Displaying items by tag: Consumer
Comments made by President Donald Trump suggest he could implement a 10% tariff on Apple products imported from China. In an interview with The World Street Journal, Trump was questioned about the possible iPhone and laptop tariffs.
“Maybe. Maybe. Depends on what the rate is,” He said, “I mean, I can make it ten percent, and people could stand that very easily.”
A 25% tariff increase on $200 billion of Chinese goods are expected by Trump, and he will also add $267 billion worth of tariffs onto goods that are not already subjected to existing tariffs if the two countries don’t make a deal.
When asked about whether he would delay an increase in tariffs from 10% to 25% on January 1st, Trump said it would be “highly unlikely”, which looks set to cause further tensions between him and Chinese President Xi Jinping.
The trade war is likely to hurt American brands such as Apple, and affect their sales.
Previously exempt from the tariffs, Apple products such as the IPhone, AirPods and the Apple Watch would be affected. His comments saw the Apple stock down nearly 2% in after-hours trading.
Finnish telecommunications vendor Nokia has announced that it has signed a lucrative patent license agreement with Chinese consumer electronics behemoth OPPO.
OPPO, which is headquartered in Guangdong, is globally renowned for its innovative smartphones and was voted as the top smartphone manufacturer in China in 2016.
It has been disclosed that under the agreement, OPPO will make payments to Nokia for a multi-year license period. However, the terms of the agreement made between the two entities will remain confidential between the parties.
Nokia Chief Legal Officer and President of Nokia Technologies, Maria Varsellona, expressed her delight at the deal with the Chinese smartphone firm and said it further illustrated the benefits its global licensing program offers partners.
"OPPO is one of the leaders in the smartphone industry and we are pleased to welcome them as a Nokia licensee. This agreement further validates our global licensing program."
Chinese smartphone vendor Huawei Technologies has altered its strategic approach in Kenya in a bid to boost sales of its handsets. It has restructured the price of some of its devices and is now showcasing smartphones that are retailing at between $100-200. It is hoping that a sharp increase in sales will boost its market share in Kenya.
Huawei is currently positioned as number three in relation to market share in the African nation which has been described as a fast-growing local smart devices market. Huawei is trailing South Korean conglomerate Samsung Electronics and Tecno which is owned by Hong Kong’s Transition Holdings.
Huawei’s manager in Kenya, Derek Du said it entered the smartphone market by introducing three smart phones, but it didn’t focus on products retailing for under $200 and that costed the company long-term. In an effort to increase its market share in that segment from 4% to 15% it will overall its entire strategic approach.
Kenya’s telecommunications incumbent Safaricom enjoys a 72% market share (around 28m users) and they reported that there is now 13 million smartphones on its network, which is a significant jump from 10 million last year.
Kenya consumers have finally parted with their well-worn standard phones in favor of relatively cheap devices that offer them faster internet speed and access to applications such as WhatsApp, online banking and taxi-hailing services. According to Du, Huawei has switched its strategic focus after it became evidently clear that the average Kenyan consumer is price sensitive.
Du added: “The new focus on the lower end of the market has come about because the Kenyan consumer is price-sensitive. The $100-200 is the key part we can play. If we can bring it up, it means we will also bring up the whole market share.”
He believes that change will enable Huawei to boost its overall market share to around 25-30%, from the current 14% it has been rooted on for the last two years. Research has revealed that the average Kenyan worker earns an annual wage of $1,200, which subsequently means that most people can’t afford expensive smartphones.
Huawei’s previous approach centered on their mid-range smartphones were it enjoys a 30% market share. Huawei has enjoyed a successful twelve months globally, and the Chinese conglomerate, based in Shenzhen, is now seen as a real threat to the smartphone monopoly which is dominated by Samsung and Apple.
Huawei’s African boss said that the Kenyan economy was enjoying a resurgent comeback after a difficult number of years, and is in a stable position. This makes it an attractable market for investors, and du has reiterated its commitment to growing its business in Kenya.