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HarmonyOS: Apple, Google to Lose Emerging Markets

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  • HarmonyOS: Apple, Google to Lose Emerging Markets

Following US sanctions that prohibited American companies from dealing with Chinese companies –including Google, Android manufacturer –Huawei, the world’s second-largest smartphone manufacturer, has now launched its own operating system, HongmengOS.

Richard Yu, the CEO of the consumer division, Huawei, said the operating system –the HongmengOS, known as HarmonyOS in English can work across different devices from smartphones to smart speakers and even small sensors.

According to Yu, HarmonyOS is part of Huawei Internet of Things–connecting more internet devices.

The company plans to first implement the new operating system on “smart screen products” later this year and gradually roll it out on other devices over the next three years.

HarmonyOS will first launch in China before Huawei push it to other emerging markets.

The new operating system is expected to further Chinese companies’ reach in emerging markets where they already have the largest smartphone market share ahead of Samsung and Apple.

China’s major smartphone brands, Huawei, OPPO, Vivo, Xiaomi, and Realme (HOVXR), have combined global market share of 42 percent in the second quarter of 2019 despite the sanctions.

In the same quarter, Samsung shipped 76.6 million units, up 7.1 percent from 71.5 million units shipped in the second quarter of 2018.

Huawei came second with 56.7 million, 4.6 percent higher than 54.2 million shipped a year ago. Apple came third with 36.4 million, down by 11.9 percent from 41.3 million shipped a year ago.

Xiaomi, OPPO, Vivo, Lenovo, and Realme exported 32.3 million, 29 million, 27 million, 9.5 million and 4.7 million, up 0.9 percent, -2 percent, 2.1 percent, 6 percent and 848 percent.

Chinese companies exported mainly to emerging markets using competitive pricing strategy to penetrate the largely untapped low-income markets. However, because all these companies use Android operating system, they are expected to switch to HarmonyOS if the US-China failed to reach a trade agreement.

According to Varun Mishra, Research Analyst at Counterpoint Research, “Heavy marketing, faster portfolio refresh, high spec devices at aggressive prices, and multi-channel presence are some of the key reasons why Chinese brands fared better than the local and global OEMs. These brands have been aggressively expanding outside China and achieving growth offsetting the saturation in their home market. Their strategies and product portfolios are more aligned to the local needs and preferences, which is one of their key strengths.”

Prior to the launching of HarmonyOS, experts projected a further decline in Huawei smartphone shipment due to the US sanctions but with the company announcing HarmonyOS and planning to make it an open-source to drive apps development and broaden it adaptability to more devices, Chinese smartphone companies are poised to capture more emerging markets going forward or the US would be forced to pull back and allow Android to continue servicing existing Chinese users after the expiration of 90 days grace period.

Yu said making HarmonyOS open-source could help the OS scale and attract a large number of useful apps.

He said, without mentioning any name, “many” app developers “have strong interest” in using HarmonyOS.

He added that he thinks Apple’s iOS and Android don’t cater for enough internet devices, therefore, the companies plan to throw open HarmonyOS for faster growth.

Again, a lot of American developers looking to break into China, over 1.3 billion market and other emerging economies, will jump on the opportunity, giving HarmonyOS access to some of the world’s best developers. The only thing synonymous with Apple iOS and Android.

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 iPhone 14

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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