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GDP, dollar, crush PC in Africa

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The African PC market sank to new lows in the second quarter of the year amid a slowdown in GDP growth, increasing unemployment, and the strengthening of the dollar against many of the continent’s currencies.

Figures released by International Data Corporation (IDC) show that the market followed up its first-quarter decline of 11.8% with a 26.7% year-on-year downturn in shipments during Q2 2015, the largest slump the market has ever suffered. While IDC believes that the PC market will continue on its downward trajectory into Q3 2015, growth is expected to pick up from the last quarter onward.

“Kenya suffered the continent’s biggest fall of the quarter, with shipments to the country down 54.5% year on year, with Ghana and Algeria following with declines of 40.9% and 40.2%, respectively,” says Joseph Hlongwane, a research analyst at IDC Sub-Saharan Africa. “The significant decrease in PC demand seen in Kenya can attributed to sluggish economic growth brought about by falling exports and a declining production sector that is characterized by slow job creation. The poor performances of the markets in Ghana and Algeria were also caused by a slowdown in economic growth arising from severe energy constraints and unsustainable levels of domestic and external debt.”

South Africa remains the biggest PC market on the continent, accounting for 35.5% of total shipments, but the country followed up its 4.2% year-on-year decline in Q1 2015 with a decrease of 12.8% in Q2 2015. This was largely due to continuing cannibalization of the market by smartphones and tablets as well as shrinking consumer disposable incomes due to the rising prices of necessities such as petrol and food. South Africa’s PC market is expected to continue declining since the current economic challenges are set to remain throughout 2015.

Neighbouring Botswana performed better than expected to post the highest year-on-year growth rate across the whole continent. This growth follows the successful democratic elections that took place in the country in October 2014 and was driven primarily by the commercial sector, which accounted for 87.6% of the total market. Botswana is expected to see ongoing year-on-year growth in the final two quarters of the year.

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Huge appetite for foldable phones – when prices fall

Samsung, Huawei and Motorola have all shown their cards, but consumers are concerned about durability, size, and enhanced use cases, according to Strategy Analytics

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Foldable devices are a long-awaited disrupter in the smartphone market, exciting leading-edge early adopters keen for a bold new type of device. But the acceptance of foldable devices by mainstream segments will depend on the extent to which the current barriers to adoption are addressed.

Major brands have been throwing their foldable bets into the hat to see what the market wants from a foldable, namely how big the screens should be and how the devices should fold. Samsung and Huawei have both designed devices that unfold from smartphones to tablets, each with their own method of how the devices go about folding. Motorola has recently designed a smartphone that folds in half, and it resembles a flip phone.

Assessing consumer desire for foldable smartphones, a new report from the User Experience Strategies group at Strategy Analytics has found that the perceived value of the foldable form does not outweigh the added cost.

Key report findings include:

  • The idea of having a larger-displayed smartphone in a portable size is perceived as valuable to the vast majority of consumers in the UK and the US. But, willingness to pay extra for a foldable device does not align with the desire to purchase one. Manufacturers must understand that there will be low sell-through until costs come down.
  • But as the acceptance for traditional smartphone display sizes continues to increase, so does the imposed friction of trying to use them one-handed. Unless a foldable phone has a wider folded state, entering text when closed is too cumbersome, forcing users to utilize two hands to enter text, when in the opened state.
  • Use cases need to be adequately demonstrated for consumers to fully understand and appreciate the potential for a foldable phone, though their priorities seemed fixed on promoting ‘two devices in one’ equaling a better video viewing experience. Identification and promotion of meaningful new use cases will be vital to success.

Christopher Dodge, Associate Director, UXIP and report author said: “As multitasking will look to be a core selling point for foldable phones, it is imperative that the execution be simplified and intuitive. Our data suggests there are a lot of uncertainties that come with foldable phone ownership, stemming mainly from concerns with durability and size, in addition to concerns over enhanced use cases.

“But our data also shows that when the consumers are able to use a foldable phone in hand, there is a solid reduction of doubt and concern about the concept. This means that the in-store experience may more important than ever in driving awareness, capabilities, and potential use cases.”

Said Paul Brown, Director, UXIP: “The big question is whether the perceived value will outweigh the added cost; and the initial response from consumers is ‘no.’ The ability for foldable displays to resolve real consumer pain-points is, in our view critical to whether these devices will become a niche segment of the smartphone market or the dominant form-factor of the future. Until costs come down, these devices will not take off.”

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Huawei puts $1-bn into local developer programme

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Huawei Mobile Services (HMS) South Africa has announced the launch of a local Developer Programme called Shining-Star. Huawei announced an investment of $1-billion in support of this programme across global markets, of which South Africa forms part.

‘‘HMS already has more than 570 million global users, including more than 15 million in Africa, with our business covering more than 170 countries,’’ says Likun Zhao, vice president of Huawei Consumer Business Group for Middle East and Africa. “We provide a trusted, device-centric and inter-connected eco-system that improves the user experience, helping them to discover quality content while ensuring security and privacy.”

The developer programme, announced at AfricaCom in Cape Town last week, is the first of its kind in South Africa. Huawei says it “will provide an encompassing eco-system that aims to encourage local developer innovation and support, while Huawei’s AppGallery provides a platform for developers to showcase and publish their apps”.

The platform offers open e-point access and intelligent global distribution for all apps, ranging from smart home, gaming and music to education and health-related apps.

The Shining-Star Programme has been successfully implemented in Malaysia, which has the highest number of Huawei users relative to other smartphone brands in this country. Like Malaysia, South Africa has a considerable number of Huawei users.

Shining-Star will focus on assisting local app developers who face challenges like lack of funding for app eco-systems, testing, and monetisation of their apps. South African developers particularly struggle to market their games and find investors.

“We are committed to working on empowering local app developers by offering them some much-needed infrastructure, guidance, skills and support to grow local talent,” said Zhao. “Our focus is to provide an open platform for developers that they can use to launch and market their apps, as well as give them extensive support in the form of technical development, testing, and legal and marketing tools.”

Huawei HMS Core is a hub with tools like the Account Kit, which enables users to access developers’ apps using Huawei IDs; Game Service, which enables game development; Location Kit, which provides developers with hybrid locations; Drive Kit, a data storage and management solution; and Map Kit, which offers customisation of map formats to developers.

In addition to these developer-specific tools, the Huawei HMS Core hub has growth enablers like the Push Kit and an Analytics Kit, which enable, respectively, the sending of messages and analysis of user behaviour. An Ad Kit and In-App Purchases Kit are also available, so developers can earn income from their apps. Key resources such as API reference, development guides and sample code assist are also part of the programme.

At present, more than 50,000 apps are connected to HMS Core worldwide.

* App developers with a completed app can visit https://developer.huawei.com/consumer/en/, or contact the Huawei SA Business Development team on developersa@huawei.com to find out how Huawei can support them.

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