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Currency Fluctuations, Weak Demand Impact EMEA PC Market 2Q2015- IDC

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‎PC shipments in Europe, the Middle East, and Africa (EMEA) reached 17.2 million units in the second quarter of 2015, posting a 21.6% decline year-on-year, according to International Data Corporation (IDC).

But, as expected, the market continued to suffer from unfavorable exchange rates which led to higher price points and weaker demand, with the decline deepened by the adverse year-on-year comparison with a very strong first half of 2014, when Windows XP related renewals boosted shipments across the region.

In addition, high inventories translated into lower shipments in this transition quarter, as the industry focuses on stock depletion in preparation for the Windows 10 launch later this summer.

“The second quarter was, as expected, a transition period between the very popular Microsoft Bing promotion, which supported sales over the past four quarters, and the forthcoming launch of Windows 10 at the end of July,” said Chrystelle Labesque, associate director, IDC EMEA Personal Computing.

All three EMEA regions suffered a strong contraction in PC shipments, with Western Europe posting a 19.3% decline, while CEE and MEA both dropped year-on-year, at -24.3% and -25.7% respectively.

Currency fluctuations and inventories contributed to these weak results in all three geographies. Both consumer and commercial segments recorded strong double-digit declines.

Commercial shipments declined 18.9% due to an unfavorable year-on-year comparison with 2014, when many businesses transitioned away from Windows XP and renewed their older devices.

Consumer shipments on the other hand contracted 24%, following the accumulation of Bing inventories across multiple geographies.

The results in both segments were weaker than anticipated, as demand did not meet expectations and many vendors were forced to reduce new shipments to clear inventories and be ready for the launch of new products in time for the back-to-school season.

To benefit from the latest available operating system, some of the back-to-school business has been delayed to later this summer. While portable PCs declined 18.5% across EMEA, desktop PCs posted much weaker results, contracting 26.4%.

This product category is still relevant in the commercial segment, although it is subject to enterprise renewal cycles, while the decline continues in the consumer market, as end users move to mobile devices such as notebooks, tablets, and smartphones.

PC shipments in Western Europe totaled 10.7 million units, with the consumer segment showing the strongest contraction, at -20.8%.

The market was affected by high stock levels, in particular for Windows Bing notebooks, as well as an unfavorable euro/dollar exchange rate which led to an increase in prices and contributed to a slowdown in demand.

Commercial shipments contracted 17.9%, with an adverse year-on-year comparison weighing on the result.

Southern European countries again performed better than the overall Western European market, with Spain and Portugal posting 4% and 2% growth respectively.

Italy contracted by 6%, a much softer decline than the Western European average.

Ongoing Windows XP renewals in the commercial space and the continued economic rebound in these countries contributed to the more positive results.

On the other hand, central and northern European countries all posted declines, affected by high inventory levels, weakening demand, and adverse year-on-year comparisons.

Germany and the Netherlands were the most affected, with PC shipments contracting by as much as 34% and 37% respectively.

“The decline in the consumer market in Western Europe came in line with our expectations,” said Maciek Gornicki, research manager, IDC EMEA Personal Computing. “Strong Bing shipments in the past several quarters led to high inventory levels and we anticipated that the industry would focus on stock depletion this quarter in preparation for the launch of Windows 10 and introduction of new products for the back-to-school season.

“The commercial market results, however, came in lower than expected. It seems that the increase in price points due to adverse currency fluctuations has taken its toll on demand and forced businesses to postpone some renewals. Many companies are also waiting for the new products to be launched with the new CPU platform later this year.”

“The PC market in the overall CEMA region in 2Q15 performed lower than forecast with the Middle East and Africa posting the worst results in years,” said Stefania Lorenz, associate VP, IDC CEMA. “The MEA region reported an overall decline of 25.7%. The major inhibitors were the high inventories across the region, the ongoing political and economic instability, and the currency fluctuations. Turkey, the largest PC market in the region, performed the worst, due to high inventory and the lack of government deals.”

“The PC market in Central Eastern Europe came in as forecast at -24.3%,” said Nikolina Jurisic, product manager, IDC CEMA. “The desktop PC market exhibited a stronger decrease than portables as the XP renewal wave is mostly over and comparisons to 2014 growth rates were unfavorable. The high inventory of portable PCs in most countries at the end of 1Q15 due to the end of the 15in. Microsoft Bing notebook promotion caused a major slowdown in sell-in during the second quarter with vendors and channels focusing on inventory depletion during 2Q.

“The dynamics on a country level were very different. Czech Republic and Poland both reported better results thanks to some deals in the government sector and relatively good consumer demand. The eastern part of the region continues to be negatively affected by devaluation of the local currencies in addition to the economic slowdown.”

“The industry is now focusing on the successful launch of Windows 10 in the coming weeks,” said Labesque. “However, the impact on hardware might be limited in the short term as the free upgrade approach for consumers does not require new hardware in many instances. For enterprises, most companies always conduct tests of the new operating system for several months before upgrading their platform and there, too, it might not require a hardware refresh. Overall, however, a large number of businesses are considering upgrading to Windows 10, supporting the next refresh cycle in the mid-term, particularly on mobile devices.”

Vendor Highlights
The market consolidation trend has been confirmed with the top 3 players consolidating their positions.

However, those vendors that pushed fewer Bing shipments in past quarters have benefited this quarter from year-on-year comparisons.

HP performed better than the overall market, but contracted in both consumer and commercial segments.

Strong results a year ago led to an adverse year-on-year comparison, while significant sell-in of Bing notebooks in past quarters also contributed to lower shipments in 2Q as HP prepares new products for the back-to-school season and Windows 10 launch.

HP results in CEE were strong with shipments growing annually.

Lenovo continued to outperform the competition and to gain shares annually. It maintained second position in the market although the vendor posted a decline in shipments.

High inventory in the channels and weaker demand affected its results.

Dell posted a strong quarter and was third in the EMEA ranking.

Results in commercial PC shipments were better than the market average and Dell increased its share in commercial portable PC shipments in EMEA.

ASUS climbed to fourth place in the ranking but its shipments declined in line with the market.

The limited Bing shipments reduced the vendor’s exposure this quarter.

Acer came in fifth with shipments declining across all EMEA subregions due to weak demand.

The vendor also focused on clearing inventory ahead of the new shipments for the back-to-school season.

Outside the top 5 vendors, Apple had a very strong quarter with growth reaching double-digit levels and market shares growing significantly as the vendor benefited from shipments of its new product portfolio.

Toshiba continued to focus on profitable growth, limiting shipments in some countries, which led to significant contraction, while Fujitsu posted a strong decline due to an adverse year-on-year comparison with 2Q14 when the end of Windows XP related renewals boosted the vendor’s shipments.
MSI came in 9th and Wortmann 10th.


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FG Launches Central Database for Stolen Asset Tracing

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Federal government has launched a Central Database under the Asset Tracing, Recovery and Management Regulations (ARTM), 2019 and the Central Criminal Justice Information System (CCJIS) under the National Anti-Corruption Strategy (NACS) 2017 – 2011 to assist in the fight against corruption.

FG Launches Central Database for Stolen Asset Tracing

Mr Abubakar Malami, AGF

Mr Abubakar Malami, attorney-general of the federation (AGF) and minister of Justice, at the launch in Abuja, said the database will ensure uniformity of process, access and information feeding to deepen transparency and accountability in the management of recovered assets.

To ensure compliance, he said his office is developing legislation for the full implementation and operation of the CCJIS.

“We will work together to establish and re-enact transparency and accountability in governance and management of our resources which we have committed to do by way of strengthening International Cooperation of our membership of Open Government Partnership,” he said.

In his speech, Mr Femi Gbajabiamila, speaker of the House of Representatives, represented by Mrs Ugonna Ozurigbo, chairman, House Committee on Justice, said the regulation on Asset Tracing, Recovery and proper management of proceeds of crime was signed on October 24, 2019, and took effect from November 1, 2019, replaced the proceeds of Crime Regulation of 2012.

The new regulation titled Asset Tracing, Recovery and Management Regulations 2019 empowers the AGF to take charge of the custody and management of all final forfeited assets, approval and appointment of asset managers and operating and maintaining a database for the records of all recovered assets within and outside Nigeria.

He said, the AGF’s office, under the new regulation, is also required to coordinate inter-agency investigations into recovery matters within and outside Nigeria from all law enforcement agencies whose law empowers them to undertake recoveries and maintaining a depository for all forfeiture orders issued by the Nigeria courts and courts outside Nigeria.

Asset Tracing, Recovery and Management, according to the Speaker, is a core value of good governance and its effective management will serve as a deterrent to would-be fraudulent minded individuals who may find themselves in public offices.

According to him, states resources must not be allowed to be stolen but if that happened by fraudulent individuals, efforts must be taken to trace the proceed, recover same and manage for the interest of the generality of the people.

“When the proceeds of crime are traced and recovered but again looted by government officials, I dare to say such act amounts to the crime of tertiary capacity and must be avoided.

“Assets not accounted for are assets lost; loss of assets undervalues the economic potential of a country and will negatively impact on the net worth of a country. Accordingly, Asset Tracing Recovery and Management is a panacea to rekindling of the value system of a nation,” the Speaker noted.

 


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Konga Bulk Debuts Monday

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Konga, Nigeria’s foremost ethical and innovative composite e-Commerce brand is set to unveil a revolutionary new solution – Konga Bulk – which the company says will represent the new normal for forward-thinking businesses and consumers in the Nigerian corporate space.

Equally important, Konga Bulk, the latest innovation from the e-Commerce giant, is set to go live on Monday, September 21, 2020.

Through this initiative, Konga is rolling out a mega platform which has been touted a potential game-changer, offering manufacturers, distributors, resellers as well as Small and Medium Enterprises (SMEs) an opportunity to take advantage of Konga’s world class assets including its secure regional warehouses, smart offices, cutting-edge technology, advanced logistics capabilities through an internally-owned subsidiary, Kxpress and its Central Bank of Nigeria-licensed payment platform known as KongaPay.

This is in addition to leveraging Konga’s e-Commerce engine and extensive marketing expertise in bringing their products and services to the consciousness of millions of Nigerians nationwide.

In other words, Konga is taking a huge burden off the shoulders of manufacturers and other business owners in Nigeria through this ambitious project.

By allocating physical office and warehouse spaces to partner businesses and placing its many other cutting-edge assets at their disposal, Konga is ushering many into the new normal by bringing succour to corporate entities, many of whom have been encumbered by the COVID-19 pandemic.
Furthermore, Konga Bulk will play a very important role, bridging the gap to genuine products and services between manufacturers, distributors, resellers, bulk buyers and consumers.

Resellers and other bulk buyers can also take advantage of best prices available for genuine products exclusively through Konga Bulk.

Kalu Johnson, vice president, Strategic Business, said businesses who sign up on Konga Bulk have a lot to gain.

‘‘Konga Bulk is a very ambitious project which we have positioned as the new normal.

“It is a unique opportunity for manufacturers to take advantage of the huge assets and real estate, both physical and virtual, available at Konga.

‘‘We have invested significantly and strategically in various areas of our operations.

“Today, Konga owns arguably the largest single warehouse space in Lagos in addition to other similar massive infrastructure in other parts of the country such as Onitsha, Port Harcourt, Uyo, Abuja, Owerri and other locations.

‘‘As a manufacturer, distributor or business owner signed up on Konga Bulk, you no longer have to worry about owning your own office or warehouse space. Nor do you have to bother about the heavy investment in logistics, delivery, payment solution, technology, marketing or activations.
“You can rely on Konga’s world class competencies and assets in these areas.

‘‘Businesses must find a way to rebound from the difficulties occasioned by the COVID-19 pandemic.

“Konga Bulk, which is focused on ushering in the new normal, is one of the innovations we have come up with to provide a way out,’’ he concluded.

Konga Bulk goes live online at www.konga.com and offline in every Konga retail store nationwide on Monday, September 21, 2020.


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Access Bank Reaffirms Support for An Innovative, Smart Lagos State

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Mr. Herbert Wigwe, managing director and chief executive officer of Access Bank Plc, has said that Access Bank Plc will not relent in supporting innovative programmes aimed at transforming Lagos into a 21st century State driven by technology innovations.

Wigwe spoke yesterday during the finals of the Lagos State Smart Meter Hackathon design held at the Bank’s Corporate Headquarters in Lagos.

An initiative of the Lagos State Ministry of Energy and Mineral Resources, the Hackathon is aimed at providing affordable electricity meters to the populace by facilitating the design and production of meters that will accelerate efforts towards achieving improvement in energy distribution, monitoring and prevention of revenue leakage.

Wigwe who was represented by Mr Ade Bajomo, executive director, IT & Operations at Access Bank, said that supporting the Hackathon once more reinforces the Bank’s commitment to leveraging technology for the betterment of the society.

“Having Hackathon and innovative programmes like this, has always been part and parcel of our DNA in Access Bank. We are forever looking for new things to do to solve real problems in Africa and beyond; new things that would move the life of our people forward.

“We are always looking forward to doing things that would make more people financially independent, driving and enhancing the well-being of the entire society,” he said.

He noted that now the world is witnessing the Fourth Industrial Revolution, and there are Africans working with the rest of the world and using technology to solve the problems of the people.

Wigwe stressed that Access Bank does not exclude the rest of the world when it comes to using technology innovations to address the problems of the people.

“That is why this Hackathon is very important because it’s our people solving our problems and leveraging global solutions to finding our answers to our own problems.

“And that is why at the Africa Fintech Foundry (AFF), which Access Bank is promoting, we want to have more innovators and innovations that will help in transforming our society for the better,” he said.

The Access Bank boss stated that to see this Hackathon come to light shows the commitment of the Lagos State Government to not only the project, but to the actualization of a smart Lagos, where electricity is accessible and affordable.

He pledged Access Bank’s continued support to the Lagos State Government’s efforts at building a smart state.

Mr. Olalere Odusote, convener of the Lagos Smart Meter Hackathon and the State’s Commissioner for Energy and Mineral Resources, said that there were very many talented people who applied for the Hackathon, noting that there were 65 submissions in all, out of which its panel of experts reduced the number to the five finalists that participated at the finals of the Hackathon.

“We had the hardware yesterday and we were very impressed with what we saw. We are expecting no less from the software side. We are going to get engaged, look at what they have to offer and then integrate it into our future.

“We are trying to solve our own problems by ourselves. This is just the start; it is not a one-off project. At the end of the event, we will take the product to our prototype mode; we will take the product to a commercial development process,” he said.

The Commissioner said they were not just doing the Hackathon for the sake of it but are looking for solutions that will contribute to making Lagos a 21st Century economy.

He thanked Access Bank for its generosity, support and partnership with the State government. He also thanked other partners for joining in the journey of making Lagos a great state.

Five contenders each emerged from both categories of the competition, and the two winners are expected to share the prize money of seven million naira.

Finalists were shortlisted after a transparent, rigorous and competitive process.

The Hackathon attracted 274 registrations or entries, 127 of which bid in hardware category, while 147 competed in software group.

The five software finalists for the Hackathon on Thursday were Magnitronics, Vectorians, Zeena Platform, Chosen Soft Tech and Gideon. 

It would be recall that during the launch of the programme on July 30th, 2020, the Lagos State Governor, Babajide Olusola Sanwo-Olu noted that the Smart Metre Hackathon Initiative marked a significant milestone in the implementation of the State Government’s plan towards improving access to electricity.

He said it aligned with the Sustainable Development Goal 7 of the United Nations, targeted at achieving universal access to affordable, reliable, sustainable, and modern energy for all by 2030.

The Lagos Smart Meter Hackathon 2020 was convened by the Lagos State Ministry of Energy & Mineral Resources, curated by Eko Innovation Centre, and sponsored by Access Bank Plc, Egbin Power, and Ikeja Electric Distribution Company.

Other sponsors include Mojec International, Eko Electric Distribution Company, MOMAS Electricity Meters Manufacturing Company, ElSewedy Electric, Royal Power & Energy, Venture Garden Group, InfraCredit, and Axxela Limited.

They were supported by the Lagos State Office of Innovation and Technology, Lagos State Employment Trust Fund (LSETF), the Nigerian Electricity Management Services Agency (NEMSA), Africa Fintech Foundry (AFF), Oracle, IBM, General Electric, Business Day and Accelerate TV.

The Grand Finale of the Hackathon holds on Friday, September 18, 2020 at Eko Innovation Centre, Ikoyi, Lagos.


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