World smartphone shipments to fall 12 percent this year on virus woes: IDC

Global smartphone shipments will fall nearly 12 percent to 1.2 billion units in 2020, market research firm IDC said on Wednesday, citing lower consumer spending due to the economic impact of the coronavirus crisis.

The COVID-19 pandemic has not only disrupted business supply chains, with major smartphone makers such as Apple Inc and Samsung Electronics Co Ltd flagging financial hits, but also squeezed consumer spending worldwide.

"Nationwide lockdowns and rising unemployment have reduced consumer confidence and reprioritized spending towards essential goods, directly impacting the uptake of smartphones in the short term", said Sangeetika Srivastava, senior research analyst with IDC.


Apple, which was forced to shut retail stores in the United States and Europe following the outbreak, introduced discounts on the iPhone 11 in China and released a new low-price SE model to weather a plunge in global smartphone demand.

Research firm TrendForce said in April it expected global smartphone production to slump a record 16.5 percent in the June quarter from a year earlier.

That follows a 10 percent drop in output worldwide in the March quarter, when the outbreak spread and peaked in China before sweeping through Europe and the United States.

However, shipments from China's factories to vendors rose 17% in April from a year earlier, suggesting signs of an early rebound in domestic demand in the world's largest smartphone market.

In China, where the economy has begun to reopen and factories have resumed operations, IDC expects a single-digit decline in this year.

The research firm also expects upcoming 5G deployment to help the recovery of smartphone shipments next year, adding it does not expect growth to return until the first quarter of 2021.

-reuters-

Huawei reviewing FedEx relationship, says packages ‘diverted’

HONG KONG - Chinese telecoms equipment maker Huawei is reviewing its relationship with FedEx Corp after it claimed the US package delivery company, without detailed explanation, diverted two parcels destined for Huawei addresses in Asia to the United States and attempted to reroute two others.

Huawei told Reuters on Friday that FedEx diverted two packages sent from Japan and addressed to Huawei in China to the United States, and attempted to divert two more packages sent from Vietnam to Huawei offices elsewhere in Asia, all without authorisation, providing images of FedEx tracking records.

Reuters could not verify the authenticity of the records. Shown the images of the tracking records, FedEx declined to make any comment, saying company policy prevented it from disclosing customer information.

Huawei said the four packages only contained documents and "no technology," which Reuters was unable to independently confirm.

Huawei declined to elaborate on why it thought the packages were diverted. Reuters was given no evidence the incident was related to the U.S. government's move to place Huawei and its affiliates on a trade blacklist in mid-May, effectively banning US firms from doing business with them on security grounds.

"The recent experiences where important commercial documents sent via FedEx were not delivered to their destination, and instead were either diverted to, or were requested to be diverted to, FedEx in the United States, undermines our confidence," Joe Kelly, a spokesman for Huawei, told Reuters.

"We will now have to review our logistics and document delivery support requirements as a direct result of these incidents," the spokesman said.

Huawei acknowledged to Reuters that one package originating in Vietnam was received by Friday, and the other was on its way, according to FedEx tracking records provided by Huawei.

FedEx spokeswoman Maury Donahue told Reuters the packages were "misrouted in error" and that FedEx was not requested to divert them by any other party.

"This is an isolated issue limited to a very small number of packages," said FedEx, referring to the four parcels affected. "We are aware of all shipments at issue and are working directly with our customers to return the packages to their possession."

The US Department of Commerce did not reply to a request for comment on whether the incident might be related to its move on May 16 to add Huawei to the so-called "Entity List," preventing it buying certain items from US companies without US government approval.

FORMAL COMPLAINT

The United States believes Huawei, the world's largest telecom network gear maker leading the way in creating the next generation of wireless networks known as 5G, is a potential espionage threat because of its close ties with the Chinese government.

Huawei has repeatedly denied it is controlled by the Chinese government, military or intelligence services.

The issue has become a flashpoint in an escalating trade battle between the world's two biggest economies.

The two packages sent on May 19 and May 20 from Tokyo, intended for Huawei in China, ended up in Memphis, Tennessee, the headquarters of the US company, by May 23, according to images of FedEx tracking records shown to Reuters by Huawei.

The two packages originating from Hanoi on May 17, destined for Huawei's Hong Kong and Singapore offices, were held up after arriving in local FedEx stations in Hong Kong and Singapore on May 21 for "delivery exception," according to other images Huawei showed Reuters.

According to FedEx's website, the status "exception" means an unexpected event is preventing delivery of a package, for example a customs delay, a holiday, or no one being available to accept delivery. FedEx declined to give details on what the exception was in this case.

According to Huawei, a FedEx customer service representative in Vietnam replied to their inquiry on May 22 when two expected packages did not arrive on time, saying: "Please be informed that FDX SG received notification from FDX US to hold and return the package to US. Hence, the shipment is not deliver to consignee and now being hold at FDX station and under process to RTS it (return to sender)," the representative wrote in broken English, according to an email Huawei showed to Reuters.

Huawei told Reuters that both Vietnam packages were sent by its shipping agent, a contractor to Huawei whom it did not identify, and contained urgent documents. It said the shipping agent refused permission for FedEx to send the packages to the United States and instructed they be returned, Huawei told Reuters. Reuters could not confirm that.

Huawei told Reuters it only learned that the Japan-originated packages, which were sent by suppliers that it did not identify, had been diverted to the United States after checking FedEx's tracking record.

The company said it has lodged a formal complaint with China's postal regulator, which it said is investigating the incident. China's State Postal Bureau did not return a request for comment. 

source: news.abs-cbn.com

Samsung considers Galaxy Note 7 recall: source

SEOUL - Tech giant Samsung Electronics Co. Ltd. is considering a recall of its new flagship Galaxy Note 7 devices amid reports that some of the premium phones are catching fire due to battery problems, a person familiar with the matter said on Friday.

The person, who declined to be identified as the deliberations were not yet finalized, told Reuters the firm had not decided specifics such as the timeline for a potential recall or how many phones could be affected.

Samsung declined to comment on any recall plan for the high-end gadget, which has been the subject of online complaints from users claiming their phones had caught fire while charging.

While analysts expect the Note 7 problems to be resolved quickly, ongoing major problems could derail Samsung's mobile recovery after a string of product successes had reversed the smartphone leader's declining market share.

The South Korean firm has pinned its hopes on the Note 7 to maintain strong sales momentum in the second half against stiffening competition from the likes of Apple Inc, which is expected to release its latest iPhone next week.

"They need to nip it in the bud right now. The last thing they want is for memes to be spreading on the internet associating the Samsung name with an exploding battery or injury," IDC analyst Bryan Ma said.

On Wednesday Samsung said it had halted supply of the new phone to the top three South Korean carriers and that shipments were being delayed as it conducted additional quality testing.

It did not elaborate on any problems it may have found with the gadget, which was launched in South Korea and other markets on Aug. 19 and has been generally well-received by critics.

Investors stripped about $7 billion off Samsung Electronics' market value in response to the shipment delays on Thursday, but sentiment appeared to have recovered in Friday trading. The shares were up 0.3 percent compared with a 0.1 percent rise for the broader market.

SHIPPING DELAYS

South Korea's Yonhap News Agency reported separately that Samsung Electronics had pushed back the Note 7's launch in key European markets such as Britain and France. Shipments to the United States appear to have halted as well, Yonhap said, without citing a direct source.

Samsung said in a statement to Reuters it was "conducting a thorough inspection" with its partners on the Note 7 and would share its findings as soon as possible. The company did not immediately comment on Yonhap's report.

Credit Suisse said a recall or major shipping delays could wipe 1.5 trillion won ($1.34 billion) off the firm's 2016 operating profit estimate of 30.2 trillion won.

But the brokerage said this was the "absolute worst case" scenario and was unlikely to materialize, as it expected the firm to resolve issues with the phone before the fourth quarter.

Hyundai Securities also said in a report released on Thursday that the Galaxy Note 7's problems should be resolved within a "few weeks". The brokerage retained its third-quarter operating profit forecast of 8.5 trillion won.

source: www.abs-cbnnews.com

Oil and shipping markets on edge after South China Sea ruling

SINGAPORE - Global oil and shipping markets reacted nervously on Tuesday after an international arbitration court ruled against Beijing's claims across large swathes of the South China Sea, fuelling geopolitical tensions in the vital waterway.

A tribunal in The Hague, Netherlands, found China had breached the sovereign rights of the Philippines and had no legal basis to its historic claims in the South China Sea, a major shipping lane between Europe, the Middle East and Africa.

The ruling will be seen as a victory by other regional claimants such the Philippines and Vietnam, but with China rejecting the ruling and saying its military would defend its sovereign rights, nerves were on edge.

Although shippers and oil traders said they did not expect an immediate impact on shipping as a result of the ruling, oil prices jumped following the findings. Brent crude futures were up over $1, or more than 2 percent, to $47.60 per barrel at 1110 GMT.

"It is vital that merchant ships are allowed to go about their lawful business on the world’s oceans without diversion or delay. We will of course be monitoring for any interference in the coming weeks," said Peter Hinchliffe, Secretary General of the International Chamber of Shipping in London.

The deep waters of the South China Basin between the Spratly and also-disputed Paracel Islands are the most direct shipping lane between northeast Asia's industrial hubs of China, Japan and South Korea and Europe and the Middle East.

The geography of the region offers few economically viable alternative routes for large oil tankers or dry-bulk ships and container ships.

Esben Poulsson, president of the Singapore Shipping Association, said any actions that restricted the right of innocent passage and freedom of safe navigation for merchant shipping would potentially drive up shipping costs, resulting in a detrimental impact on maritime trade.

Reuters shipping data shows that, counting just Very Large Crude Carrier (VLCC) super-tankers, some 25 VLCCs are passing between the disputed Spratly and Paracel islands at any time, with enough capacity to carry the equivalent of about 11 days' worth of Japanese demand.

Some industry participants were more relaxed, however.

"It's just pure politics," Ralph Leszczynski, head of research at ship broker Banchero Costa said.

"China will simply ignore it, and it will not change in any way the reality on the ground. All there is at stake is access to offshore oil and gas deposits and perhaps fishing grounds," he said.

Insurers said costs were unlikely to rise in the short term.

"We don’t currently foresee any increase in insurance costs as a result of the ruling and would be surprised to see operators being penalized by the insurance market for trading in this area,” said Andrew Brooker, founding partner, at Hong Kong marine insurance broker’s Latitude Brokers.

Neil Roberts, manager of marine underwriting at the Lloyd’s Market Association, said the South China Sea is not listed by the LMA’s joint war committee which highlights insurance hotspots.

"Unless it is there would be no prospect of premiums rising," Roberts told Reuters. “The shallow waters and numerous reefs in the Spratly island region means that commercial shipping is unlikely to be sailing within the territorial waters of any of the islands.”

source: www.abs-cbnnews.com

Amazon dips toes into maritime shipping

SAN FRANCISCO, United States - Amazon said Friday it has taken the first steps to begin maritime shipping operations, adding to its already vast arsenal of logistical operations.

The company confirmed to AFP that it had registered with US Federal Maritime Commission to operate via a Chinese subsidiary Beijing Century Joyo Courier Service.

The news was first reported by the shipping blog Flexport, which called it "Amazon's first step toward entering the $350 billion ocean freight market."

By operating its own maritime shipping, Amazon could improve its ability to move goods into the company's logistics network, the blog noted.

"We don't have anything to share beyond confirming that the filing occurred," Amazon spokeswoman Kelly Cheeseman said.

Amazon has already announced it hopes to be able to use drones to deliver goods to customers upon winning regulatory approval.

It has also confirmed plans to acquire all shares of French delivery group Colis Prive, which could help reduce its reliance on outside shippers such as Fedex and UPS.

source: www.abs-cbnnews.com

Now you can track your 'balikbayan box' online

MANILA, Philippines - Waiting for the balikbayan box your relatives sent from abroad? Now you can find out the package's status through an online tracker launched by the Bureau of Customs.

On Tuesday, the BOC launched an online tracker where recipients of balikbayan boxes can check on the status of their packages.

The online tracker can be found on the BOC Balikbayan Box Tracker microsite.

The tracker contains information on all balikbayan box shipments lodged with the Bureau, including its country of origin, Bill of Lading (BL) number, name of the foreign forwarder, name of the local forwarder/broker, date entry filed, date cleared, and current status.

To track the shipment of your balikbayan box, the recipient should know the name of the forwarder and the BL number.

"This is our way of helping our kababayans find their boxes when they encounter problems. We have received several complaints from OFW families blaming BOC for lost boxes. With this tracker, the public will not be given the run-around by people responsible for delivering their balikbayan boxes," Customs Commissioner John P. Sevilla said.

While you can now track your balikbayan box, it is still likely that packages that were sent in October or November would arrive by early 2015 due to the port congestion. Cargo forwarders earlier said only balikbayan boxes sent on or before August will make it this Christmas.

Less complaints?

The Department of Trade and Industry said it expects the online tracker to lessen consumer complaints on loss, non-delivery and pilferage of balikbayan boxes.

"The tracker can serve as a venue for accredited Philippine sea freight forwarders to police their own ranks and prevent questionable acts and dealings,” said Trade Undersecretary Victorio Mario A. Dimagiba.

The DTI urged Filipinos to contract services of cargo forwarders accredited by the Philippine Shippers Bureau. The list can be found in the DTI website.

The DTI also warned OFWs to be wary of cargo forwarders offering services at fees that are way below or way above current industry rates.

An estimated 5.5-million balikbayan boxes are sent to the Philippines each year, about 40 percent of which arrive in the months leading to Christmas season.

source: www.abs-cbnnews.com