for a third battery supplier but hasn’t found one. As demand for the iPhone 7 models takes off, Samsung could face a supply crunch.
With an estimated 2.5 million Galaxy Note 7 units sold, analysts say the recall could cost Samsung as much as $5 billion in revenue. The smartphone was launched on August, 2, 2016.
The company has lost $22 billion in market capitalisation as its share price has tanked 11 per cent since Friday – the largest two-day decline in eight years, according to Bloomberg.
Samsung issued a statement for the Hong Kong and Macau markets, outlining that “we wish to re-emphasise that Galaxy Note 7s purchased in Hong Kong and Macau from authorised resellers on or after September 2, are not affected by the issue as those batteries are provided by a different supplier”.
It previously said that fewer than 500 Galaxy Note 7s sold in Hong Kong and Macau between 26 August and 1 September “may be affected by the battery issue”. It said a replacement programme is running and it “has been proactively contacting customers who may be affected.
The Galaxy Note 7 is a beautiful, capable Android phone that showcases Samsung’s best in design, speed and features, but not in battery life.
The 64GB base model leaves users with plenty of space for photos, videos and games, and it’s a real improvement over 2015’s Note 5.
The 5.7-inch, stylus-slinging Samsung Galaxy Note 7 is a damn fine phone. Its sexy wraparound glass, precise S Pen and brilliant screen would impress anyone, but it’s ideal for artists, architects and people who would rather write with their own hand than type on a screen.
Gov. Sule Joins the Digital Economy and E-government Council
Nasarawa State Governor, Abdullahi Sule has been appointed a member of the Digital Economy and E-government council by the President, Muhammadu Buhari.
The Chief Press Secretary to Governor Sule, Ibrahim Addra, disclosed this in a statement he issued to journalists in Lafia, the state’s capital.
According to the release, the governor’s appointment was announced in a letter signed by Isa Ali Ibrahim Pantami, Minister of Communication and Digital Economy.ica.
Part of the statement reads “ the constitution of the Presidential Council is in an effort to implement the National Digital Economy Policy (NDEPS) and the Nigerian E-government Master Plan (NEGMP).
“The Minister of Communication notes that Nasarawa State is critical to the success of Nigeria’s Digital Economy Agenda.”
The statement stated that Governor Sule and other members of the council would be inaugurated on a date to be announced by the council’s chairman, President Buhari.
The National Digital Economy Policy and Strategy (NDEPS) was developed in line with the Presidential directives given to the Minister of Communications on his assumption of office in 2019.
Accordingly, the aim was to enable Nigeria to take advantage of digital technologies are transforming every aspect of modern life, in order to become a global leader in the digital economy and serve as a catalyst for economic diversification and the achievement of key national goals such as improving security, reducing corruption, and expanding the economy.
United States Federal Trade Commission Fines Twitter $150 Million Over Privacy, Security Violations
The United States Federal Trade Commission (FTC) has ordered Twitter Incorporation to pay a sum of $150m as a fine for violating the 2011 administrative order of the Commission over its decision to use the email addresses and phone numbers of its users for targeted advertising.
The suit noted that the misrepresentations violated the FTC Act. Therefore, the commission and Twitter agreed to a settlement of $150 million after Twitter had earlier told users that the data was gathered for security purposes.
Checks by Investors King show the verdict was announced by the U.S Department of Justice (DoJ) on Wednesday. The US DoJ in its 20-page count filed in the US District Court alleged that Twitter asked users for their contact information to make their accounts more secure. The social media giant failed to tell users that it would also use their phone numbers and email addresses to help companies send targeted ads to them.
“Twitter obtained data from users on the pretext of harnessing it for security purposes but then ended up also using the data to target users with ads,” FTC Chair, Lina Khan accused.
Khan further said the practice affected more than 140 million Twitter users while boosting Twitter’s primary source of revenue.
The 2011 FTC order stated that Twitter “engaged in deceptive acts or practices” by misrepresenting how it handled user data and that the company lacked reasonable safeguards to keep accounts and data secure. Additionally, the order barred Twitter from misrepresenting “the extent to which [it] maintains and protects the security, privacy, confidentiality, or integrity of any nonpublic consumer information,” the order read in part.
Twitter’s settlement covers allegations that it misrepresented the “security and privacy” of user data between May 2013 and September 2019, according to the court documents.
In addition to the monetary settlement, the agreement requires Twitter to improve its compliance practices,” according to the statement of order.
According to the complaint issued, “Specifically, while Twitter represented to users that it collected their telephone numbers and email addresses to secure their accounts, Twitter failed to disclose that it also used user contact information to aid advertisers in reaching their preferred audiences.”
Twitter is a free service that generates its revenue majorly through advertising
The company generated $5bn in revenue in 2021 and said in a filing earlier in May that it had put aside $150m after agreeing” in principle” upon a sanction by the FTC.
TELCOS Decry Government’s Decision on Telephone Tax
The Association of Licensed Telecoms Operators of Nigeria (ALTON) has said the recent move by the Federal Government to add a one kobo per second tax on phone calls is a misplaced priority.
Investors King recalls that the Federal Government of Nigeria had, on Monday, said it will implement a one kobo per second tax on phone calls in the nation to fund free healthcare for the vulnerable.
ALTON said it is a “bad fate” on the part of the Government and it is badly intended. “This is because when we came out that the government should look at our cost of operations and give us room to review tariffs, everybody treated us like an outcast.
“The same government is now coming in a matter of days to say they are introducing new taxes. So, when they were saying to us that we cannot increase tariff because it is insensitive to the plight of the people and now, they brought another tax thing through the back door, we think it is bad fate and badly intended. So if we cannot review based on the impact it will have on subscribers, why are they bringing in another tax, still on subscribers.
“Government cannot act in one way and say another thing”, ALTON said.
According to ALTON, this will affect subscribers because they get less value for what they pay for.
“It means now that when you buy a 100 recharge card, the percentage will be deducted from it and paid to the government. So it is shortchanging the people. What will happen is that operators will be mandated to collect this tax on their behalf and remit it to the government”, the association noted.
ALTON suggested that although the motive for the tax rate is understandable, the government should have looked elsewhere to source it.
It said: “Not telecoms subscribers whom the government has said its suffering because of living lately
“We will not complain as operators because we will definitely remit, it is the subscribers that will bear the brunt”.
A Lagos State resident, Taiwo Popoola, in a conversation with Investors King, said the decision to increase the tax rate will be too hard for an average Nigerian to bear if implemented. According to him, only the upper class of the society will conveniently afford it.
“On the part of the users, buying airtime will drastically reduce. People would resolve to use social media channels to reach each other and may, in turn, reduce the income of these telecommunication companies,” Taiwo said.
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