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Snapchat Shares Surge 44% in Market Debut

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  • Snapchat Shares Surge 44% in Market Debut

Snap Inc. (SNAP) opened for trade at $24 per share on Thursday, up 40% from its pricing of $17 per share. Since its core product, Snapchat, has already captured the millennial market, now the real opportunity is to lure in older Americans, particularly in a corporate context.

Tech executives like Jennifer Morgan, the president of software company SAP’s (SAP) North American division, are using Snapchat to communicate with her 20,000 employees. Morgan, 45, scrapped the all-hands meeting and replaced it with a pre-recorded two-minute video that she e-mailed employees. At the end of the video, she shares her Snapchat code and asks employees to continue the conversation or ask her any questions through the app.

“Traditionally, when you think about communication in the office, employees go to the leader. I’m trying to develop a way to speak with my employees in ways that work for them,” she told Yahoo Finance. “Though nothing can replace in-person events, I’ve discovered that people appreciate effective, efficient communication.”

After consulting with several employees and observing how her 15-year-old son uses the app, Morgan decided that replacing town hall meetings with Snapchat was both efficient and added a layer of personalization.

“I was amazed at how many people thanked me for not only giving them back the time but opening up communication on a platform like Snapchat,” she said. “I think the app is a way to easily communicate in a perfectly imperfect way with my employees.”

She highlights that business executives can come off scripted, almost too polished, and are inaccessible to employees.

“What I love about Snapchat is it’s very real, very authentic, and you can show scenes of your personal and professional lives. A lot of people make these assumptions about both male and female leaders with regard to the pace, glamour and travel of our lives,” she said. “It’s fun to show that, sure, some of those assumptions are true — but at the same time we are all human beings tugging at our time, dealing with the same travel hiccups everyone else experiences.”

Morgan is now one of Snapchat’s 158 million daily active users. Other business leaders may want to take note.

It’s common knowledge that Snapchat is wildly popular among teens. Users spend 25 to 30 minutes every single day sending and receiving these ephemeral photos.

But, for Gen Xers, baby boomers, and even the millennials who aren’t sold on the entertaining utility of the app, this could be a goldmine use case that Snapchat can — and should — tap into.

This decision fits into the larger push that SAP has been making to shake up the traditional way of internal communication.

This month, SAP will be eliminating the “formal, traditional and painful” annual employee reviews for all employees around the world and replacing them with more “frequent and informal conversations” between employees and managers, according to a company spokesperson.

Though Morgan is not part of the app’s core user demographic (70% of Snapchat’s US users are millennials), the app has gained traction with the older generations (parents (and grandparents) love Facebook, after all). And though the overwhelming friend adds came from her employees in their 20s and 30s, older employees have also created accounts to connect with Morgan.

“People who were already on the app added me right away. But others have been creating accounts — like me — now,” she said. “A lot of folks are increasingly curious about Snapchat, especially because they know their kids are on it.”

She said that she’s seeing a phenomenal return on her investment. Several hundred of her employees have added her and 5-20 people have been adding her every day.

“I don’t see it as work. It’s an easy, natural thing to do, and an everyday, on-the-go part of my job now,” she said. “My life blends. I work a lot so it becomes difficult to separate who I am at work and home — I’m pretty much the same person. When I signed up, I knew I had to be willing to put myself out there, for anyone to see.”

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Starlink Pulls Plug on Ghana, South Africa, and Others

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Starlink, the satellite internet service operated by SpaceX, has announced the cessation of services in countries including Ghana and South Africa.

This decision comes as a significant blow to users who have come to rely on Starlink for their internet connectivity needs.

The decision, set to take effect by the end of April 2024, will disconnect all individuals and businesses in unauthorized locations across Africa, including Ghana, South Africa, Botswana, and Zimbabwe.

While subscribers in authorized countries such as Nigeria, Mozambique, Mauritius, and others can continue to use their kits without interruption, those in affected regions face imminent loss of access.

One of the reasons cited by Starlink for the discontinuation is the violation of its terms and conditions.

The company explained that its regional and global roaming plans were intended for temporary use by travelers and those in transit, not for permanent use in unauthorized areas. Users found in breach of these conditions face the termination of their service.

Furthermore, Starlink’s recent email to subscribers outlined stringent measures to enforce compliance.

Subscribers who use the roaming plan for more than two months outside authorized locations must either return home or update their account country to the current one. Failure to do so will result in limited service access.

The decision to discontinue services in certain countries raises questions about the future of internet connectivity in these regions.

Also, concerns have been raised about Starlink’s ability to enforce the new rules effectively. Reports indicate that the company has previously failed to enforce similar conditions for over a year, raising doubts about the efficacy of the current measures.

Starlink’s decision to pull the plug on Ghana, South Africa, and other nations underscores the complexities of providing satellite internet services in diverse regulatory environments.

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Nigeria’s Broadband Penetration Stalls at 42.53% Amid Connectivity Challenges

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Nigeria’s broadband penetration has stalled at 42.53% as of January, according to the latest report.

Subscriptions currently stand at 92.19 million, indicating a significant gap in connectivity, particularly in rural areas.

The Nigerian National Broadband Plan 2020-2025 aims to increase broadband penetration to 70% by 2025, with the ultimate goal of achieving 96% mobile broadband coverage by 2030.

However, this ambitious target requires substantial investment—approximately $461 million, according to a recent report by the Global System for Mobile Communications Association (GSMA).

While the country’s major telecommunications companies, such as MTN Nigeria and Airtel Africa, have invested heavily in expanding their network infrastructure, much of this development has been concentrated in urban areas. Rural and underserved regions face a significant coverage gap, exacerbating the digital divide.

Despite these challenges, Nigeria has made progress in improving its broadband infrastructure. Since 2012, the mobile broadband coverage gap across Africa has decreased from 56% to 13% in 2022, due to significant investments in network capacity and new technologies.

Nonetheless, millions of Nigerians, particularly those in rural regions, remain without access to essential telecom services.

To address this issue, Nigeria’s government established the Universal Service Provision Fund (USPF) in 2006, aimed at bridging the connectivity gap and expanding broadband access to unserved and underserved areas.

The fund provides resources for deploying telecommunications infrastructure in economically unviable regions.

The success of these initiatives, along with increased investments in broadband infrastructure and policies to incentivize internet expansion in remote areas, will be crucial in closing the connectivity gap and improving digital access for all Nigerians.

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iPhone Shipments Drop Amid Resurgence of Android Rivals

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Apple Inc. reported a significant drop in iPhone shipments during the March quarter, reflecting a downturn in sales across China amid the resurgence of competition from Android-powered rivals.

According to market tracker IDC, the tech giant shipped 50.1 million iPhones in the first three months of the year, a 9.6% year-on-year decline that fell short of the average analyst estimate of 51.7 million.

The steep decrease in iPhone sales marks Apple’s most significant quarterly dip since 2022, when Covid-19 lockdowns disrupted supply chains.

This time, the Cupertino-based company faces challenges from resurgent competitors such as Huawei Technologies Co. and Xiaomi Corp.

These firms have rebounded strongly in recent quarters, and their innovative product lines have begun to reclaim market share from Apple in China.

Samsung Electronics Co. regained its position as the top smartphone supplier globally, while Apple ranked second. Xiaomi closed the gap on Apple, shipping 40.8 million units, an impressive 33.8% increase year-on-year.

Transsion Holdings, another key player in the budget smartphone segment, nearly doubled its shipments, showcasing the competitive environment Apple faces.

Nabila Popal, research director at IDC, highlighted the broader shift in the smartphone market, which has recovered from the supply chain disruptions and challenges of recent years.

“While Apple has demonstrated resilience and growth in recent years, maintaining its pace and share in the market may prove challenging as Android manufacturers make strides,” Popal commented.

Apple has a strong brand and loyal customer base, yet its market position may be tested further by the aggressive pricing and innovative products offered by Chinese rivals.

The company’s efforts to sustain its premium pricing strategy may also be challenged as more customers consider switching to Android alternatives.

As the tech industry looks ahead to the rest of the year, Apple’s upcoming earnings report and strategic moves to address this competitive pressure will be closely watched by investors and industry observers alike.

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