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Smartphone sales slow across Africa

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Africa’s smartphone revolution is showing signs of a slowdown according to the latest figures compiled by International Data Corporation (IDC).

The global technology research and consulting services firm says the continent’s smartphone market totaled 95.37 million units in 2016. And while this is up 3.4% year on year, it represents a considerable deceleration from the double-digit growth rates seen in the previous two years, with demand being hampered by the currency fluctuations that are affecting the continent.

Overall, 215.33 million mobile handsets were shipped in Africa during 2016, up 10.1% on the previous year. However, it was feature phones that were largely responsible for this growth, with shipments increasing 16.1% year on year in 2016 to total 119.97 million units. This growth saw feature phones increase their unit share of Africa’s overall handset market from 53% in 2015 to 56% in 2016.

“Africa has always been a tough market for mobile phone companies to crack, and in 2016 that challenge got even harder,” says Simon Baker, program director for mobile devices at IDC CEMA. “Many African economies struggled throughout 2016, and this had an inevitable knock-on effect on the smartphone market, which had previously experienced a very strong 2015. It was a particularly tough year in Nigeria, with the devaluation of the naira causing a drop in confidence in the distribution channel. And while North African markets saw an increase in overall handset shipments in 2016, the pace of growth slowed year on year due to exchange-rate fluctuations in Egypt and security issues in Algeria.”

Samsung continued to lead the African smartphone market in 2016, largely through a reworked product portfolio that now includes more mid- to low-range models. However, at 28 million units, its 2016 smartphone shipments in Africa showed little growth from the figures recorded in 2015. The second-placed smartphone vendor was Transsion, widely known throughout Africa via its itel, Infinix, and Tecno brands. And in terms of feature phone shipments, Transsion comfortably outperformed its main competitors in 2016.

Chinese vendors have been showing more interest in the African market in recent quarters and expanding into new countries. However, this expansion strategy is delivering mixed results across the continent. Of the big international Chinese vendors, Huawei posted year-on-year shipment growth to remain as Africa’s number-three smartphone vendor in 2016, while Lenovo saw flat growth and ZTE and Alcatel both suffered slight declines.

“Price competitiveness has become a key issue in many African markets,” says Ramazan Yavuz, research manager for mobile devices in Africa at IDC CEMA. “To grow significantly in these markets, vendors have to be able to address the continent’s large low-income population by providing phones that are priced very competitively. As such, global vendors are cautious of the lower-priced Chinese brands now entering the market and are keeping a close eye on them.”

3G handsets continue to account for more than half of all new smartphone shipments in Africa, although 4G devices saw year-on-year growth of more than 50% in 2016. IDC is predicting that 4G handsets will account for more than half of new smartphone shipments in Africa by 2018, as prices for entry-level 4G phones drop and the number of 4G networks across the continent grows. For example, Egypt saw the launch of a major 4G network towards the end of 2016, and more countries are set to follow suit in 2017.

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Data journalism takes top prize in revamped awards

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The entries to the 2018 Vodacom Journalist of the Year Awards were extraordinarily varied and of an excellent standard, with new categories introduced which are based on content as opposed to platforms. This year, the judges decided that two entries were equally worthy of the coveted Vodacom Journalist of the Year Award.

The first co-winning entry, in the new Data Journalism category, is a set of stories by Alastair Otter and Laura Grant of Media Hack which showed how Data Journalism is shaping the future. The second co-winning entrant is Bongani Fuzile of the Daily Dispatch for his articles in the investigative category on how migrant workers were being ripped off by pension deductions (full citations below).

Convenor of the judging panel Ryland Fisher says: “This year we modernised the 12 categories that journalists could enter their work in and the change was embraced by entrants. In a turbulent time for media, the 2018 entries once again proved that there are excellent South African journalists delivering praiseworthy work, and we commend them for finding new and innovative ways to cover the news.”

Takalani Netshitenzhe, Chief Officer for Corporate Affairs at the Vodacom Group, says: “Vodacom is proud of its 17-year association with these prestigious awards, which make an important contribution to our society through the recognition of journalistic excellence. I’d like to congratulate all of tonight’s winners and, as always, I’d like to pay tribute to our hardworking judges. Ryland Fisher, Mathatha Tsedu, Arthur Goldstuck, Collin Nxumalo, Elna Rossouw, Patricia McCracken, Megan Rusi, Mary Papayya, Albe Grobbelaar and Obed Zilwa: thank you for making these awards a continued success.”

Veteran journalist and media stalwart Ms Amina Frense is the winner of the 2018 Vodacom Journalist of the Year Lifetime Achiever AwardShe has spent decades in mainstream media both locally and internationally. She is a former Managing Editor: News and Current Affairs at the SA Broadcasting Corporation. She has worked in many countries abroad as a producer and a foreign correspondent, has written two books and is also a founding member of SANEF where she still serves as a council member (full citation below).

The overall winners share the R100 000 main prize. National winners in the various categories are as follows, with each winner taking home R10 000:

SPORT

The entries in this category were of an exceptionally high standard. One entrant stood out and became the unanimous winner. This journalist showed an exceptional skill for story-telling and for finding unexpected angles and unknown facts. For his stories about Musangwe’s fight for recognitionAge cheating in SA football, and Hansie Cronje revisited, the winner is Ronald Masinda, and the team of Gift Kganyago, Nceba Ntlanganiso and Charles Lombard from eSAT TV.

Click here to see who won the awards for data journalism , CSI/sustainability and photography.

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Cons exploit Telegram ICO

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Kaspersky Lab researchers have uncovered dozens of highly convincing fake websites claiming to be investment sites for an initial coin offering (ICO) by the Telegram messaging service. Many of these websites appear to belong to the same group. In one case alone, tens of thousands of US dollars’ worth of cryptocurrency were stolen from victims believing they were investing in ‘Grams’, Telegram’s rumoured new currency. Telegram has not officially confirmed an ICO and has warned people about fraudulent investor sites.

In late 2017, stories started to circulate that the Telegram messaging service was launching an initial coin offering (ICO) to finance a blockchain platform based on its TON (Telegram Open Network) technology. Unverified technical documentation was posted online, but there appears to have been no confirmation from Telegram itself. The resulting confusion seems to have allowed fraudsters to capitalise on investor interest by creating fake sites and stealing vast sums of money.

Kaspersky Lab researchers have discovered dozens of such sites, possibly belonging to the same group, claiming to sell tokens for ‘Grams’ and inviting investors to pay with cryptocurrencies including Bitcoin, Ethereum, lice litecoin, dash and Bitcoin dash. A record of transactions on one site revealed that the scammers were able to steal at least $35,000 US dollars’ worth of Ethereum from investors.

The researchers found that some of the websites were so convincing that even after Telegram and others began to issue warnings, they were still able to recruit potential investors. Most use a secure connection, require registration and generate a unique online wallet for each new victim, making it harder to track the money.

Judging by the content of the fake websites, it appears they may have common ownership. For example, several have the exactly the same ‘Our Team’ section.

“ICOs are a fairly risky investment and many people don’t yet fully understand how they work, so it is not surprising that high quality fake websites, with seemingly reassuring features such as a secure connection and registration are successful at luring people in. People wishing to invest in an ICO would do well to check with the company behind it and make sure they know exactly who they are giving their money to, or they may never see it again,” said Nadezhda Demidova, Lead Web-Content Analyst, Kaspersky Lab.

Kaspersky Lab offers the following advice for users considering investing in an ICO:

  • Check for warning signs: for example, some of the fake Telegram ICO websites had the same wrong image next to the name of Telegram’s Chief Product Officer.
  • Do your homework: always check with the brand’s official site to verify the legitimacy of the investment site and, if necessary contact the company’s ICO teams before investing any money or currency.
  • Use reliable security solutions such as Kaspersky Internet Security and Kaspersky Internet Security for Android, which will warn you if you try to visit fake internet pages.

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