Emerging Markets Daily - February 3
Turkey Inflation Hits Near 2-Decade High, Apple Registers Record Sales in India, South Korea Stocks Pop, SABIC Posts Massive Profits, Amazon Inks 'Nollywood' Deal
The Top 5 Stories Shaping Emerging Markets from Global Media - February 3
Turkey Inflation Hits Highest Level in Nearly Two Decades
Financial Times
“Official inflation in Turkey has reached the highest level since Recep Tayyip Erdogan’s ruling party came to power almost two decades ago, as global inflationary pressures combined with the president’s unorthodox economic management fuel a surge in prices.”
“The country’s consumer price index rose 48.7 per cent year on year in January, the Turkish Statistical Institute said, up from 36 per cent in December. The figure, announced just days after Erdogan sacked the statistics agency’s head, was in line with the expectation of economists, according to a survey by Bloomberg — although opposition parties and some economists claimed it was far lower than the country’s true inflation rate.”
“The reading was driven by sharp rises in the cost of food, electricity and gas, and represents the highest official rate that Turkey has experienced since April 2002.”
“Erdogan, who was widely credited during his first decade in power with ushering in economic prosperity, has presided over repeated bouts of high inflation in recent years as he has consolidated his powers and meddled in monetary policy.” Laura Pitel reports.
Apple Hits Record iPhone Sales in India, but Chinese Brands - and Samsung - Still Dominant
Bloomberg and South China Morning Post
“Apple Inc. had its strongest quarter for iPhone sales in India yet, a sign the Cupertino, Calif.-based company is finally making progress in the world’s fastest-growing smartphone market.”
“Sales increased to 2.3 million units in the fourth quarter, up 34% from a year earlier, according to numbers from the market research firm Counterpoint. China’s Xiaomi Corp. and South Korea’s Samsung Electronics Co. sold 9.3 million and 7.2 million smartphones for the quarter respectively, leading in terms of units.”
“Apple appears to have pulled in more revenue than any of its rivals, however, because of the iPhone’s high price tag, according to Counterpoint’s calculations. The U.S. company took in an estimated $2.09 billion for the quarter, edging aside Samsung with revenue of about $2 billion.” Saritha Rai reports for Bloomberg.
“Meanwhile, Josh Ye of the South China Morning Post reports: “The smartphone market in India recorded record revenue and shipments last year despite ongoing supply constraints, with Chinese smartphone giant Xiaomi Corp leading the pack, according to a new report by research firm Counterpoint.”
“Chinese brands accounted for four of the top five smartphone brands in India last year. Xiaomi had a 24 per cent share of total shipments in the country in 2021, followed by Samsung at 18 per cent, according to the report, which was released this week. China’s Vivo was the third-largest player with a 15 per cent share, followed by Chinese brands Realme and Oppo.”
“Xiaomi achieved 258 per cent growth in the premium smartphone segment, which comprises devices priced above 30,000 Indian rupees (US$400).”
“India’s smartphone market revenue crossed US$38 billion in 2021 with 27 per cent year-over-year growth, according to the report. The high growth in India’s smartphone market was a result of ‘promotions and discounts, as well as better financing options’, according to Counterpoint.”
“The strong growth of Chinese phone makers in India comes despite rising tensions between the two countries in recent years. New Delhi has rolled out a multitude of measures to bolster the home-grown tech industry and there was also a consumer backlash against Chinese firms following several violent border disputes. But India remains heavily reliant on affordable and well-made consumer technology products supplied by China.”
South Korea Stocks Pop, Hitting Highest Level in More Than 2 Months
Singapore Business Times/Reuters
“South Korean shares jumped the most in more than 2 months, with the market tracking a rally in global equities on Thursday (Feb 3), as investors welcomed data that signalled the country's factory activity grew at the sharpest pace in 6 months. The Korean won weakened, while the benchmark bond yield fell.”
“The benchmark Kospi was up 44.52 points, or 1.67 per cent, at 2,707.86, the sharpest gain since last December. Among the heavyweights, technology giant Samsung Electronics traded flat and peer SK Hynix rose 2.9 per cent, while LG Chem climbed 5.95 per cent and Naver advanced 3.39 per cent.”
“Easing of market volatility over the national holiday period led to Monday's rise as local shares tracked gains on the Wall Street in the past few days, said Lee Kyoung-min, an analyst at Daishin Securities.”
“South Korea's factory activity grew at the sharpest pace since last July as output and new order picked up, but persistent supply chain woes weighed on the outlook, a private-sector survey showed on Thursday.” Business Times/Reuters report.
Saudi Chemical Giant SABIC Reports Massive 2021 Profit
Arab News
“Saudi chemical giant SABIC reported a massive increase in net profit in 2021 of 32,800 percent, according to a bourse filing. Profits skyrocketed to SR23 billion ($6.13 billion) last year, compared to SR70 million a year earlier.”
“The Riyadh-based company attributed the rise to higher average selling prices as well as an increase in its share in joint ventures and subsidiaries. This was in line with over a 49 percent jump in revenues to hit SR175 billion in the same period, and the profit per share went up from SR0.02 to SR7.68.”
“In the fourth quarter, profits were up by 119 percent from a year ago. As most Saudi stocks saw price corrections in the previous trading session, shares in SABIC edged 0.5 percent lower.” Arab News reports.
Amazon Targets ‘Nollywood’ in Production Deal
African Business
“In 2010, Lagosian lawyer Zulumoke Oyibo studied the screenwriting book Story by Robert McKee, together with three friends in finance and marketing who shared a passion for writing and cinema. Meeting up frequently to discuss each chapter, the friends soon decided to found Inkblot Productions and try their hands at film-making.”
“A web series and debut film flopped after they dug into their own pockets while securing funding from family members, a government grant and a smattering of investors, but despite these early setbacks, the Nigerian production house persisted.”
“Inkblot gained critical success in 2016 when they premiered their films The Arbitration and The Wedding Party at the Toronto International Film Festival, and in December last year, they celebrated their 10-year anniversary during the same week that they announced an exclusive multi-year licensing agreement with Amazon Prime Video.”
“The deal – Amazon’s first of its kind in Africa – represents the global streaming video on demand (SVOD) giant’s first salvo as they compete with market leader Netflix, and regional players Showmax and myCanal for eyeballs on the continent…”
“…Driven by a growing middle class in its cities, and investment from global cinema giants like IMAX, Nigeria now hosts 77 cinemas, up from just 45 in 2019 – serving a population of approximately 210m – according to Statista, a market research firm.”
“The Wedding Party, a romantic comedy about an insecure bride and her reformed playboy groom following an accidental proposal, broke box office records on its theatrical release, grossing N453m ($1.2m) at cinemas in Lagos, Abuja, and at other screens around the country.”
“The gangster comedy film Omo Ghetto: The Saga smashed records in 2020 for SceneOne Productions, despite restricted cinema numbers because of Covid protocols, grossing $1.6m at the box office.” Will McBain reports.
“Sometimes the wrong train takes you to the right destination,” Sajaan, from the Indian film, the Lunch Box.