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Alphabet Stock Declined as Much as 4% Following Samsung’s Plan to Replace Google With Bing

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A logo is pictured at Google's European Engineering Center in Zurich

American multinational technology conglomerate holding company Alphabet has seen its stock price decline as much as 4% on Monday, following Samsung’s plan to replace Google with Microsoft Bing as a default search engine for its mobile phones.

In the early hours of Monday, Google stock fell to $104.90, erasing $55 billion in Alphabet’s market cap. Microsoft on the other hand, outperformed the market, rising about one percent.

Commenting on this, analyst James Cordwell said that “Investors worry Google has become a lazy monopolist in search and the developments of the last couple of months have served as a wake-up call”. He added that the potential costs tied to making Google Search more competitive than AI-powered Bing could also be a cause of concern.

It would be recalled that on Monday, reports revealed that Samsung Electronics, a key Google partner, is considering replacing the Google search engine in its phones with Microsoft Bing. This reportedly caused panic in Google’s camp, as the tech giant which earns close to $3 billion in annual revenue from the contract with Samsung is concerned about being replaced.

Investors King understands that Samsung’s choice to use Microsoft Bing as its default search engine might be a result of its growth in the search engine industry which saw it incorporate an AI-based Bing Chatbot to enhance users’ experience, which has been gaining more users since the start of the year.

While Microsoft has integrated the artificial intelligence technology behind ChatGPT into its product, Google’s debut of its new chatbot, Bard underwhelmed during a February presentation.

Google strongly believes that Samsung’s preference for Microsoft Bing as the default search engine for its devices is because of the AI features it offers. Therefore, reports reveal that Alphabet is currently working hard to defend its market share, with a team of more than 160 people working to incorporate artificial intelligence into its Google search product.

The tech giant is doing everything possible to catch up with its rival Microsoft in the adoption of A. I service. The threat to Google’s search engine dominance is reportedly pushing the company to revamp its search products, including creating an entirely new A. I powered search engine.

While talks between Samsung Electronics and Google continue, the potential of Samsung Electronics moving to Bing as the default search engine underlines the significance of alliances and competition in the digital sector. If Samsung moves to Bing, Microsoft might make a significant breakthrough in the search engine sector, which Google has long dominated.

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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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