Breaking news

Cyprus Interest Rates Reflect Downward Shift Amid ECB Rate Cuts

by THEFUTURE.TEAM

January 17, 2025

Interest rates in Cyprus experienced a general decline in November 2024, mirroring recent rate reductions by the European Central Bank (ECB), according to data from the Central Bank of Cyprus (CBC). However, disparities persist among local financial institutions, with Cyprus continuing to report borrowing rates above and deposit rates below the Eurozone average.

Mortgage Lending: Small Gains For Borrowers

In the mortgage market, the average variable interest rate for home purchases in Cyprus edged down to 4.50% in November from 4.62% in October. Comparatively, the Eurozone average fell to 4.27% from 4.37%. Rates for new variable loans varied widely among Cypriot banks. The Bank of Cyprus recorded the highest rate at 5.20%, followed by Astrobank at 4.85% and Eurobank Cyprus at 4.54%. On the lower end, the Housing Finance Corporation offered 3.53%, and Ancoria Bank provided 3.78%. For renegotiated loans, rates were notably divergent, with the Bank of Cyprus at 5.48% and Eurobank Cyprus offering a significantly lower rate of 2.35%.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Corporate Loans: Mixed Trends Across Loan Sizes

For corporate loans under €1 million, average rates fell to 5.01% in November from 5.45% in October, while the Eurozone average dipped to 4.74%. Among Cypriot banks, Banque SBA led with the highest rate at 7.54%, while Hellenic Bank and Ancoria Bank offered the lowest rates at 4.55% and 4.35%, respectively. In renegotiations, Hellenic Bank stood out with a rate of 3.42%, the lowest in this category.

Conversely, loans above €1 million saw an increase in rates. The average rate in Cyprus rose to 4.97% from 4.72%, diverging from the Eurozone, where rates decreased to 4.38%. Banque SBA recorded the highest rate at 7.52%, with Hellenic Bank at 6.55%. Lower rates were observed at the Bank of Cyprus (5.07%) and Societe Generale Bank Cyprus (5.15%). For renegotiated large loans, Hellenic Bank offered the lowest rate at 3.29%, down from 4.40% in October.

Deposit Rates: A Steady Decline

Household deposit rates for term deposits up to one year dropped to 1.70% in November, down from 1.76% in October and 1.98% in September. The Eurozone average also fell, landing at 2.61% from 2.74%. Arab Jordan Investment Bank provided the highest household deposit rate at 3%, while the Bank of Cyprus and Hellenic Bank offered the lowest at 0.72% and 1.50%, respectively.

Corporate deposit rates saw a similar downward trend, with one-year term deposits averaging 1.99% in November, down from 2.19% in October. The Eurozone average remained higher at 2.90%. Astrobank led with the highest rate at 2.92%, followed by the National Bank of Greece at 2.54%. Meanwhile, the Housing Finance Corporation reported the lowest rate at 0.22%, alongside the Cyprus Development Bank, which offered 1.59%.

While the ECB’s monetary policy adjustments continue to influence Cyprus’ interest rates, the disparity between local and Eurozone averages highlights ongoing structural challenges. Borrowers and savers alike will need to navigate the

The Decline Of Smartwatches: A Turning Point In The Wearable Tech Industry

by THEFUTURE.TEAM

March 13, 2025

For the first time in history, the smartwatch market is facing a significant downturn. Shipments are expected to drop by 7% in 2024, marking a major shift in a segment that has been growing steadily for over a decade. A report by Counterpoint reveals that while Apple still holds the top spot, its dominance is being challenged by a surge from Chinese brands like Huawei, Xiaomi, and BBK. Even as the overall market struggles, some companies are thriving.

The Big Picture: Why Smartwatches Are Slowing Down

Apple’s flagship products have long been the driving force in the smartwatch market, but even the tech giant is feeling the pressure. The company’s shipments are projected to fall by 19% this year, though it will remain the market leader. Meanwhile, brands from China are capitalizing on the shift, with Huawei showing an impressive 35% growth in sales, driven by the booming domestic market and a broad range of offerings, including smartwatches for kids.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Xiaomi, too, is experiencing remarkable success, with a staggering 135% increase in sales. In contrast, Samsung is seeing more modest growth, up 3%, thanks to its latest Galaxy Watch 7 and Galaxy Watch Ultra series.

While some companies are succeeding, the broader market is facing headwinds. The biggest factor behind the overall decline is the slowdown in India, where consumer demand for smartwatches has stagnated. The segment is suffering from a lack of innovation and fresh updates, leaving many consumers with little incentive to upgrade their devices. Add to that market saturation, and it’s clear why many users are content with their current models. The Chinese market, however, is bucking the trend, showing 6% growth in 2024.

A Glimpse Into The Future

Looking ahead, the smartwatch market may begin to recover in 2025, driven by the increasing integration of AI and advanced health monitoring tools. As these technologies evolve, the industry could see a resurgence in demand.

Huawei’s Remarkable Comeback

Huawei’s impressive performance in the smartwatch space signals a broader recovery for the company, which has been hit hard by US sanctions. Once the world’s largest smartphone maker, Huawei’s business was decimated when it lost access to advanced chips and Google’s Android operating system in 2019. But in China, Huawei has maintained its dominance, with its market share growing to 17% in 2024.

This resurgence was partly driven by the launch of the Mate 60 Pro, a smartphone featuring a 7-nanometer chip developed in China. Despite US sanctions, the device surprised many with its capabilities, a testament to China’s rising investment in domestic semiconductor production.

In February, Huawei also unveiled its Mate XT foldable smartphone, the world’s first device to fold in three directions. Running on HarmonyOS 4.2, Huawei’s proprietary operating system, the phone further demonstrates the company’s resilience and ability to innovate despite international challenges.

Huawei’s smartwatch offerings are also catching attention, particularly the Huawei Watch GT 5 Pro, which launched in September of last year. With a premium titanium alloy design, a high-resolution AMOLED display, and impressive health tracking features, the GT 5 Pro has become a standout in the market, available to both Android and iOS users.

A Brief History Of The Smartwatch Revolution

The smartwatch market has had its fair share of milestones, but the real breakthrough came in 2012 with the Pebble, a Kickstarter-funded project that raised over $10 million. Pebble introduced the world to smartphone integration, app downloads, and long battery life, becoming the first truly mass-market smartwatch.

In 2013, Samsung entered the game with the Galaxy Gear, marking its first attempt at wearable tech. But it was Apple’s entry in 2014 that truly set the industry on fire. The Apple Watch’s sleek design, integration with iOS, and emphasis on health and fitness catapulted it to the top of the market, establishing a standard that many other brands would try to follow.

By 2021, the smartwatch industry had grown to over $30 billion in revenue, with annual growth reaching 20%. Yet now, it finds itself at a crossroads, with innovation stagnating and market saturation taking a toll.