The Nation Newspaper

Category: e-Business

  • Airtel, Girl Effect, iSON Group to empower vulnerable girls

    Airtel Nigeria has announced a partnership with Girl Effect, an international non-profit organisation and iSON group, the largest Information Technology Group in Africa, to empower rural and vulnerable girls in matters relating to finance, entrepreneurship, health, economic empowerment and safety, among others.

    With the partnership, Girl Effect and iSON Group will leverage their highly successful Girls Connect initiative to give rural girls a voice. Girls Connect is an innovative interactive voice response (IVR) service that enables girls to listen to pre-recorded stories on their mobile phones before connecting to a specially-trained role model to answer their questions.

    Girl Effect and iSON Group ran a successful pilot of Girls Connect across five locations in Kano last year. No less than 44,000 calls were made to the service during the eight-week campaign, five times more than originally expected. Since July, last year, the programme has been live state-wide across Kano and Edo, in both Hausa and Pidgin.

    Commenting on the initiative, its Director, Corporate Communications & CSR, Emeka Oparah, said: “Airtel is proud to be associated with Girl Effect and iSON on this exciting journey to empower and liberate girls across the country.

    “At Airtel, we are intensely interested in connecting our esteemed stakeholders to the people, information, resources and opportunities that will enable them succeed and realise their full potentials. With the Girls Connect initiative, it our hope that more girls will be inspired, empowered and encouraged to do more, achieve more and change the world.”

    Hadeezah Haruna-Usie, Deputy Country Director at Girl Effect Nigeria, said: “Girls Connect is an innovative campaign that is empowering girls.’’

     

     

     

     

     

     

     

  • Interswitch unveils SKIDATA payment options

    Interswitch Group has announced a new offering for the acquisition of its Interswitch SKIDATA parking system.

    The new offering is a package that allows for flexible payment plans and budget-friendly implementation options, with a guarantee of after-sale support and maintenance.

    Interswitch is partnering SKIDATA (its technical partner) to provide parking solutions that eases access for vehicles and people. The solution focuses on products for car parks, shopping malls, estates, parks, and event facilities. These range from barriers and columns, to automated payment machines, cash desks and validation systems to access readers, marketing and customer loyalty solutions and tickets – as well as the SKIDATA tools for reporting, control, and monitoring.

    Olawale Akanbi, Group Head, Corporate Solutions at Interswitch, said: “We are very excited about the new Interswitch SKIDATA parking solutions offer.Considering the current economic realities, customers are increasingly becoming price sensitive, and we understand this. Being a customer-centric organisation, we are committed to offering our customers best value for their money. This is why we have introduced this offer with the flexible payment plans, budget-friendly implementation options, with the after-sales support service.”

    Akanbi said the solution holds huge benefits for professionals, such as property developers, facilities managers, mechanical and electrical companies, IT solution contractors, car parking companies, and project management companies.

  • 9mobile appoints Oki CFO

    9mobile has appointed of Phillips Oki as its new Chief Financial Officer.

    Oki, who has already resumed duties, emerged through a meticulous process that sought to identify the best fit for the towering requirements of the critical position, given the new phase of the business as it moves to explore new grounds of success.

    The new CFO brings to 9mobile over two decades of cognate work experience in functional areas across financial accounting and management, audit, business and project management, financial reporting, and budgeting. With robust experience cutting across private and public sectors, including the academia, Oki possesses a rare blend of invaluable insights and working knowledge in the vast field of finance.

    Prior to joining 9mobile, Oki’s career progressed steadily over time across organisations where he played strategic roles resolving challenges innovatively and creating commendable solutions.

    From a successful audit role at KPMG Nigeria and consulting experience with Price Water Coopers (PWC), he joined Royal Marchant Bank and moved on to other organisations, including Pepsico International, TBIC Nigeria Limited and Babcock University.

  • Technology will replace doctors, others with robots

    The evolution of technologies, such as Artificial Intelligence (AI) and robotics, is challenging the relevance of human beings in professions, such as medicine, media and aviation. Robots will become better surgeons. AI will pilot aircraft better than human beings. Welcome to new Tech Kingdom. Founder/CEO, New Horizons Nigeria, Tim Akano, says while industry undergoes this transformation, all hopes are not lost as skills in cyber security, mobile app development, data science, big data and others will be in hot demand this year and beyond. He spoke in Lagos during a media interaction. LUCAS AJANAKU was there.

    YEARS before the first marriage between man and robot took place and before the emergence of Artificial Intelligence (AI) , you saw these radical technological innovations coming from your yearly digital crystal ball prediction and you  accurately predicted them.

    In this new year, what do you see on the horizons for individuals and businesses, technologically speaking?

    As you rightly pointed out, the first world Artificial Intelligence news broadcaster was unveiled by the Chinese Xinhua News Agency on November 9 2018: the Ai read news on television and millions of people around the world did not know immediately that it was not a human being.

    You also will recall the Japanese Pop Star Eiguchi Aimi who took Japan by surprise and for 17 days nobody knew in Japan that Ms. Aimi was not a human being singer but AI. You will also recall that in April 2017, a Chinese AI Engineer, Zhang Jiajia, built and married a robot spouse for himself named Yingying in a weeding that was well attended by his parents and friends and conducted in accordance with the Chinese marital culture and custom. Also, in October 2017, Saudi Arabia made Sophia, a robot, accorded Saudi citizen with human rights.

    What does it all add up to? Where is the world heading technologically?

    In my lecture in December last year at CMD on: Artificial intelligence and the future of learning– I submitted that homo sapiens are in transition, and on a one-way evolution ticket to becoming something else: Homo Deus. We have bought the ticket, unfortunately- it’s one way- with zero chances of returning to who we are. But I would like us to look at the digital crystal ball this year differently from what we used to do in the years past. I believe it will be more beneficial for everyone- journalist, entrepreneur, job seekers, parents and governments if we break it down into sectors. Let’s look into 10 areas: unemployment, FinTech, telecom, education, agriculture, media, manufacturing, homeland security, trade and governance.

    What do you see as the intersection between technology and the future of jobs? Aren’t we all going to become jobless with the rate at which robots and AI are replacing us?

    Yes and No. A friend of mine put it poetically in an article recently in the newspaper ”how technology stole our breakfast and is about to eat our lunch”.But I disagree with his conclusion. Technology did not steal anybody’s breakfast rather technology changed our breakfast menu and gave us a new breakfast menu and technology has equally announced that a new lunch and dinner menu list is on the horizons. It is by putting issues in the right perspective that we can take full benefits of what is and what is to come. My answer in this sector is relevant to anyone between 10 and 69 and business organisations as well.

    There is already a new list of technology skills  that can make anyone or organisation to be relevant in the new Tech Kingdom that we are entering into. The latest LinkedIn research on skill and employment shows that there are 50,000 professional skills in the world. But most of these skills will be obsolete between the next three and five years. Most of the traditional skills will decline in value. Banking/finance, architecture, accountanting, and others will decline because of technology.

    However, the 10 hottest skills that will grow in demand this year and beyond are:  creativity, innovation and analytical reasoning; persuasion, collaboration, and adaptability; cloud computing; AI, IoT and cyber security; people and time management; mobile application development; sales leadership, customer service, digital and social media marketing; animation, video, audio, and game development; business analytics and  competitive strategies; and data science & big data. The demand of these 10 skill-sets by the industry will grow geometrically because we have shortages and businesses are developing along these lines exponentially. If you have children or cousins or brothers or sisters and you don’t want them to be hungry in the new Tech Kingdom- these are the skills that will be in the greatest demand. Dr Robot will be a better surgeon than human doctors in few years’ time. AI will be a better pilot than human pilot, AI will replace drivers and cars will be electric without engine. AI will do some accounting, architectural designs, journalism, military, teaching and engineering jobs.

    Everything we are doing will converge on mobility- our phone will become part of us in a new form. It will be engrained in our flesh- this will drive the demands for experts in mobility and IoT.  Then when Robot produces in the factory- Peter James and John have to sell to Steve and, Florence. A Buhari or an Atiku will always need the services of digital marketing professionals to sell their candidacy to the electorates: so selling skill, customer service, digital and social medial skills will be in hot demand.

    How about FinTech?

    Obviously, banking and financial industry are the biggest consumers of technology. Therefore, using past years as a guide, FinTech will continue to dictate the speed of innovation in technology.

    There are top 10 variables that will shape the financial industry this year and beyond. These are: digital only bank will grow faster than the legacy brick and wall, high street banks; there is bound to be bigger cash injection by banks into digital transformation in order to reduce overhead cost ultimately; there will be massive deployment of AI in customer profiling for credit transaction; due to the stringent and thick regulatory requirement and compliance for the financial sector- more banks will make use of AI technologies for compliance purposes; this is the year of surgically implanted Near Field Communication (NFC) devices. Block chain and crypto currencies diversification will be massive consequent upon the rise and fall of Bitcoin- we have not seen the end of crypto; quantum computing will become mainstream because of Big Data and IoT; GDPR and digital marketing for banks will drive the OPT-IN data mining sales model as a way to reach customers; decentralised app for payment-online payment using decentralised apps will grow because of their relative security vis-à-vis the legacy payment model; and cyber security- when Marriorit Hotel lost 500 million vital data to cyber thieves towards the end of last year- that was a passing shot to all the financial institutions that cyber security will become their centre of gravity in this year and beyond.

    What about the telecoms industry?

    This is the 5G year – the massive deployment in advanced countries of extra super-fast internet is this year. Towards the end of last year, a few smart nations tested the 5G technology and the outcome was awesome.

    Finland was the first country in the world to make 5G mobile internet available to individuals and businesses. United States AT &T delivered a super-fast internet as a test run for about 5000 visitors using its own hardware and the result was great.

    In South Korea, Ericsson, Intel and Korean Telecom connected a moving car to live 5G network as it drove through Soul and the experience of the customers was out of this world. MTN, Vodafone are two other major players in the 5G race.

    However, there is one major but. Since 5G technology makes use of virtualisation and IoT, it , therefore, opens itself up to a wider range of attacks surface. Cyber security will become a major cost- centre for telcos. The breakfast and lunch of telcos will continue to end up in the stomach of Skype, WhastApp and those social medial stuff that offer communication at the price of Tom Tom sweet to users! Telcos must innovate fast or die suddenly.

    The top 10 variabless for telcos are 5G; cyber security: 43 per cent of telcoss was attacked in 2018 and it took an average of three months to detect;  IoT explosion- we are going to witness connection of devices running into billions or even trillions which will require gargantuan data consumption. This is the age of thingsfication; saturation for voice business-once Africa gets to 70 per cent penetration, then telecoms will need to search for growth elsewhere may be as content providers; OTT and value added services- OTT services fuelled by video streaming and high demand for non-linear media consumption will grow exponentially; cross industry alliance between telecoms and broadcasting companies-Telcos would begin to acquire companies that are producing entertaining content, for example, popular TV shows, and live sports games among others as a new growth path; commoditisation of Augmented Reality (AR) and Virtual Reality (VR)- Telecoms with a view to differentiating their products and services will begin to use AR,VR on smartphones to empower digital visualisations on real images and enhances customer experience; regulations for telcos: GDPR, e-privacy regulations among others will drain some cash from the pocket of telcos;  machine leaning and AI will help in automating and bettering many back-office operations and sundry customer experiences, this will include customer predictive maintenance services; save and affordable in-flight connectivity system (IFCS) will be a game-changer.

    You have been in the education industry for over a decade, how will the industry fare?

    Technology has entered into classrooms and it will revolutionise the way we teach and learn. The top 10 variables that will shape education include: AI will impact speech recognition, problem-solving, and planning; AI will drive automation of administrative tasks like students’ grading, creation of smart content in the curriculum, and customisation of the teaching process; medical students can now watch live simulated surgeries using VR technology; bringing  education video games into classrooms this makes learning more fun and engaging; learning analytics will enhance better monitoring of student behaviour and absorption level by utilising effectively the existing data; need to make education cheap and accessible will continue to drive the demand for open education at higher education level; IoT learning will enhance personalisation, drive better engagement and skill acquisition; because the society is in transition to a technology kingdom, the need for science technology engineering and mathematics (STEM)  education will increase; since everything is going green from electric cars to green classroom, there will be green courseware; education is no more going to be on the basis of one-cap-fits all. Game theory allows instructors to choose the most appropriate method for student leaning in a giving situation; and brick and mortal education will witness slow growth compared with online/anytime/live education. Besides, the awareness to downplay paper qualification in favour of skilled-based education will increase.

     

  • Stanbic IBTC to leverage tech for youth empowerment

    Frontline financial services provider, Stanbic IBTC said it will continue to leverage technology to empower youth for sustainable economic development.

    The lender, which unveiled its strategic objectives ahead of the Lagos Social Media Week, which it is sponsoring, said rather than leveraging the annual platform to sell, it will be highlight the tools and basics of formal career development, entrepreneurship drive and business management that will create wealth  and secure a promising future for the youth.

    The yearly conference and exhibition will hold between February 4 and 8. It has With great influence comes great responsibility as theme. The event, renowned for eliciting interesting conversations and bringing together diverse perspectives, has gained popularity as a platform to discuss the most productive ways to harness social platforms to drive thought and innovation, improve consumer experiences and foster collaborations.

    The Chief Executive, Stanbic IBTC Holdings Plc, Mr. Yinka Sanni, said the organisation’s participation and sponsorship of the forum was an expression of its determination and commitment to availing young, vibrant  youths, irrespective of background and position in life, requisite mentorship and guidance to help them achieve their goals and aspirations.

    He added that this essential career management, wealth creation and preservation tools, principles and basics, undoubtedly, transcends financial knowledge and status.

    Sanni said the lender will showcase some renowned resource persons, including career counselling and employability training specialist, Dr. Dipo Awojide, a Lecturer in Strategy at the Nottingham Business School, United Kingdom and founder of the BeenThereDoneThat Hub (BTDT Hub), who has built a global reputation in career coaching and counselling.

    According to the organisers, the forum will focus on ideas, trends, insights, inspiration to help both individuals and businesses across the creative, technology and financial industries understand how to achieve more in a hyper-connected world and engender good business practices and policies that leverage technology to transform industries and communities across Africa. The event also features a mixture of keynotes, panels, workshops, masterclasses and presentations on a wide range of topics, including business, entertainment, education, technology and politics, all aimed at advancing the use of social media, and an area dedicated to co-working and interactive installations.

    Also featuring are genuine success case studies to reinforce and underpin the importance of key career growth attributes like dedication, consistency, proactivity, resilience, adaptability, positivity, hard work, etc. and wealth generation experts amongst other keynote speakers.

    “I hereby use this opportunity to invite members of the general public, especially the young, vibrant and enterprising and the larger social community to join us at Social Media Week Lagos 2019, as we promise all our guests a very enriching interaction and engagement,” Sanni said.

     

     

     

     

     

  • Telcos: we’re not liable for stolen funds via mobile network

    Telcos have said they are not liable for any cash stolen by fraudsters riding on their networks.

    Acting under the aegis of Association of Licensed Telecoms Companise of Nigeria (ALTON),  they advised bank cutomers to hold their banks responsible for any money lost to cyber crooks using mobile phones.

    Speaking in Lagos during the last Industry Consumer Advisory Forum (ICAF) organised by the Nigerian Communications Commission (NCC), the group’s Executive Secretary, Gbolahan Awonuga said the lenders should set up a 24/7 customer help line for customers to lodge complaints, adding that the lenders should also ensure prompt response.

    Awonuga, who represented the Chairman of the group, Gbenga Adebayo, said the group is worried at the increasing spate of frauds being perpetrated through the telecoms network and urged stakeholders in the industry to come out with solutions to tackle the menace.

    Reacting to the problem, Deputy Director, Consumer Affairs Bureau at NCC, Philip Eretan, said the use of telecoms infrastructure to defraud bank customers is a big challenge facing the regulator.

    He said fraudsters have turned to the mobile network to swindle people of their hard-earned cash.

    He warned bank and telecoms customers to be extremely careful in sharing their bank details with charlatans who will pretend as if they were officials of the banks.

    He gave the warning against the backdrop of an increase in the case of Subscriber Identity Module (SIM) card swap, which he said has become alarming.

    Eretan, however, assured that the NCC and the Central Bank of Nigeria (CBN) were working together to address the issue, lamenting that crimes move faster than investigation.

    Earlier on, Mr A. Akande of the Advertising Practioners Council of Nigeria (APCON) complained about unsolicited adverts on his mobile phones.

    He cited an advert on a certain phone number, which took him to a website which he later found out was in Ghana.

    He said he called the phone number and someone in Enugu, Enugu State, picked his call and compalined to him that fraudstsers have been using his phone number to to perpetrate fraud.

    He wanted to know what the NCC was doing about situation like this, especially when SIM cards are supposed to be registered.

    NCC’s Deputy Director, Consumer Affairs, Ismail Adedigba, who responded, regretted that the elite hardly read local newspapers nor listen to local channels.

    He said if people in the elite class were not watching CNN, they were reading a foreign newsmagazine.

    He said the NCC has done so much in sensitising the subscribers across the country through its Consumer Outreach Programmes, monthly Telecoms Consumer Parliament, Town Hall Meetings and others, adding that the Commission has put in place several measures in place to protect the consumers.

  • Glo sponsors Special athletes to Olympics

    Globacom is sponsoring three members of the Nigerian team to the next Special Olympic World Summer Games slated for Abu Dhabi, capital of the United Arab Emirates (UAE), between March 14 and 21.

    Nigeria will join other 171 countries to compete for medals in track and field events, featuring athletes with intellectual disabilities; among them being those with autism, down’s syndrome and several forms of learning disorders.

    The beneficiaries who received their cheques at  brief presentation event held at the Globacom headquarters in Lagos are  Miss Tejumola Ogunlela, aquatics; Chima Maduakor – Track and field; Oyinkansola Givens Joseph – Badminton. Glo’s largesse is meant to cater for the cost of training  and travel for the individual athletes.

    Presenting the cheques to the athletes, its Executive Director, Legal Services, Mrs. Gladys Talabi, said the telco had also sponsored two members of the successful Nigerian Contingent to the Special Olympics in 2011. That contingent returned from Athens in Greece with a total of 27 medals comprising nine gold, nine silver and nine bronze medals.

    Talabi said the telco was again sponsoring this year’s participation because the games are meant to improve lives of the special children, helping them  to reach their full potential, and to create greater social inclusion for people with intellectual disabilities.

    She commended the athletes for their determination in the face of disability. She said it was not compulsory that the team should win medals, saying that the fact that they were bold enough to dare despite of their challenges was victory on its own.

  • Robotics, drone expenditure to hit $115.7b this year

    Robotics systems’ service spending will be spread across systems integration, application management and hardware deployment, the International Data Corporation (IDC) has said.

    Robotics systems’ service spending will be spread across systems integration, application management and hardware deployment, says IDC.

    This is according to the Worldwide Semiannual Robotics and Drones Spending Guide, conducted by data analytics firm IDC.

    The report predicts global spending on robotics systems and drones will reach $210.3 billion by 2022, with a compound annual growth rate (CAGR) of 20.2 per cent.

    “Robotics systems will be the larger of the two categories throughout the five-year forecast period, with global robotics spending forecast to reach $103.4 billion in 2019, while drones will total $12.3 billion. Robotics systems will be dominated by hardware purchases, with nearly two-thirds of all spending going towards robotic software systems, after-market robotics hardware, and system hardware,” notes IDC.

    Purchases of industrial robots and service robots will account for nearly 30 per cent of the category total in 2019. Robotics-related software spending will largely go towards purchases of command and control applications and robotics-specific applications, according to IDC.

    Discrete manufacturing will be responsible for nearly half of all robotics systems spending worldwide in 2019, generating $50.2 billion in revenue. The next largest industries for robotics systems, notes the report, will be process manufacturing, resource industries, healthcare and consumers.

    Research Director of Worldwide Robotics at IDC, Dr Jing Bing Zhang, said: “Industrial robotics continue to top the technology investment priorities of manufacturing organisations across all major markets surveyed by IDC in 2018.

    “While the looming trade war between the US and China is likely to dampen the market growth slightly in the near term, we expect the growth trend to pick up from 2020 onward.”

    Services spending, according to the report, will be spread across several segments, including systems integration, application management, and hardware deployment and support. Software spending is forecast to grow at a slightly faster rate (21.7 per cent CAGR) than services (19 per cent CAGR) or hardware (18.2 per cent CAGR) spending.

    Investments in drones will total $12.3 billion in 2019, but are forecast to grow at a faster rate (30.6 per cent CAGR) than robotics systems (18.9 per cent CAGR) by 2022, according to the report.

    IDC predicts industry spending on drones in 2019 will be led by utilities ($1.4 billion), construction ($1.05 billion) and discrete manufacturing ($913 million). The industries that will experience the fastest growth in drone spending over the five-year forecast period will be federal/central government (56per cent CAGR), education (51 per cent CAGR), and retail (42.01 per cent CAGR).

    research manager, Customer Insights & Analysis, Stacey Soohoo, said: “The market is working to simplify the use and integration of drones with efforts ranging from enabling new drone applications through improved technological capabilities to understanding the regulatory implications of drones and the viability of these applications.

    “Drones are developing new skills, coupling 3D mapping and fully autonomous navigation capabilities with rapid improvements in battery performance and air-traffic management systems. Drone adopters continue to search for a safe, cost-efficient and repeatable drone solution that can be easily implemented in a variety of situations and use cases.”

    Drone software spending will primarily go to command and control applications and drone-specific applications, while services spending will be led by education and training and will see the fastest growth (35.9 per cent CAGR) over the five-year forecast, followed by software (33.9 per cent CAGR) and hardware (301 per cent CAGR).

  • Fed Govt shops for private sector investment in ICT Park

    THE Federal Government has started shopping for private sector investment for the actualisation of Abuja National ICT Park.

    It said the Park will create a platform for the acquisition of ICT knowledge, appropriate initiatives, incubating tech ideas into viable startups, research and development, testing and certifications of ICT solutions in Nigeria.

    The Minister of Communications, Dr. Adebayo Shittu who spoke during a Business Roundtable for the Financing of the National ICT Park at the Abuja Technology Village, in  Lagos at the weekend, said ICT/Telecom industry is key to the economy and an avenue for the youthful population and consumers to unlock the potential in the sector through policies and programmes that have the capacity to boost the economy in collaboration with stakeholders.

    Shittu said the objective of the meeting was to appraise the major stakeholders and the private companies operating in the ICT ecosystem of the Ministry’s plan to establish ICT Park and to solicit their cooperation and support towards its success, execution, and operationalisation of the project.

    He noted that ICT Park projects are capital intensive hence the need for industry stakeholders to partner Ministry of Communications to establish the project in order to bridge the practical skills gap that exists between the academia and the industry.

    He said: “The collaboration between the Ministry of Communications and Abuja Technology Village (ATV), had led to a 6344sqm of commercial land earmarked for the establishment of a National ICT Park within the free trade zone owned and operated by the ATV.”

    He added that the event will give insight into ATV free trade zone; showcase the conceptual model of the proposed National ICT Park, present investment and partnership opportunities to venture capitalist, academic institutions, business angels, investment bankers and development partners.

    Shittu said the project is part of government’s preparation for the 4th Industrial Revolution, which is predicted to happen globally in the near future noting that the establishment of the centre will encourage investment in the ICT sector and complement the proposed ICT university which will also produce the required skilled manpower for Africa to partake in the 4th Industrial Revolution.

    In his words “ICTs are essential in driving entrepreneurship, innovation and economic growth as well as building strong interface between the academia and the industry, and we want industry participation and synergy on this project that will be of immense benefit to the ICT ecosystem be it the student community, the academia, and the industry”.

    He said the country badly needed adequate pool of qualified manpower to sustain the growth of the ICT sector noting that Government, together with the private sector, is implementing a series of training programmes to disseminate ICT literacy and usage in all spheres of activities across the country.

    Shittu stated that establishment of the park will further facilitate digital capacity building for immediate employment, entrepreneurial skills development, job and wealth creation as well as promoting the digital economy in an era of disruptive technology through effective regulations.

    In her remarks, the Managing Director, Abuja Technology Village, Ms. Hauwa Yabani pointed out that the village was established to serve as a catalyst and desire transformation of Nigeria as knowledge-based economy adding that the park is strategically located and focus on energy, ICT and biotechnology.

    In his presentation, the Managing Director, Rack Centre, Dr Ayotunde Coker, expressed that there should be comprehensive cloud and content distribution ecosystem noting that every country on Atlantic coast of Africa is directly connected by Fibre and direct high-speed fibre connectivity.

    He said technology village funding model should encompass the provision of core infrastructure, power, and tax incentives for investment, exercise duties concessions and input cost concessions.

     

     

     

  • Apple cuts forecast amid China market slump

    Apple has lowered its revenue guidance from $93 billion to $84 billion, ahead of its earnings call scheduled for 29 January.

    In a letter to investors, CEO Tim Cook says: “Today we are revising our guidance for Apple’s fiscal 2019 first quarter, which ended on December 29. We now expect the following: revenue of approximately $84 billion, gross margin of approximately 38 per cent, operating expenses of approximately $8.7 billion, other income of approximately $550 million, and tax rate of approximately 16.5 per cent before discrete items.

    “Based on these estimates, our revenue will be lower than our original guidance for the quarter, with other items remaining broadly in line with our guidance,” says Cook.

    “While it will be a number of weeks before we complete and report our final results, we wanted to get some preliminary information to you now. Our final results may differ somewhat from these preliminary estimates,” he adds.

    “When we discussed our Q1 guidance with you about 60 days ago, we knew the first quarter would be impacted by both macroeconomic and Apple-specific factors. Based on our best estimates of how these would play out, we predicted that we would report slight revenue growth year-over-year for the quarter. As you may recall, we discussed four factors:

    “First, we knew the different timing of our iPhone launches would affect our year-over-year compares. Our top models, iPhone XS and iPhone XS Max, shipped in Q4’18 – placing the channel fill and early sales in that quarter, whereas last year iPhone X shipped in Q1’18, placing the channel fill and early sales in the December quarter. We knew this would create a difficult compare for Q1’19, and this played out broadly in line with our expectations.

    “Second, we knew the strong US dollar would create foreign exchange headwinds and forecasted this would reduce our revenue growth by about 200 basis points as compared to the previous year. This also played out broadly in line with our expectations.

    “Third, we knew we had an unprecedented number of new products to ramp during the quarter and predicted that supply constraints would gate our sales of certain products during Q1. Again, this also played out broadly in line with our expectations. Sales of Apple Watch Series 4 and iPad Pro were constrained much or all of the quarter. AirPods and MacBook Air were also constrained.

    “Fourth, we expected economic weakness in some emerging markets. This turned out to have a significantly greater impact than we had projected. In addition, these and other factors resulted in fewer iPhone upgrades than we had anticipated. These last two points have led us to reduce our revenue guidance. I’d like to go a bit deeper on both.

    Cook says while Apple anticipated some challenges in key emerging markets, the company did not foresee the magnitude of the economic deceleration, particularly in Greater China.

    “In fact, most of our revenue shortfall to our guidance, and over 100 per cent of our year-over-year worldwide revenue decline, occurred in Greater China across iPhone, Mac and iPad.”

    He points out that China’s economy began to slow in the second half of 2018. “The government-reported GDP growth during the September quarter was the second lowest in the last 25 years. We believe the economic environment in China has been further impacted by rising trade tensions with the US.

    “As the climate of mounting uncertainty weighed on financial markets, the effects appeared to reach consumers as well, with traffic to our retail stores and our channel partners in China declining as the quarter progressed. And market data has shown that the contraction in Greater China’s smartphone market has been particularly sharp.”