10/09/2014 Asia Business Report

campaigning against independence. Now on BBC News, all the latest

business news live from Singapore. Apple launches its first new product

line since the iPad, and the death of its co`founder Steve Jobs. But is

it innovative enough? And we take you to the Chinese city where

business leaders are gathering for the start of this year's World

Economic Forum. Thank you for joining us for this edition of Asia

Business Report on BBC World News. I am Rico Hizon. There is certainly a

bit of a buzz around Apple this morning, after it unveiled its first

new product lines and the death of its co`founder Steve Jobs. There was

the Histon area during the launch of the much anticipated smartwatch,

which runs apps and acts as a health and fitness tracker, as well as the

iPhone to six. Despite this, it was a volatile trading day for Apple

shares, which closed down 37 cents on Wall Street. Still the launch of

the new iPhone is said to be a massive room for the company, and

those companies in Asia which manufactured components. Our

correspondent looks at one company looking to cash in. This company,

TSMC, is among many Taiwanese firms looking to earn billions of dollars

from the sales of the iPhone six. This building is one of three

centres with the capability of making a microchip processors for

the smartphone. TSMC was chosen to make the microprocessors after Apple

dropped its former supplier and main rival Samsung over fears that the

firm would steal its design. Local analysts say Taiwanese suppliers

which also make the casings and camera lens will make $80 to as much

as $150 for each iPhone sold. That is the biggest portion of all

components makers. Demand for the new iPhone is also expected to boost

Taiwan's exports by 2% monthly in coming months, and its GDP growth by

nearly half a percentage point. As a result, investment banks and the

government recently raised their projections for Taiwan's GDP growth

this year. From around 3% to around 3.5%. But the benefits of the new

iPhone could be short lived. Some of Apple's Taiwanese suppliers are

under scrutiny or their Chinese workers' wages and working

conditions, and their concerns that Taiwan's exports could revert to

very low growth as the iPhone launches are over by the end of this

year. Now the watch and the market is fiercely competitive, with many

companies making a head start on Apple. Our technology correspondent

was at the launch, and looks at how the Apple `` whether the Apple watch

it innovative enough to win over consumers. This was one of the most

hyped event of recent years, and lots of products were unveiled. By

Apple's Tim Cook, we had to make new iPhones with bigger screens, you

will remember years ago it said it wouldn't move to eager screens, but

has decided it was a good idea. A new payment system, where you can

pay with your mobile phone in a shop or online. But most attention was on

category entering the wearable tech category entering the wearable tech

knowledge area. And interestingly at this event, it is usually dominated

late geeks. But they invited the world of fashion along as well. With

me is Cosmopolitan's Rosie. What was your impression. Were you impress? I

was actually. I think it is actually a whole new category. It is very

exciting because of that. I think the way it actually looks, and the

usability, makes it just a very exciting products. They seem to have

thought very carefully about how people will use the iWatch, the

Apple Watch. I think the way it will be used day`to`day, it will be quite

popular. I forget will be something that does take off. There are lots

of smart watches out there already. Samsung, Google android watchers

generally, have you taken any interest in them before? Is this a

whole new thing for you? I think it was in is the Apple events, an Apple

product, it does come with that extra bit of hype. It is always good

to see what is new. And I think the care they have taken over the design

of it does make it different to their competitors. I think it is

something that looks very beautiful, and I think it is the first time

that we have seen something so appealing to women. Is the fashion

world getting closer to the technology world, in a way? I think

this could actually mark a step which means that they do become

closer. Because I think the product are so appealing to women, you can

see from the demonstration they had, the designs, the watch straps

that would appeal to men, but they also had the ones that were clearly

specifically meant for women, gold, pink straps, things like that. I

think when you start making technology wearable, it starts to

cross over into fashion, and it becomes a widespread thing if it

really catches on. We could see things like this in the future from

other companies. There is a lot of competition out there. There are

various other watchers. Apple is betting that it can make a

difference as it did with phones as well, but it is going to be an

expensive product, we will have to wait until next year to see whether

it will take off. It is not just consumers, but cheaper rivals that

they have to content with. I asked our correspondent how the tech giant

will compete. The world is changing very rapidly, so far Apple and

Samsung have managed to stay afloat, they are about the only tee

companies in the fast changing mobile world which will continue to

prosper, but they are both coming under pressure, from as you say,

lots of rising Chinese companies. What Apple still has, however, is

extraordinary margins, adaptability so far to protect its brand, to have

a brand that people are willing to pay extraordinary prices for

products that, you know, to some people's eyes, are much the same as

those much cheaper products which come from other companies. Will it

be able to continue to do that? Well, you should not forget that we

have not only seen a watch unveiled today, you have seen two new

versions of the iPhone, bigger iPhones. And that is really the

court to the business. If they managed to keep their margins up on

that iPhone, that iPhone has been the real driver of Robert growth for

Apple. And for more on Apple's latest product launch, and analysis

on what this will mean for the company and the technology sector,

log onto BBC website. In other business is making headlines, Taiwan

and China are scheduled to restart talks today on a free`trade good

agreement, negotiations were delayed due to opposition by concerns in

Taiwan about closer ties with Beijing. The topics include easier

access to the Chinese market would Taiwanese manufacturers of panels,

petrochemicals, machine tools, and automobiles. Japanese eat, as

retailer Rakuten is buying up rival for billions of dollars. It is the

latest of a series of acquisitions including Viber,

business leaders are currently gathering in the Chinese city of

Tianjin for the annual World Economic Forum meeting, known . It

is one of the world's fastest growing. Our correspondent looks at

the challenges the host city is facing. I am in downtown Tianjin, a

thriving, heaving metropolis which is rapidly spreading into the

surrounding landscape. This city has had double`digit growth since 2004,

and all around me there is no shortage of office towers and retail

developments, freeways, and conference centres. But Tianjin is

also a microcosm of all the challenges that face China today.

And it starts right here, in the heart of the city. You've got old

historical buildings from the city's colonial past, hard up

against modern new shopping centres. It is higgledy`piggledy, and

indicative of how the development has been at redneck speed, but not

always at `` breakneck speed. You can almost take the pulse of the

country's economy by what goes on at this port. That is because a lot of

the iron or that shy and brings in its unloaded at this port. The iron

ore goes into steel, to make a lot of things, including apartment

blocks. And right now, the benchmark spot price for Tianjin iron ore is

down to five`year lows, with increasing concerns about the health

of China's poverty. Rows of yet to be finished apartment blocks,

testament to a once confident real estate sector in China. Prices for

new homes are falling across the country. And economists are worried

about the impact of a property downturn on the broader economy. No

one underestimates the challenges facing China, as it tries to turn

its economy away from one fuelled a investment in projects like this

one, to one fuelled by domestic consumption. As the World Economic

Forum gather speakers to Tianjin, the difficulties facing China are

clear for all to see. In the markets, Asia is slipping in

mid`morning Wednesday trade at a US equities fell overnight over

concerns the US central bank could raise interest rates sooner rather

than later. Japan, Hong Kong, and Sydney, all in negative territory.

They give for investing your time with us. Goodbye for now. `` thank

you for investing your time with us. I'm Mike Embley. The top stories

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