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Smartphone sales decline in Africa

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Africa’s smartphone market experienced a quarter-on-quarter (QoQ) decline of 6.4% during Q4 2017, according to the latest insights announced today by International Data Corporation (IDC).

The global technology research and consulting firm’s Quarterly Mobile Phone Tracker shows smartphone shipments were down to 20.3 million units for the quarter. Year on year (YoY), this represents an 18.0% decline, meaning the YoY improvement seen in the previous quarter did not extend to the year’s final – and traditionally strongest – quarter.

In the feature phone space, shipments totaled 33.4 million units, up 3.1% QoQ after decreasing in the previous quarter. Year on year, the feature phone market was up 9.9%. Feature phones continue to account for a majority share (62.2%) of the region’s overall mobile phone market as they adequately address the needs of consumers that have limited purchasing power and require a reliable long-lasting mode of communication, particularly in rural areas.

Combining smartphones and feature phones together, the overall Africa mobile phone market saw shipments of 53.7 million units in Q4 2017, which represents downturns of 0.7% QoQ and 2.6% YoY. The continent’s two biggest markets saw extremely strong growth, with shipments up 19.9% QoQ in Nigeria and 27.0% QoQ in South Africa. North Africa also experienced a slight increase, although there were declines across most other markets, which explains the region’s overall decline.

“Major campaigns took place around Black Friday and during the lead up to Christmas, which positively impacted consumer spending in Nigeria and South Africa,” says Ramazan Yavuz, a research manager at IDC. “While Nigeria continues to recover from recession and consumer spending is on the rise, there are also clear signs of improvement in South Africa. The end to the political crisis means that challenging economic conditions will be addressed as a priority by the new government, which will have a positive effect on consumer confidence and spending on mobile phones.”

In terms of the vendor landscape, Transsion brands continued to lead the smartphone category in Q4 2017 with 30.4% share, followed closely by Samsung on 27.0%. “The Transsion Group maintains its top position by designing attractively priced devices that address the specific needs of each local market – a strategy the group proudly refers to as its ‘glocal’ approach,” says Nabila Popal, a senior research manager at IDC. “Despite the significant presence of Transsion brands in most African markets, it is important to note the increasing prevalence of local brands that are gaining considerable share in their home markets and slowly expanding to surrounding countries.” In the feature phone space, Tecno and itel – both of which are Transsion brands – continued to dominate in Q4 2017 with a combined share of 57.2%.

IDC’s research shows that 4G phones are growing in popularity, finally accounting for a majority share of the smartphone market at 56.8%. Shipments of 4G devices were up 3.9% QoQ in Q4 2017, with a drop in prices for entry-level 4G phones and an increase in the number of 4G networks across the continent driving this growth. “Despite the push of operators towards 4G, the price differential between 3G and 4G devices together with the price sensitivity of African consumers means that many people in Africa still prefer 3G phones,” says Popal.

Looking ahead, IDC expects Africa’s overall mobile phone market to grow 0.7% QoQ in Q1 2018, with overall shipments to increase slightly through 2018, leading to YoY growth of 2.0% for the year as a whole. Demand for feature phones is expected to remain strong, although IDC expects vendors to drive smartphone uptake by offering more features in affordable price bands.

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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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