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Samsung Electronics Tips First Annual Profit Fall in 3 Years

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Global smartphone leader Samsung Electronics Co Ltd on Thursday confirmed expectations for its first annual profit decline since 2011, although a pickup in the fourth quarter hinted that earnings may have stabilized in the short term.

The South Korean tech giant lost market share for three consecutive quarters up to July-September, and analysts say the trend likely continued in the October-December period thanks to competition from Apple Inc’s new iPhones and cheaper Chinese rivals like Xiaomi Inc [XTC.UL].

Still, expectations of healthy memory chip demand and improvements in the mobile business on the back of new mid-to-low tier smartphones are buoying hopes that Samsung has at last staunched the bleeding in quarterly earnings.

“I think the company will show a turnaround,” said CIMB analyst Lee Do-hoon, pointing to the positive outlook for Samsung’s foundry and display panel businesses this year.

Samsung said its fourth-quarter operating profit is likely to be 5.2 trillion won ($4.74 billion), beating a mean forecast of 5 trillion won from a Thomson Reuters I/B/E/S survey of 44 analysts.

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The outlook means Samsung’s 2014 profit will probably be 25 trillion won, the weakest in three years, although it marks a rebound from the third-quarter’s 4.1 trillion won profit which was the firm’s lowest quarterly result in more than three years. The company is expected to release its annual results around the end of January.

Samsung shares were trading 0.5 percent higher as of 0310 GMT, compared with a 1.1 percent rise for the broader market.

“There were concerns about the mobile division but it looks like the won’s recent weakness against the dollar and the Galaxy Note 4 impact helped,” HMC Investment analyst Greg Roh said, referring to solid sales of Samsung’s latest flagship phone.

“I expect profits to continue improving through at least the second quarter of 2015.”

Several analysts tipped the semiconductor division to have earned more than the cash cow mobile business in October-December, buoyed by healthy demand for memory chips from personal computers and smartphones.

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The company did not provide a breakdown of its earnings figures in Thursday’s outlook, but a person with direct knowledge of the matter told Reuters that components sales picked up across the board, with healthy demand for memory chips and higher liquid crystal display panel prices.

The mobile division’s contribution to Samsung’s profit has slipped from about 68 percent at its peak in 2013 to about 44 percent in the third quarter, as its high-end offerings lost out to Apple’s iPhones. Meanwhile buyers in booming emerging markets like China have opted for cheaper devices rather than Samsung’s flagship Galaxy series.

The mobile division’s fourth-quarter profit improved slightly from the previous quarter due to a pickup in sales of premium products like the Galaxy Note 4 and lower marketing costs, the person with knowledge of the matter said, requesting anonymity because they were not authorized to speak publicly. But overall smartphone shipments fell, the person added.

Analysts say the company’s new focus on mid-to-low tier smartphones will squeeze margins and cap profits, offsetting the benefits of the expected increase in sales.

“It’d be hard to expect a sharp pickup in earnings from the mobile division in the absence of a hit product,” Korea Investment Trust Management Baik Jae-yer said.

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The median forecast from a Thomson Reuters I/B/E/S survey of 52 analysts tips a 23.8 trillion won profit for 2015, which would mean a second straight annual decline if Thursday’s profit guidance is confirmed.

Samsung is talking up its internet of things-related businesses such as the smart home as the next big thing, while launching new quantum dot televisions and metal-body smartphones to boost earnings. But investors do not expect a profit surge from Samsung in the near term.

“What Samsung needs to show under the new regime of Vice Chairman Jay Y. Lee is stabilization, and that includes earnings,” HDC Asset Management fund manager Park Jung-hoon said ahead of Samsung’s guidance.

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82% of Organizations Concerned about AI Risks Even as Adoption Accelerates – Survey Reveals

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At its recent Cyber Security Weekend for the Middle East, Turkiye and Africa (META) region Kaspersky shared the results of a global study conducted by its internal research center which surveyed 1,800 IT and cybersecurity decision-makers and specialists from organisations across 18 countries and multiple industries.

The report shows that the pace of AI integration across organisations is rapid, despite associated risks. The company’s experts stressed that while AI adoption delivers clear efficiency gains, it must be accompanied by robust cybersecurity solutions, well-defined internal procedures, and comprehensive employee education programmes.

The report highlights a clear organisational preference for AI-enhanced technology: 68% of respondents said they would recommend a solution with AI features built in, while a mere 5% indicated they would prefer to avoid AI-enabled tools. This overwhelming endorsement underscores how deeply AI has embedded itself as a value driver across the modern enterprise.

AI has become a mainstream productivity tool spanning many business functions. The global survey findings confirm that employees across departments are already relying on AI tools for a wide range of everyday tasks, including: data analysis & visualisation (54%), project management (49%), search for information (47%), department-specific tasks (46%), text generation and editing (41%).

While organisations recognise the tangible benefits AI tools bring – including improved process efficiency and enhanced quality of deliverables – they also see the associated dangers. 82% of respondents voiced concerns about the risks AI poses to their organisation. These concerns are grounded in real-world experience.

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Among the 87% of organisations worldwide that faced a cyber incident in the past year, 13% reported that they had experienced threats stemming specifically from AI-related vulnerabilities.

Notably, 74% of respondents believe that these risks can be effectively mitigated through employees’ responsible behaviour — pointing to the critical importance of security awareness and training in the AI era.

“The speed at which organisations are embracing AI is remarkable, but it must be matched with an equally strong commitment to security. We are already seeing a growing range of threats directly tied to AI adoption – whether it’s malware camouflaged as popular AI tools, vulnerabilities introduced through unsecure vibecoding, or leaked access credentials to corporate AI platforms and malicious skills by AI agents.

Managing these risks requires a holistic approach: the right technology, well-defined procedures, and a security-aware workforce,” comments Brandon Muller, senior security consultant for the META region at Kaspersky.

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How Temu Helped a Madagascan Vanilla Family Business Sell Direct to Consumers Across Europe

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Malagasy Vanilla has transformed its decades-old wholesale business by embracing direct-to-consumer sales through Temu, enabling the family-run company to reach customers in 14 European markets while significantly reducing logistics costs.

How Temu Helped a Madagascan Vanilla Family Business Sell Direct to Consumers Across Europe

For years, premium Madagascan vanilla supplier Malagasy Vanilla sold exclusively to restaurants, bakeries and wholesalers because the cost of shipping a single pack to individual customers often equalled the value of the product itself. That changed after the company joined Temu’s Local Seller Program in November 2025.

The Belgian-based business, which sources high-quality vanilla from Madagascar, has leveraged Temu’s logistics network to cut domestic shipping costs by nearly half through a partnership with Belgian postal operator Bnode. The move has enabled the company to enter the retail market for the first time and quadruple its sales within four months.

According to Belinda Rabenandrasana, co-Chief Executive Officer of Malagasy Vanilla, Temu has opened up an entirely new customer segment for the company.

“Temu opened a new avenue for us,” she said. “We were finally able to explore selling to individuals.”

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The platform now contributes between five and 10 per cent of the company’s overall revenue.

Expansion into 14 European Markets

Malagasy Vanilla is among businesses participating in Temu’s Local Seller Program, launched in Europe in 2024 to help local merchants expand beyond their domestic markets.

Through partnerships with more than 150 logistics providers across Europe—including Bnode in Belgium, La Poste in France and DHL Group in Germany—Temu offers sellers access to affordable shipping and delivery infrastructure without requiring major investment in logistics.

After successfully establishing direct-to-consumer sales in Belgium, Malagasy Vanilla expanded into 14 European countries, including Germany, France, Spain and Poland.

Rabenandrasana said the logistics support, competitive shipping rates and seller assistance provided by Temu made the expansion possible.

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“Without Temu and its partnership with Bnode, it would have been very difficult for a small business like ours to start selling directly to consumers,” she said.

She added that Temu also assists sellers in managing regulatory requirements such as the European Union’s Extended Producer Responsibility (EPR) compliance, making cross-border operations easier for small businesses.

Three Generations of Vanilla Expertise

Malagasy Vanilla traces its roots to three generations of the Rabenandrasana family in Madagascar’s vanilla industry.

Belinda’s grandfather began trading vanilla locally, while her father expanded operations across Madagascar. She launched the company’s international business in 2017, supplying premium Madagascan vanilla to European restaurants, pastry shops and food wholesalers before establishing operations in Belgium in 2023.

The company partners with growers and producer associations in Madagascar, where between 20 and 40 workers oversee the six- to 10-month curing process that transforms green vanilla pods into premium black vanilla.

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Operations in Belgium focus on packaging, quality assurance and distribution.

Customer Reviews Drive Growth

Under its Lavani brand, Malagasy Vanilla sells gourmet-grade whole vanilla pods targeted at both professional chefs and home baking enthusiasts.

Rather than relying heavily on paid advertising, the company has benefited from Temu’s product discovery tools and customer reviews, helping the niche brand gain visibility organically.

According to Rabenandrasana, strong customer feedback has played a significant role in increasing traffic and boosting sales.

The brand currently maintains a customer review rating exceeding 99 per cent on the platform.

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Future Plans

Looking ahead, Malagasy Vanilla plans to expand its European footprint further by establishing a warehouse in France and increasing sales across the continent.

The company is also developing new products, including vanilla extract and vanilla sugar, while planning to open a physical retail and production facility in Belgium later this year.

In addition, it intends to launch a social-impact initiative aimed at supporting vanilla-growing communities in Madagascar.

Reflecting on the company’s evolution, Rabenandrasana said the business continues to build on her family’s legacy.

“My grandfather worked locally, my father expanded nationally, and now we are building internationally,” she said.

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FG Must Consider Data Security, Sovereignty in 3MTT Initiative – Stakeholders

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Stakeholders in Nigeria’s digital economy have urged the Federal Government to review its partnership with global recruitment platform Hello.cv under the 3 Million Technical Talent (3MTT) programme, citing concerns over data security, digital sovereignty and the country’s “Nigeria First” policy.

FG Must Consider Data Security, Sovereignty in 3MTT Initiative – Stakeholders

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The concerns follow the Federal Ministry of Communications, Innovation and Digital Economy’s announcement on May 6 of a 10 million-dollar partnership with Hello.cv aimed at increasing the global visibility of Nigerian technology professionals.

Under the initiative, 20,000 selected 3MTT fellows will receive a global professional profile package, including an Artificial Intelligence (AI)-powered job search agent, a professional curriculum vitae (CV) writer and a personal .cv domain, valued at 500 dollars per participant.

While stakeholders acknowledged the programme’s potential to improve global employment opportunities for Nigerian tech talent, they expressed concerns about the implications of hosting participants’ digital identities and data on a foreign domain.

Chief Executive Officer of Cyberchain and Global Digital Economy Strategist, Engr. Jude Ozinegbe, said the arrangement raised important questions about data ownership and jurisdiction.

According to him, registering domains under an entity outside Nigeria gives that entity a degree of control over activities associated with the domain.

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“When you register your domain under a different entity outside your jurisdiction, that entity will have access to whatever is happening within that domain.

“In the long run, the Nigeria Data Protection Commission (NDPC) may have to examine the agreement and assess the security implications of such domain ownership,” he said.

Ozinegbe urged the NDPC to review the security protocols employed by Hello.cv to ensure compliance with Nigeria’s data protection regulations.

Also speaking, Ugonma Egwuatu of ECAM Global Services, an information and communications technology and data protection firm, said the security of data belonging to 20,000 fellows should be of significant interest to regulators.

She noted that while the ministry had the authority to determine how the programme was implemented, there was a need for greater transparency regarding the handling of participants’ personal information.

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“The NDPC requires its registered Data Protection Compliance Organisations (DPCOs) to subscribe to the .ng domain.

“If a government ministry permits trainees to operate on a foreign domain, then the commission should examine the arrangement because we are dealing with the data of 20,000 Nigerians,” she said.

Egwuatu also called for clarity on how data generated through the platform would be processed, stored and protected.

“There should be explanations regarding the backend. What are they doing with the data of people who visit these sites? Why use a foreign domain instead of the .ng domain? These are legitimate questions that deserve answers,” she said.

She added that government should ensure appropriate third-party agreements and safeguards were in place before implementing such initiatives.

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On his part, Chief Executive Officer of DNS Africa, Dr. Adebunmi Adeola Akinbo, said the objectives of the programme could still have been achieved while leveraging Nigeria’s country code top-level domain.

According to him, Hello.cv could have registered a hello.cv.ng or hellocv.ng domain in collaboration with the Nigeria Internet Registration Association (NiRA).

“The .ng domain can conveniently accommodate such a platform. If Hello.cv intends to onboard millions of Nigerians, it can work with NiRA to create a local domain structure.

“That way, the investment remains within Nigeria, strengthens the digital economy and supports local internet infrastructure,” he said.

Akinbo argued that excluding the .ng domain from the initiative undermined Nigeria’s digital identity and sovereignty.

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“As good as the programme may sound, leaving the .ng domain outside this engagement and taking Nigerian data outside the country’s digital jurisdiction is not the best approach,” he said.

Also commenting, Founder and Chief Executive Officer of Precise Financial Systems Ltd., Yele Okeremi, stressed the importance of ensuring that investments in Nigeria’s digital economy create long-term domestic value.

According to him, building a sustainable technology ecosystem requires more than developing skilled professionals.

“Investment, particularly in technology and the knowledge economy, is not just about having smart people.

“It is also about who owns the infrastructure and who ultimately benefits from the value created. Nigeria must ensure it retains as much of that value as possible,” he said.

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Similarly, Chief Executive Officer of the Internet Exchange Point of Nigeria (IXPN), Muhammed Rudman, described the use of foreign domains for a government-sponsored initiative as inconsistent with efforts to promote Nigeria’s digital economy.

“I don’t know where this idea came from, but it is unpatriotic for Nigerian companies funded by Nigerian resources to adopt .cv domains instead of .ng.

“Global companies such as Google register country-specific domains like google.ng when operating locally. Registering 20,000 additional .ng domains would improve Nigeria’s online visibility and strengthen the local internet ecosystem,” he said.

Rudman urged the Federal Government to support indigenous digital infrastructure by encouraging the use of the .ng domain.

The 3 Million Technical Talent (3MTT) programme is a flagship initiative of the Federal Ministry of Communications, Innovation and Digital Economy aimed at equipping Nigerians with globally relevant digital skills.

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The programme provides free training in areas including software development, artificial intelligence, cloud computing, cybersecurity, data analytics, machine learning, animation, DevOps and user interface/user experience design through a hybrid learning model.

Stakeholders maintained that while the partnership with Hello.cv could expand international employment opportunities for Nigerian technology professionals, greater attention should be paid to safeguarding the country’s digital assets, promoting local internet infrastructure and ensuring compliance with Nigeria’s data protection framework.

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