Dixons Carphone shares plunge 30% as Brexit hits phone retailers
Dixons Carphone has warned of a steep decrease in profits this year, as customers now put off upgrading their current mobile devices and instead opt for cheaper, SIM-only plans.
The news prompted share prices to drop by 30% to £1.61 - which means that it has decreased by half in total in this year alone.
A weaker pound, caused by the vote to leave the European Union back in 2016, has caused the price of mobile devices to rise; customers, as a result, have been put off buying the latest handheld and are instead choosing to stick with their current device for an extra four to six months.
Dixons - who own Carphone Warhouse, Currys and PC World - has said it now expects profits to drop from around £501mn ($642mn) to between £360mn-£440mn, signalling a drop in the predicted profits of £55mn.
Chief executive Seb James commented: "Currency fluctuations have meant that handsets have become more expensive whilst technical innovation has been more incremental."
The EU's move to abolish data roaming charges will also come at a price to Dixons, who estimate that the ruling will cost them around £40mn after it came into effect in June 2017.
However, there is hope as the iPhone 8 is expected to eclipse sales of the most recent incarnation of the popular Apple mobile, the iPhone 7.
"We're anticipating that iPhone 8 launch will be much better, maybe not as good as the iPhone 6, but more like the same numbers as the iPhone 6S, as opposed to the disappointing sales of the iPhone 7."
"This is just simply because we believe the iPhone 8 to be a much better phone than the current version."
Bukalapak raises $1.5bn in record Singapore IPO, say sources
Bukalapak, currently the fourth largest Indonesian ecommerce company, is said to have raised $1.5 billion in the first IPO by an Indonesian tech unicorn.
Three unidentified, but likely reliable, sources told Reuters the order books for Bukalapak’s IPO were covered by multiples, with one source claiming the issue attracted more than $6 billion in demand despite being listed at the top of its indicated price range.
Bukalapak's 50x growth
Bukalapak was looking to raise just $300 million just a few months ago. The figure grew to $800 million before rising to $1.5 billion as investors jockeyed for a piece of the company.
Covid-19 has had a positive impact on many ecommerce operators, and Bukalapak also has strong investment lines via Singapore sovereign investor GIC and Microsoft, among others. The company focuses on micro, small and medium-sized enterprises.
Indonesia is Southeast Asia’s biggest economy.
Indonesia’s four biggest ecommerce companies
Tokopedia is an Indonesian technology company specializing in e-commerce. It was founded in 2009 by William Tanuwijaya and Leontinus Alpha Edison.
Shopee was first launched in Singapore in 2015, and later expanded its reach to Malaysia, Thailand, Taiwan, Indonesia, Vietnam, the Philippines, Brazil, Mexico, Chile, and Colombia.
Lazada is a Singaporean multinational technology company which focuses mainly on e-commerce. Founded by Maximilian Bittner with the backing of Rocket Internet in 2012, it is currently owned by the Alibaba Group after its acquisition in 2016.
Bukalapak is an Indonesian e-commerce company. It was founded in 2010 as an online marketplace to enable small and medium enterprises go online and has expanded to support smaller traditional family owned businesses.