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Tekedia Intelligence Concludes That All Local PC Vendors in Nigeria Could Exit By 2017

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Tekedia Editors
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In 2010, IDC reported thus:

 

The Q2 2010 IDC report posted on the company’s web site reveals that Zinox laptops are the fastest growing and best selling Notebooks in the Nigerian market. Zinox is strongest in the laptop market where it leads six other international brands, including HP, Acer, Toshiba, Dell, Lenovo and LG Electronics, with a 53.6% market share and a year-on-year growth of 799 per cent, while its closest competitor, HP, achieved a 23.6 per cent market share.

 

Yes, Zinox through government projects is doing well. It has found lucks in many of its no-compete bids and riding the wave. But do not be deceived, there is no major product innovation  going on n either Zinox or Omatek. Omatek trades as a junk stock in the Nigerian Stock Exchange and was losing money until it managed to come back in black in the last few quarters.

 

These companies had the best of intentions. They fought and gave this nation hope and identify, but their governments failed them. Nigeria is a dumping ground of PC and electronics. And that is the problem for the local players. How can you compete in a place where one foreigner buys a ticket , enters the nation and within an hour is smiling before compromised journalists that it has introduced a new PC line in Nigeria.

 

Immediately that happens, the market share of the local players are eroded. Zinox does not make much money in PC, it does through government deals like the INEC one. Omatek seems not to know how to get these jobs and by focusing on PC, it is having tough time.

 

As we look into this industry, we see challenges for the local OEMs (original equipment manufacturers)  – there is no benefit in making anything in Nigeria. They will surely collapse without any major intervention by the government. People think that PC is immune to the same conditions that forced Michelin out of making tires in Nigeria. No, the condition is the same. If you look at the business model of Zinox, you will notice that the bulk of its profit does not come from things that are made in Nigeria. The items it supplied INEC for the elections were not made in Nigeria. That business unit of PC that it makes in Nigeria is not a cash cow and that seems shaky right now.

 

Check back for the concluding part of this report.

 

Zinox is Nigeria’s No. 1 Selling Notebook, Says IDC

ISP Business Cools In Nigeria – 21 ISPs Operating With Expired Licenses

By
Tekedia Editors
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One thing has happened since competition went to the high temperature in the ICT sector in Nigeria: many local players went under. For anyone to tell you that business is booming for all the early investors in this sector, that person is not honest. The problem is simple: the ecosystem is difficult and extremely unfriendly.

 

Where do you start? You run a generator. You pay multiple taxes. You get nothing from the government.

 

This  is exactly what is happening in the Internet Service Providers business. They invested millions thinking that the future will be under then. It just the same thing that happened to the cybercafe. Of course we know what happened in the latter. When people began to have their phones as Internet hubs, the model of cybercafe was disrupted.

 

According to Vanguard, there are more than 21 ISPs that have gone under. Why not, these companies have no cybercafe to serve. People are getting the Internet via phones.

 

Already, about 21 Internet Service Providers were said to be operating illegally in the country due to expired licences. The licences granted to them in 2005 were only valid for five years, and many of them became invalid between December 2010 and April 2011. The ISPs currently find it hard to renew their licences.” he pointed out.

 

This calls into question vision and planning. What looks like a good business can be disrupted and that is why you need to have a strategy and stay in shape. And of course be adaptable. That is the only way of being sustainable.

SES Has Seven Satellites Serving Africa Now – Communication Simplified

By
Tekedia Editors
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SES is a world-leading telecommunications satellite operator, with a global fleet of more than 40 geostationary satellites that can reach 99% of the world’s population.

 

SES satellites are the world’s leading television distribution platform, broadcasting the equivalent of more than 100,000 hours of television programming every day, and providing vital communications services and broadband access to businesses and to government administrations worldwide.

 

SES operates mainly through SES ASTRA and SES WORLD SKIES and holds participations in satellite operators QuetzSat, Ciel, O3b Networks, YahLive and in a number of satellite service provision companies. More about us

 

With a global fleet of over 40 satellites, seven of which currently serve the African continent, SES delivers satellite-based solutions to broadcasters, content and internet service providers, mobile and fixed network operators, business and governmental organizations worldwide.

 

Editor’s Note: This is our focus on Africa – companies opening shops or creating businesses in Africa

Unbranded Handset Market Takes A Hit – It is Cooling in China. You Better Brand That Phone

By
Tekedia Editors
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We have reported that the world of tablet and phone will never work without branding. We believe that people that sell unbranded phones, though they may work, are not riding on a good business model. People do not use phones or tablets for just the usage, they associate the brands.

 

So after many months of growth, unbranded manufacturers or what the industry calls white-box  manufacturers  are taking a hit.  Nomura Equity Research concludes that the market is on slow down after China Mobile cancelled 90% of 12 million TD-SCDMA 3G handsets it once put in. People as they make money want to be associated with brands and not using a phone with no identify.

 

This is already calling for changes in quarterly estimates with  SIM Technology Group Ltd., one of the largest handset manufacturers in China, issuing a profit warning, saying it expects to make a loss in H1 of 2011.

 

Also another player in this sub-sector, Longcheer, have implemented significant employee layoffs recently, according to Nomura analyst Leping Huang. The company announced its first quarterly loss in eight years in the third fiscal quarter ended March 31, 2011. When the financial results were announced Deng Hua, CEO, commented: “The market for our mainstay feature phones products continue to remain challenging due to the excess capacity and adverse competition both upstream and downstream.”

 

At the same time China Mobile has reduced its requirement for TD-SCDMA handsets from 12 million handsets to 1.2 million, which is set to challenge handset design houses and OEMs that had been gearing up to meet orders, Nomura said.

 

So if you are in Lagos and you hope to get into this business, think again. It is far better to brand your product and give it an identity.

Etisalat Blackberry® Social Plan – What You Need To Know

By
Tekedia Editors
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0

 

Etisalat Nigeria continues to improve its services and innovates like never before. Its Blackberry social plan is catching up with Nigerian blackberry users. This is how they introduced the product.

 

etisalat Blackberry® Social Plan

How about enjoying all the features of your social networking and chat on a less expensive plan??
The all-new etisalat Blackberry® Social Plan offers you this and so much more:

  • Unlimited Access to facebook, twitter, flickr and other social networking communities
  • Unlimited Access to chat using yahoo messenger, google talk, MSN Messenger/ Windows Live
  • Unlimited Access to Blackberry Messenger
  • 100 free on-net SMS on the monthly plans

 

The product comes in  three categories

 

Social Monthly

Features:  Social networking (facebook, twitter, flickr, MySpace) , Blackberry Messenger, Yahoo messenger, google talk,  MSN messenger

Activation code: *299*2#

Add-On Features: 100 on-net sms

Cost: 1,800

 

Social Weekly

Features:  Social networking (facebook, twitter, flickr, MySpace) , Blackberry Messenger, Yahoo messenger, google talk,  MSN messenger

Activation code: *299*2*1#

Add-On Features: N/A

Cost: 100

 

 

Social  Daily

Features:  Social networking (facebook, twitter, flickr, MySpace) , Blackberry Messenger, Yahoo messenger, google talk,  MSN messenger

Activation code: *299*2*2#

Add-On Features: N/A

Cost: 100

 

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