It seems that every new high-end mobile phone is powered by a Qualcomm chip, but there’s a new name in town, writes ARTHUR GOLDSTUCK.
The typical cellphone user doesn’t care who makes the insides of that cool new handset, but it’s a major selling point for manufacturers and resellers. For several years, it was a badge of quality to claim a Qualcomm processor as the heartbeat of the device.
Now the San Diego-based chipmaker is facing growing competition from the other side of the world.
MediaTek, headquartered in Taiwan, has quietly risen to number three in the world, with 2016 revenue of around US$8.6-billion. That’s still less than half of Qualcomm’s $23.5-billion, and some way behind number two, Broadcom Limited, at $13.2-billion. But, for a brand that has been primarily known as a chip supplier for cheap feature phones, its rise should send warning signals to the market leaders.
It also powers some of the best-selling entry-level smartphones in the world, and is beginning to rise up the value chain.
“We consider ourselves number one in the world in feature phones, so that’s still a very strong focus of the business,” says Dominique Friedl. “In smartphones, our biggest strength exists in the entry smartphones, from the Vodacom Smart Kicka, and other 3.5-inch display smartphones, pushing all the way up into the mid-tier smartphones, like the Sony Xperia XA, Samsung Galaxy Grand Prime Plus, and brands like TECNO, Infinix and Itel.”
The latter three are all owned by Transsion Holdings, which has become one of the most successful smartphone businesses in West and East Africa, and is slowly entering the South African market.
“Each of its brands is positioned to serve a particular segment of the market, with Infinix at the top, TECNO in the middle, and Itel as the entry-level brand,” says Friedl. “All use MediaTek.”
He points out that South Africa is very different to the rest of Sub-Saharan Africa, where retailers dominate cellphone sales, whereas this country’s market is driven by operators. That makes it more difficult for new brands to enter the market, unless they are able to build a good relationship with operators.
Nevertheless, home-grown brands Mint and Mobicel, Latin American entrant Azumi, and Transsion are all making inroads into the South African market.
“It’s quite a rainbow nation of brands that MediaTek supports. Our strength was traditionally in the Chinese market, and then supporting regional brands.”
In South Africa, it is already a dominant player. With some estimates putting annual smartphone sales as high as 16-million, MediaTek has a market share of
about 45%, or just under 8-million. For the entire Sub-Saharan Africa, it is forecasting 120-million smartphones, and 100-million feature phones.
“South Africa and Nigeria remain the two biggest markets,” says Friedl. “Growing rapidly behind them, we see the East Africa countries, Kenya, Tanzania, Uganda, and now also Ethiopia. That’s a unique market because it has one mobile network, which drives the market in a specific direction.”
The ability to address the opportunities as well as the complexities of global markets has grown MediaTek to 15 000 people globally, and more than 30 global offices. It has grown turnover between 20 and 30 percent a year for the past few years, almost doubling revenue in three years.
Yet, this may be just the beginning. As more and more consumers decide that mid-range phones meet their needs just as well as expensive flagship devices, a new category is emerging, says Friedl.
“We’re starting to see the New Premium. You saw a decline in flagship phone sales in 2016 as people started questioning the diminishing returns of upgrades. The result is the trend towards the New Premium tier.
“It’s really by demand from customers and what their expectations are of phones. They want quality technology, performance, and power, all the things that were flagship features, but they want them now in mid-tier devices. That’s where the exciting stuff will happen in the next two years.”
The result is that the features that are currently associated with top-of-the-range smartphones, like dual cameras, edge to edge display, and fingerprint and biometric sensing, will arrive in mid-tier phones in the next year or so.
“You can equate it to Formula 1 racing, where advanced technology is developed in Formula 1 cars and then finds its way into commercial vehicles down the line. That’s the trend in 2017 and 2018 in smartphones.”
How we use phones to avoid human contact
A recent study by Kaspersky Lab has found that 75% of people pick up their connected device to avoid conversing with another human being.
Connected devices are becoming essential to keeping people in contact with each other, but for many they are also a much-needed comfort blanket in a variety of social situations when they do not want to interact with others. A recent survey from Kaspersky Lab has confirmed this trend in behaviour after three-quarters of people (75%) admitted they use a device to pretend to be busy when they don’t want to talk to someone else, showing the importance of keeping connected devices protected under all circumstances.
Imagine you’ve arrived at a bar and you’re waiting for your date. The bar is busy, and people are chatting all around you. What do you do now? Strike up a conversation with someone you don’t know? Grab your phone from your pocket or handbag until your date arrives to keep yourself busy? Why talk to humans or even make eye-contact with someone else when you can stare at your connected device instead?
The truth is, our use of devices is making it much easier to avoid small talk or even be polite to those around us, and new Kaspersky Lab research has found that 72% of people use one when they do not know what to do in a social situation. They are also the ‘go-to’ distraction for people even when they aren’t trying to look busy or avoid someone’s eye. 46% of people admit to using a device just to kill time every day and 44% use it as a daily distraction.
In addition to just being a distraction, devices are also a lifeline to those who would rather not talk directly to another person in day-to-day situations, to complete essential tasks. In fact, nearly a third (31%) of people would prefer to carry out tasks such as ordering a taxi or finding directions to where they need to go via a website and an app, because they find it an easier experience than speaking with another person.
Whether they are helping us avoid direct contact or filling a void in our daily lives, our constant reliance on devices has become a cause for panic when they become unusable. A third (34%) of people worry that they will not be able to entertain themselves if they cannot access a connected device. 12% are even concerned that they won’t be able to pretend to be busy if their device is out of action.
Dmitry Aleshin, VP for Product Marketing, Kaspersky Lab said, “The reliance on connected devices is impacting us in more ways than we could have ever expected. There is no doubt that being connected gives us the freedom to make modern life easier, but devices are also vital to help people get through different and difficult social situations. No matter what your ‘connection crutch’ is, it is essential to make sure your device is online and available when you need it most.”
To ensure your device lifeline is always there and in top health – no matter what the reason or situation – Kaspersky Security Cloud keeps your connection safe and secure:
· I want to use my device while waiting for a friend – is it secure to access the bar’s Wi-Fi?
With Kaspersky Security Cloud, devices are protected against network threats, even if the user needs to use insecure public Wi-Fi hotspots. This is done through transferring data via an encrypted channel to ensure personal data safety, so users’ devices are protected on any connection.
· Oh no! I’m bored but my phone’s battery is getting low – what am I going to do?
Users can track their battery level thanks to a countdown of how many minutes are left until their device shuts down in the Kaspersky Security Cloud interface. There is also a wide-range of portable power supplies available to keep device batteries charged while on-the-go.
· I’ve lost my phone! How will I keep myself entertained now?
Should the unthinkable happen and you lose or have your phone stolen, Kaspersky Security Cloud can track and protect your device from data breaches, for complete peace of mind. Remote lock and locate features ensure your device remains secure until you are reunited.
Five key biometric facts
Due to their uniqueness, fingerprints are being used more and more to quickly identify and ensure the security of customers. CLAUDE LANGLEY, Regional Sales Manager, for Africa at HID Global Biometrics, outlines five facts about the technology.
How many times in a day are you expected to identify yourself? From when you arrive at work you are required to sign in, visiting your bank, receiving healthcare services… The list is endless. When a system knows who you are, you are able to do any number common, everyday activities. Your identity is unique and precious. It is also easily stolen and the target of many hackers across the globe. Technology is constantly evolving alongside the criminal element, always looking for ways to protect data and identity. One such solution happens to be biometrics and it is rapidly gaining traction in our increasingly complex modern world.
Reliable, secure and fundamentally YOU, unique biometric traits such as fingerprints are being used by banks, enterprises and consumers to verify identity. Biometric solutions offer significant identity protection because they use unique biological details to ensure an account is only accessed by the account holder, a door only opened by the owner. Here are five things that are little known about this technology…
- The uncut identity. Your fingerprint is unique to you. Nobody can use a copy of it to impersonate you. Good technology is capable of scanning down into the layers of the fingertip to differentiate unique elements of a person’s fingerprint, this data is then encrypted and used as a key to unlocking whichever physical or virtual door that the biometric system protects.
- The living proof. No, there is nothing to the stories of fingerprints being used without their owner’s knowledge or permission. Biometric solutions can use specific variables to determine if the finger used to access the system is that of a present, living person. A copy or a fake cannot be used to access a cutting-edge biometric solution.
- Easy and convenient. Queues and documents and paperwork may well be a thing of the past should biometrics take a firmer grip of government and banking systems. The process of registering is easy, and access to identity documents and records is yours alone.
- Security blanket. A thousand passwords and a hundred post-it notes stuck on walls and drawers. An excel file with a list of sites and applications and their corresponding passwords, all a thing of the past. Nobody needs to remember their password with biometrics, they only need to show up.
- Anywhere is cool. Schools, airports, networks, offices, homes, toilets, banks, libraries, governments, border controls, immigration services, call centres, hospitals and even clubs and pubs – knowing “who” matters and biometrics can quickly and conveniently confirm your identity where needed.