BUSINESS AM FIRST EDITION, FEB 2018

More documents

Recommendations

Info

22 BUSINESS A.M. FEBRUARY, MONDAY 05 - SUNDAY 11, 2018 Tech giants under scrutiny as regulators tighten noose Tiamiyu Adio, with agency SOME OF THE WORLD’S biggest technology companies are facing off with regulators in what’s being called a “tech lash”. As society struggles to catch up with the pace of technological change, governments around the world are waking up to the fact that our Internet economy and how it operates is unaccountable and undertaxed. The European Union is reviewing Google for allegedly abusing its dominant market position in search. Germany is already investigating how Facebook profits from user data. The US is looking at whether Apple broke laws with software updates which slowed older iPhones. And Congress is holding more hearings on the use of social media platforms to allegedly disrupt US elections. Even so, with the increased scrutiny over disinformation, fake news and malicious actors buying ads, the internet companies could still find themselves hit by regulation sparked by the big tech backlash. Consumers, too, are asking if things like smartphones, designed to keep us online for longer are just making companies richer at the expense of children’s mental health. “Since the Russia meddling and fake news, you’re seeing a lot more heat on Facebook, Twitter and Alphabet - not just on Capitol Hill, but the EU and abroad,” says Daniel Ives, chief investment officer at GBH Insights. Samsung squares up to Bitmain in cryptocurrency chip mining Business a.m with agency SAMSUNG’S FORAY into the crypto-mining space will pose serious competition to the existing leader in the industry, Beijingbased Bitmain, which claims to supply 70 percent of the world’s bitcoin applicationspecific integrated circuits (ASICs), according to analysts. Bitmain is also said to control around 30 percent of all the processing power of the global bitcoin network through the two mining pools it operates, for which it may have to relinquish some share when Samsung fully enters the market. TECHNOLOGY&INNOVATION The Korean tech giant announced late last week that it has started mass producing chips designed for cryptocurrency mining, known as ASICs. While reporting its fourthquarter revenue, which came in at 66 trillion won ($61 billion), a 24 percent increase year-on-year, the company said in the first quarter of 2018, earnings are expected to rise on the ramp-up of second generation 10mm process products for this year’s flagship smartphones and growing demand for cryptocurrency mining chips. The statement thus confirmed previous reports that Samsung has entered the Facebook has recently changed its news feed algorithm to reflect communication from friends and family, as opposed to news outlets, and Ives believes “they’re definitely in the crosshairs of legislatures. And I think you’re seeing Twitter, Alpha, and Youtube be a lot more strict and a lot more focused on some of the content that’s coming through as we’re seeing the double-edged sword of social media.” European regulators aren’t shy against tech giants, explains Ives. “There’s a boxing match between Silicon Valley and the EU that’s getting more intense. Part of the focus has been on Apple and Microsoft, but now you’re seeing stricter potential for regulatory oversight. I think part of it is, these companies need to play nice in the sandbox. They need to have an olive branch to the crypto-mining sector. Earlier last week, Korean news outlet, the Bell, reported that the company would produce ASICs in its own foundry in a deal with Taiwanese chipmaker, TSMC. Later, a Samsung spokesperson confirmed with Tech- Crunch that the company is “currently engaged in the manufacturing of cryptocurrency mining chips,” but refused to provide more details. Bitmain also contracts with TSMC to produce customized silicon. In the third quarter of 2017, the Taiwanese chipmaker received $350 million to $400 million in revenue from crypto miners. One advantage Samsung might have over Bitmain, as some note, is that the Korean giant operates one of the world’s largest semiconductor EU. You’ve seen that with Facebook and their change to the tax code and what they’ve done in Ireland.” According to Ives, “these companies, at this point, basically own the consumer kingdom...I don’t think their core business model will change, but ... transparency and a lot more oversight around content” could be one example in extending the olive branch. “Facebook said they’re going to stop crypto advertising and bitcoin advertising, so they said if this could be an issue [for the EU] then they’re going to take it off.” UK-China relations: Britain’s Prime Minister Theresa May has been in China this week to boost trade between the two nations as the UK looks to forge new partnerships for when it leaves the EU. But China will want to see what a final Brexit deal looks like before making any big commitments. There’s a great deal at stake for both countries, as Adrian Brown reports from Beijing. In Germany, opposition MPs are demanding answers from the government about a scandal involving well-known carmakers and diesel fume tests. A research group funded by BMW, Daimler and Volkswagen reportedly exposed volunteers and monkeys to toxic exhaust gasses. VW’s suspended one of its senior executives following the public outcry about the secret tests, as Dominic Kane reports from Berlin. Panama has its famous canal, the Suez canal cuts through Egypt, and now there’s a plan to resurrect a 400-year-old plan for a sea link in the south of Thailand. The waterway would link the Indian Ocean and Andaman Sea, with the Gulf of Thailand and the South China Sea. Wayne Hay reports from Si Kao, which is home to a coastal community. Myanmar’s economic prospects with the West are at risk, after mounting international criticism over its handling of the Rohingya crisis, as Scott Heidler reports from Yangon. Recently, a top US diplomat quit the government’s advisory panel after a heated exchange with Myanmar’s leader Aung San Suu Kyi. Bill Richardson’s departure shows how Aung San Suu Kyi appears to be pushing away critics - and relying on old allies for support. Scientists in the West have long disputed the therapeutic value of traditional Chinese medicine, but it seems the ancient craft is gaining popularity at home and abroad. It’s even been hailed by Xi Jinping’s government as “the gem of Chinese science”. Rob McBride reports from the country’s biggest traditional medicine market in the city of Bozhou, where business has never been better. plants, capable of matching orders of any size. Bitmain has in the past put its models for sale in intermittent batches in order to keep vendors from placing large orders. In its fourth-quarter earnings report mid-last week, the consumer-electronics purveyor and world’s largest chipmaker by revenue said it expects its foundry business to get a bump-up from “growing demand for cryptocurrency mining chips.” Mining for cryptocurrencies like Bitcoin means putting your computer to work solving thorny math problems that are used to verify cryptocurrency transactions. In return for your gobs Apple iOS 11.3 upgrade release exposes new product secret Tiamiyu Adio IN ROLLING OUT its first iOS 11.3 public beta, Apple has unwittingly again given away product secrets. Analysts say after digging through the code, 9to5Mac, they found it is filled with references to a brand new ‘modern iPad’, a name, which according to them reveals a lot. They said prior to release of iPhone X, Apple’s reference for it was ‘modern iPhone’. So the terminology is a clear distinction between it and what came before. And of course what the iPhone X brought to the table as ‘modern’ differentiators was a near bezel-less display without a home button and Face ID in place of Touch ID. Consequently a ‘modern iPad’ strongly suggests the same steps: goodbye home button, goodbye chunky bezels and hello facial recognition. Furthermore, this move is said to have precedent. Acclaimed Apple analyst, Ming-Chi Kuo, stated back in October that Apple will release overhauled versions of the iPad Pro during 2018. And it is easy to see how a more compact design and integrated 3D facial modeling could prove very popular editions, given their target market. The downside, according to the analysts, is that ‘modern’ will not mean the new iPad Pros would get dual cameras since the iPhone 7 Plus and iPhone 8 Plus both have dual cameras, so this clearly isn’t a prerequisite of ‘modern’ status. “My guess is the camera from the iPhone 8, and the inclusion of 3D Touch is surely long overdue for such productivity-focused devices,” an analyst noted. “So while iOS 11.3 does have more immediate fires to put out, it’s interesting to see one essential update has accidentally exposed another,” he added. of processing power, you can be rewarded with coins. And with some cryptocurrencies worth thousands of dollars per coin, and huge hype around the phenomenon, it’s no surprise a rush of gold diggers are pumping up their computer systems with high-powered chips to get in on the act. In fact, despite a dip in the value of Bitcoin, things have gotten so frenzied that computer gamers who want to make home-brew systems for playing Call of Duty (or whatever) are having a tough time getting hold of graphics cards. It seems the cards have turned out to be great for mining cryptocurrencies like Ethereum.
Zinox set to reposition e-commerce in Nigeria, acquires Konga for leverage Tiamiyu Adio BUSINESS A.M. FEBRUARY, MONDAY 05 - SUNDAY 11, 2018 Zinox Group, an integrated information communication technology (ICT) solutions conglomerate and original equipment manufacturer (OEM), has concluded the acquisition of e-commerce giant, Konga in a move that is expected to raise the profile of e-commerce in the country, Leo Stan Ekeh, chairman of Zin ox Group has confirmed to Business.a.m Ekeh who spoke top Business.a.m said the transaction has been approved by the Securities and Exchange Commission (SEC). Analysts say the acquisition is a major development that could see e- commerce in Nigeria finally unlock the massive revenue potential in the global multi-billion-dollar industry. The move is also expected to see Zinox make a bold return to an industry it pioneered in Nigeria with the launch of BuyRight Africa.com which was challenged by the absence of credit card and e-payment infrastructure when it was launched over 12 years ago. Details of the deal include Zinox Group, one of Africa’s biggest technology group assuming ownership of the e-commerce platform, Konga. com which remains as one of the biggest players in the sector. This development, coming at a time when global e-commerce spending is expected to top previously unheralded levels, is widely expected to reposition Konga for a greater share of the e-commerce purse in Nigeria and beyond. Also some industry analysts estimated that the acquisition could lead to the integration of Konga and Yudala, which is owned by Ekeh’s son, to wade off competition and make it one of biggest e-commerce companies in Africa. In 2017, retail e-commerce sales worldwide amounted to $2.829 trillion while e-retail revenues are projected to grow to $4.48 trillion by 2021. Ekeh explained that the acquisition was expected to create employment opportunities for over 750 Nigerians, both at home and in the Diaspora, saying that many erstwhile employees of the company laid off in the restructuring process may be recalled. Konga recently announced a shift to a prepay-only model, essentially putting a stop to Pay on Delivery (PoD) – a significant decision which formed part of an internal restructuring aimed at putting the business on a sound footing in the market. This move, coupled with the new investment, were expected to spark an up-turn in the company’s fortunes which will see Konga assume a more significant share of the e-commerce market. Led by serial digital entrepreneur, Ekeh, the Zinox Group has grown from a position of strength to become one of the biggest names on the African technology scene. With its headquarters in Lagos, Nigeria and branches all over the country in addition to hubs in Africa, Asia, Europe and the Middle East; the Zinox Group boasts a 360-degree spectrum orientation as an integrated ICT solutions group with advanced competencies in manufacturing, distribution, retail and after-sales support, among others. TECHNOLOGY&INNOVATION 23 U.S House enact bill to enable consumers set up account without visiting bank branch Tiamiyu Adio THE UNITED STATES House of Representatives recently passed a bill (HR 1457) that would enable financial institutions accept personal identification, such as scan of a drivers license, to open up on bank account on a mobile device or computer. “The financial institution may use the information for the purpose of verifying the authenticity of the driver’s license or identification card, verifying the identity of the individual, or complying with legal requirements,” the bill said. The bill passed with broad bipartisan support and has now been moved over to the Senate for further discussion. The fact that legislation is required to authorize some banks to accept a digital process for opening an account is indicative of the fact that bank branches may quickly become extinct. Soon enough, bank branches will experience the same fate of the Blockbuster entertainment outlets that once littered strip malls across the US. The legislation also highlights the disparate regulations that exist in the 50 different states – a fact that is an impediment to more rapid innovation. While allowing for ID scans to be accepted should make it simpler for some individuals in opening accounts it is probably just a temporary measure until Blockchain based ID verification takes over – globally. Lenovo mobile unit drags business as group posts quarterly loss of $289m CHINESE PERSONAL-COM- PUTER maker Lenovo Group is struggling with its mobile business unit as it reported a net loss of $289 million for its fiscal third quarter, after taking a write-off of $400 million resulting from the recent US tax reform. The company has struggled in recent times to turn around its loss-making mobile unit amid tough global competition and slowing market growth. Lenovo swallowed a one-time charge of roughly $400m as a result of the Trump administration’s tax overhaul, though it said the reforms may result in a lower tax rate for its U.S. operations in the longer term. Shares of Lenovo closed up 2.4 percent lower to HK$4.39 last Thursday. Lenovo, a unit of Legend Holdings, reported a loss of $289 million for the three months to December, versus a $98 million profit a year ago. CEO Yang Yuanqing stated they will further improve the profitability in their mobile division, but probably breakeven will not happen in the second half, with more time needed to turn around a unit that has yet to generate income from its purchase of Motorola Mobility. Lenovo aims to expand, rather than shrink, its geographical reach and product lines. Yuanqing said that it was well on track to deliver a turnaround, but did not specify a time frame. “We will definitely stay in these markets”. The mobile business was expected to post revenue growth based on seasonal demand and efforts by Lenovo to push more mid-priced to high-end smartphone models, according to Daiwa Capital Markets analyst, Steven Tseng, in a recent report. Compared to the third quarter previous year, revenue was up six percent, operating and pre-tax profit was up 48 percent, and net profit fell by negative 425 percent. The company went on a shopping spree four years ago, spending almost $3 billion to acquire USA mobile-phone maker Motorola Mobility in 2014, which Lenovo hoped would help it expand in the US smartphone market. The mobile business is part of Lenovo’s efforts to diversify from its core PC business, but it has yet to bear fruit. Wong Wai-ming, the chief financial officer at Lenovo, said on a media conference call last week that the company has not considered a write-off of the mobile business even though it performed below expectations in the past quarter. Hewlett- Packard has overtaken Lenovo as the world’s No. 1 PC maker, said International Data Corp. By division, the PC group saw revenue grow 9 percent year on year to $9.3 billion, and was profitable for the second straight quarter in all geographies, contributing $416 million in pre-tax profit overall
Page 1 and 2: Nigeria’s Financial & Business Ne
Page 3 and 4: BUSINESS A.M. FEBRUARY, MONDAY 05 -
Page 9 and 10: EXECUTIVE KNOWLEDGE SERIES BUSINESS
Page 17 and 18: Q&A BUSINESS A.M. FEBRUARY, MONDAY
Page 21: BUSINESS A.M. FEBRUARY, MONDAY 05 -

BUSINESS AM FIRST EDITION, FEB 2018

Create successful ePaper yourself

Delete template?

Save as template?