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Mobicel is changing the mobile game

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It’s a South African brand that is little known in higher income segments, but Mobicel is about to break out of the entry-level mould, writes ARTHUR GOLDSTUCK.

South Africa has a long history of unknown mobile brands that start off catering for entry-level phone users, briefly threaten to challenge the big names, and then fizzle out like a fading signal from a derelict cellular mast.

Barely a year ago, for example, AG Mobile was the big story in local branding. It had sold millions of feature phones and low-cost smartphones, through mass-market retail chains like Jet and Pep. It was designed locally, manufactured in China, imported, and packaged for local tastes. It was a decade-long success story.

But then it overreached, produced a series of phones aimed at both low and middle-income segments, all the way up to mid-range smartphones. Not only that, but it flooded the market with handsets in the hope of replicating its success at the low end.

Overnight, the business collapsed as sales failed to keep up with the heady pace of imports. In a matter of days, the brand vanished from the shelves.

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Meanwhile, a second South African brand had been replicating AG’s success at the entry level. The decade-old Mobicel catered for every budget, if that budget was below R500 to buy the phone outright. At the top end of the market, where that amount and more is spent every single month on contracts, Mobicel was completely unknown.

Soon, that may change. Mobicel is about to venture on the path treaded by AG Mobile when it ventured outside its comfort zone.

There is one fundamental difference, however, said founder and CEO Ridhwan Khan: not only are quantities being carefully managed, but Mobicel is not committing itself to manufacturing capacity that cannot be covered by existing resources, and it is hitting the market with what it calls premium phones, at reasonable prices.

Mobicel founder and CEO Ridhwan Khan

Mobicel founder and CEO Ridhwan Khan

The Mobicel R9 and R9 Plus, launched last week, are rare examples of devices that really can change the mobile game.

The R9 Plus is an Android phone that sports not only a 5.7-inch touch screen, but also edge-to-edge display. Samsung has pioneered the concept with its flagship phones for a number of years, with Apple following suit in its latest iPhones this year. Only LG, with its Q6 released a few months ago, had introduced edge-to-edge screens in a mid-market phone.

So is this a mid-market phone? Perhaps a new category is needed. In a sense, Mobicel is following the lead of Chinese brand Xiaomi, which markets its mid-range smartphones as “high value, affordable devices”. But, at a price of R2 999, the Mobicel R9 Plus probably represents the best value-for-money yet in terms of features versus cost.

The truly remarkable feature of the phone, which does not appear to have been adopted by any other major manufacturer, is that it has flipped the traditional approach of having a premium camera on the rear of the phone and a lower-quality lens on the front for selfies.

With the R9 Plus, the selfie takes pride of place, with a dual front camera. One lens comes in at 20 Megapixels and the other at 8 MP. Mobicel describes it as the “Super Selfie” dual lens camera. It also offers a 120 degree wide angle view, along with “Super Low Light capability”.  And, like most mid- to –high-end phones, it sports a fingerprint sensor.

The slightly stripped down sibling of the Plus, the R9 Lite, will come to market at just under R2000. Both offer a 24-month warranty.

“We’ve created a handset with exceptional build quality, offering the latest technology, and the kind of features only ever before seen on handsets that cost four times as much,” said Kahn.

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Mobicel founder and CEO Ridhwan Khan

“We’ve used our experience, our understanding of the customer base and our economies of scale to offer them an opportunity to migrate from whatever device they’re using to our premium smartphone.”

Mobicel’s stratetic advantage is that it distributes through more than four thousand retail outlets, ranging from the smallest store to large discount chains. It will begin selling the new devices from the beginning of next month, both through retailers and online via Takealot.com.

“There is a big void between phones like the Vodafone Smart Kicka at R399, and the feature-rich smartphones from Samsung and Huawei,” Kahn said in an interview after the launch.

“No one’s filling that massive gap, almost indoctrinating consumers to the idea that if you really want a nice device you have to pay R6000 upward. There’s a massive opportunity. If we can play in the space between R1 500 and R3 000, we will start filling the void.

“Our biggest challenge is making the user experience an awesome one so that when people buy and use the device, whatever reservations they had about the price point is gone. We want people to experience the brand, so we are keeping margins very thin, and a big part of our margin is being put into building a local brand.”

This is uncharted territory for a businessman who entered the cellphone industry in 2002 by bringing in refurbished handsets from the United Kingdom. He would clean them up, and sell them as demo units. By  2007, demand had exceeded supply, and he realised there was a massive market waiting for him.

The first Mobicel handset, back in 2007, was the M404, a1.8-inch dual-SIM feature phone. That’s the year Apple launched the iPhone and sparked the smartphone revolution. It’s taken a decade for Mobicel to break out of the feature phone market, and now it wants to spark an equivalent revolution in the South African mass market.

Said Kahn, “The end game is to provide powerful smartphones without the hefty price tag.”

  • Arthur Goldstuck is founder of World Wide Worx and editor-in-chief of Gadget.co.za. Follow him on Twitter on @art2gee and on YouTube.
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Welcome to world of 2099

The world of 2099 will be unrecognisable from the world of today, but it can be predicted, says one visionary. ARTHUR GOLDSTUCK met him in Singapore.

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Futuristic structures tower over the landscape. Giant, alien-looking trees light up with dazzling colours amid the hundreds of plant species that grow up their trunks. Cosmetic stores sell their wares via public touch-screens, with products delivered instantly in drawers below the screens.

This is not a vision of the future. It is a sample of Singapore today. But it is also an inkling of the world we may all experience in the future.

Singapore was the venue, last week, of the World Cities Summit, where engineers, politicians, investors and visionaries rubbed shoulders as they talked about the strategies and policies that would enhance urban living in the future.

As part of the Summit, global payment technologies leader Mastercard hosted a small media briefing by one of Singapore’s leading thinkers about the future, Dr Damian Tan, managing director of Vickers Venture Partners. The company’s slogan “We invest in the extraordinary,” offers a small clue to Tan’s perspective.

“We look as far forward as 2099 because, as a venture capital firm, we invest in the long term,” he tells a group of journalists from Africa and the Middle East. “Companies explode in growth because there is value in the future. If there is no growth, they won’t explode.”

The big question that the Smart Cities Summit and Mastercard are trying to help answer is, what will cities look like in the year 2099? Tan can’t give an exact answer, but he offers a framework that helps one approach the question.

“If you want to look at 81 years into the future, and understand the change that will come, you need to double that amount and look into the past. That takes us to 1856. The difference between then and now is the difference you can expect between now and 2099.”

Click here or on the page link below to read on: Page 2: Soldiers and Health in 2099.

  •    Arthur Goldstuck is founder of World Wide Worx and editor-in-chief of Gadget.co.za. Follow him on Twitter on @art2gee and on YouTube

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Street art goes electric

Kaspersky Lab and British street artist D*Face have unveiled the first-ever “art helmet” design at the Formula E finale for electric cars in New York.

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The ‘Save The World’ helmets will be raced by DS Virgin Racing’s drivers, Sam Bird and Alex Lynn, as they traverse the New York street circuit during the final races of the Formula E season.

The announcement signals the first art helmet by a Formula E team, continuing the heritage of art in motorsport and the cybersecurity brand’s commitment to contemporary art, creativity and innovation. D*Face took inspiration from Kaspersky Lab’s tagline, “A Company To Save The World”, and hopes that his colourful work will inspire people to take positive action.

D*Face will announce his first-ever art car design with a custom-made livery for the DS Virgin Racing Team. Its design will be released at the “Art Goes Green” event after Saturday’s race. The helmets and art car are the latest installations in the “Save the World” collection, following a major permanent public mural that was installed in Brooklyn, New York, in May.

D*Face, whose real name is Dean Stockton, said: “It is exciting to work with Kaspersky Lab on this project and create art with a real message of hope for a better future. After all, this is our world and we need to look after it. It will take every one of us to make a real lasting, impactful change. I love the mentality of the DS Virgin Racing Team and that of Formula E by showcasing sport in a way that doesn’t harm the environment, but is still just as exhilarating and fun.

“It is time for us all to stand together and make a change… be that stopping data steals, climate change, plastic waste or using damaging fuels. I want everyone to make a pledge to do one thing that will help make a change.”

As a sponsor of DS Virgin Racing Team, Kaspersky Lab is responsible for protecting the team’s devices against cyber threats. The company sees the technical environment in the global sport of Formula E as the next frontier in furthering its research and development of new technologies to keep vehicles secure in the digital world.

Sylvain Filippi, Managing Director at DS Virgin Racing, said: “The whole team fully supports this great initiative and our thanks got to Kaspersky and D*Face for their collaboration. It’s an honour to have such an innovative artist bring his talents to bear in our team ahead of the season-finale; the car, drivers’ crash helmets and mural all look amazing.”

Aldo Fucelli Pessot del Bo, Head of Global Partnerships and Sponsorships at Kaspersky Lab added: “There is a need for innovation on a global scale, both in contemporary art and in the fast-growing sport of Formula E. Now, for the first time ever, Kaspersky Lab is proudly bringing together the two sectors in an effort to Save the World and unleash creativity, encourage freedom of expression and further innovation.”

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