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Rising Repair Costs Trigger Demand for Rugged Phones

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  • Rising Repair Costs Trigger Demand for Rugged Phones

The increasing cost of repairing a damaged smart phone may trigger demand for durable phones across the globe because the market for resilient smart phones, which can take rough handling and sturdy screens, is bucking the stagnant trend in the wider market.

Indeed, new data from CCS Insight, a research company, predicted the market for tough handsets will boom 25 per cent this year to 22.2 million units, as more people opt for durable phones that can withstand a harsh environment. CCS expects the niche to continue to expand rapidly, with volumes of 54.5 million by 2021.

This is in contrast to a growth of less than four per cent for the global smartphone market, which has slowed as more consumers opted to hold on to their phones for longer.

In Nigeria, though, smartphone penetration as at 2016 was put at 30 per cent. The Guardian gathered that the cost of repairing damaged phones, especially those with screen problems, costs as much as between N80, 000 and N150, 000, especially for the high-end ones such as Apple, HTC, Samsung, LG, and many others. While the low end ones could go for between N10, 000 and N50, 000, depending on the negotiating power of the owner.

A computer engineer, with office at the Computer Village, Ikeja, who gave his name as Chijioke Magu, said most smartphone problems are usually damaged screens, which got broken in the process of handling.

Magu decried that he has close to 70 pieces of notable brands dumped by owners in his shop because they couldn’t afford to pay between N100, 000 and N150, 000 to repair a screen, especially now that the economy is bad, “rather, they go for cheaper feature phones of between N20, 000 and N30, 000.”

According to him, the possibility is high that in the next few years, phones whose screen and other parts are not tough will lose market share, “especially those that flaunt themselves as high end.”

CCS noted the market for rugged phones is split between consumer models and more expensive ultra rugged ones. It identified consumer durable phones to include the Cat Phone, made by Britain’s Bullitt Group, Samsung’s Galaxy Active, and Xcover models, plus ones from Japan’s. It stressed that ultra strong models aimed at industry are made by Sonim, Motorola Solutions, and Bartec Pixavi.

Resilient phones represent a small portion of the overall smartphone market, which is expected to reach 1.6 billion unit shipments this year. Yet CCS believes more consumers that work in manual labour are using their tough phones as a primary device, given improvements in their designs to make them less “thick and bulky.”

Head of research at CCS Insight, Ben Wood, said the durability of sturdy phones makes the devices more attractive to consumers who are fed up with fragile phones. “The mainstream Android smartphone market is now dominated by a small number of large players offering similar looking devices with near similar features. Differentiation is becoming increasingly challenging,” he said.

During its return to Nigeria, President, Sub-Sahara Africa, HMD Global, owners of Nokia, Justin Maier, said the brand will be able to offer something for everyone. From the new Nokia 3310 feature phone to the premium Nokia 6 smartphone, “we are bringing phones to Nigeria that will entice and delight, while offering simplicity, reliability, quality, durability and importantly, the human touch. I am looking forward to this new chapter in Africa for Nokia Phones.”

Asked why it returned to the country after about 10 years of absence, the Business Operations and Development Manager, Motorola Africa, Marcel Van De Pas, said apart from the fact that the market in the country is huge, “If we go back to the days of the Razor brand, it was disruptive and rugged, which made people bought into it immediately. The same will happen with the set of smartphones we are bringing into the country. Nigerians are looking for trusted and durable brand and that we have in Motorola and that also forms part of why we have returned to the market powerfully.”

At the launch of Freetel, a new Japanese smartphone in Nigeria, Vice President, International Sales, Freetel, Eugene Yoshioka, boasted of the phones ruggedness, saying the company would help Nigeria to deepen smartphone penetration.

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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Fintech

From Trading to Credit: Robinhood Launches No-Fee Credit Card with Gold Membership Perks

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Robinhood

Robinhood Markets Inc. has announced the launch of its highly anticipated no-fee credit card and it was accompanied by exclusive perks for Gold membership subscribers.

This bold move is a step in the company’s mission to evolve into a comprehensive financial services provider.

The Robinhood Gold Card boasts an array of enticing features. Chief among them is the absence of annual costs or foreign transaction fees, positioning it as an attractive option for consumers seeking financial flexibility.

Moreover, cardholders stand to benefit from a generous 3% cash back on all categories of purchases, a competitive offer in comparison to industry rivals.

Vlad Tenev, CEO of Robinhood, emphasized the company’s commitment to innovation and industry leadership in an interview.

He expressed the intention to not merely introduce a credit card, but to revolutionize the market with a product that sets new standards for customer satisfaction and financial empowerment.

The announcement has sparked enthusiasm among investors, with Robinhood’s shares witnessing a 6.9% surge in early market trading following the news.

This surge further underscores the market’s confidence in the company’s strategic direction and its potential to disrupt traditional financial services.

Beyond the credit card venture, Robinhood has been steadily diversifying its offerings. With the introduction of retirement products and the expansion of commission-free trading services internationally, the company is positioning itself as a formidable player in the global finance landscape.

As Robinhood continues to innovate and expand its suite of services, its trajectory suggests a promising future as a leading force in democratizing access to financial tools and services.

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Telecommunications

NCC Files Copyright Infringement Charges Against MTN Nigeria and Others

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Karl O Toriola - Investorsking.com

The Nigerian Copyright Commission (NCC) has taken legal action against MTN Nigeria Communications Ltd. and four individuals, including its Chief Executive Officer, Karl Toriola, over alleged copyright infringement.

The charges, filed in the Federal High Court, Abuja Division, revolve around the unauthorized use of musical works belonging to artist Maleke Idowu Moye.

According to the NCC, the defendants are accused of offering for sale, selling, and trading musical works of Maleke without his consent between 2010 and 2017. These works were allegedly used as Caller Ring Back Tunes without proper authorization.

The musical pieces in question include popular tracks such as “911,” “Minimini-wanawana,” and “Stop racism,” among others.

The commission further alleges that the defendants distributed these musical works to subscribers without authorization, infringing upon the rights of the artist.

The charges are based on provisions of the Copyright Act, Cap. C28, Laws of the Federation of Nigeria, 2004.

As the case awaits assignment to a judge and a fixed date for mention, it marks a significant development in the ongoing efforts to uphold copyright protection in Nigeria’s telecommunications sector.

This legal action underscores the NCC’s commitment to safeguarding the intellectual property rights of artists and creators within the country.

MTN Nigeria, a major player in the telecommunications industry, now faces a legal battle that could have broader implications for how intellectual property rights are respected and enforced within Nigeria’s digital landscape.

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Telecommunications

MTN’s MoMo Sees 32.2% Surge in Transaction Volumes

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MTN Nigeria - Investors King

MTN Group’s mobile money platform, MoMo, has experienced a 32.2% surge in transaction volumes.

With 72.5 million active users, MoMo continues to solidify its position as a leading fintech service provider in Africa, tapping into the continent’s burgeoning mobile banking sector.

The company’s success underscores the growing trend of Africa’s young and tech-savvy population embracing mobile technology to address financial needs.

Mobile phones are increasingly becoming a tool for bridging gaps in services, particularly in banking, presenting a lucrative opportunity for wireless carriers like MTN to capitalize on the burgeoning fintech market.

MTN’s achievement comes as it finalizes a deal with Mastercard Inc., valuing its fintech business at an impressive $5.2 billion.

This strategic partnership further enhances MTN’s position in the digital finance space, positioning it for continued growth and innovation.

However, MTN is not alone in its fintech endeavors. Rivals such as Airtel Africa Plc, Safaricom Plc, and Vodacom Group Ltd. are also making strides in digital transformation, with plans to separate and monetize their fintech businesses in the long term.

Airtel Africa, for instance, is reportedly considering an IPO for its mobile money unit, indicating the high stakes and intense competition within the sector.

Despite the remarkable success in its fintech ventures, MTN faced challenges in its core telecommunications business, with service revenue growth slowing to 6.8%.

Inflation and currency devaluation in key markets, particularly Nigeria, impacted profitability, highlighting the complexities of operating in diverse African markets.

As MTN continues to expand its fintech footprint and invest in infrastructure to enhance connectivity across the continent, it remains poised to capitalize on the immense potential of Africa’s digital economy.

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