24/01/2014 Asia Business Report


24/01/2014

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decades, according to an annual crime survey. Shoplifting and street

:00:00.:00:00.

theft are up. Time for the latest business news from Singapore.

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Changing fortunes - Samsung's mobile division posts a drop in quarterly

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earnings. Can Chinese PC maker expand its

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product line-up? Standing of IBM's server business.

:00:33.:00:38.

Welcome to Asia Business Report. We start with Samsung, which has

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reported a mixed bag of earnings. The company posted a 30% jump in its

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full-year profit, but the final quarter of last year, its operating

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profit in its mobile division, its main revenue generator, fell by 18%.

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That is because new mobiles from Apple drove away profit. This year,

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it will diversify its products. That could be a tough challenge. Our

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correspondent has more. Samsung became the world 's biggest maker of

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mobile phones in 2012 when it overtook Nokia. Sales of smartphones

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make up 60% of its operating profit. Sales started to slow when Apple

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release its latest iPhone in September. Samsung is now banking on

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its new phone, with a larger screen. Even will this come under

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competition. Apple are expected to release a similar sized phones this

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year. We will see what consumers think. I have been using Apple since

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2010. It is user-friendly for me and my children. I do not like Apple

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products. Samsung is customisable. Samsung has more functions. You are

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able to customise more things. Apple is quite restricting. Samsung has

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done well in emerging markets, especially with strategy of

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developing different models at different prices. It faces new

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challenges in China, where it has been the dominant player. Apple has

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started selling its iPhones with China Mobile. With the smartphone

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market mature red, it is putting pressure on all makers. Analysts say

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Samsung will have to innovate and come up with something unique if it

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is going to create new growth. Continuing with Samsung, its brand

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may be under threat. That is according to one of the founders of

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an advertising agency which was recently bought out by a French

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publicist, which in turn is in the midst of a merger, creating the

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largest advertising firm in the world. I caught up to find out the

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outlook for the industry, I started by asking about his views on

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Samsung. Looking at Samsung as a brand that has been particular the

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successful, I will be very critical here. It tends to be a copier. Where

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risk originality that? Originality has always been a dangerous word.

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Where risky fresh perspective? I look at what they have done it is

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like a copy of apple product. There is a place without, but the future

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for has got to be being more innovative and leading, not

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following. The past five years has been hard or industry. The slowdown

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in the global economy has not that many companies are not spending big

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money on advertising. How has that hit your company can make bizarrely,

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our industry always suffers when a recession comes along. Everybody

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suffers. In a peculiar way, when sales are slowing down, I was

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imagined... The right kind of advertising stimulative economy.

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Stimulator and investigation into products and services. It encourages

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productivity. If economics is a state of mind, than the more

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positive people are, the better the economy will be. There was a great

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deal of consolidation going on in your industry. Is it killing of

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competition as well as creativity? There is always a danger when you

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get consolidation, you get a reduction in competitiveness. That

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is a concern. The counter argument is that by consolidating we can get

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more information, we can aid and assistant make our product better.

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What are the cultural impediments to creativity in Asia? Creativity is

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not an occupation, it is a preoccupation. It requires eager. An

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overuse of respect will deaden creativity. Thank you.

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From March this year, India's central bank will withdraw all

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currency notes printed before 2005. Our correspondent has more.

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Plan to check my bank notes. A new water by the Indian central bank is

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to withdraw all currency notes issue before 2005. It is an attempt to

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curb the amount of black money in circulation. Cash that has not been

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declared, and not been taxed. By some estimates, India's underground

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economy accounts for nearly 50% of the national output. This new order

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will have people worried. Anybody holding a lot of cash will have to

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go to retail banks to exchange them. Anybody who it is not an existing

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customer of the bank has to show some kind of ID proof if they want

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to exchange more than ten of these 500 rupee or 1000 rupee notes.

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People on the streets are not panicking, because most to know

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about the order. I will check my wallet, the notes are fine. We

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withdraw money in squalid nominations -- smaller to

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nominations. There is no way that you could generate that kind of

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money. It is not bother me at all. The old notes will continue to be

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valid legal tender. Retailers. Stop accepting the money as payment. So

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how the notional currency that is old or new? The central bank has

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issued an advisory. If you look at the currency notes and see the

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middle of the nose, they should be a year. If the spaces bank -- the

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space is blank, then it is not valid. Retail banks have been

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advised to shore up their currency operations, expecting long queues of

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people. Shares of China's Lenovo are higher

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by as much as 8% today, that is after the company agreed to buy

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IBM's low-end server business. The deal had been widely anticipated as

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both sides were in talks. They could not agree on pricing. Lenovo bought

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IBM's business back into that in five -- in 2005. Lenovo overtook

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Hewlett-Packard as the number one PC make it into as it well. -- in

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2012. We saw a 10% decline in shipments. They are looking at new

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avenues for growth. This fits nicely with our strategic direction to

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become one of the largest technology companies. It gives them a new

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revenue Paul Butler so helps their bottom line. This is a business IBM

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does not want. IBM has done well with -- Lenovo has done well with

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that is as IBM has not wanted in the past. Can it do the same? I am sure

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they can do a good job. Once the deal goes through an integrated

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business into their organisation, I think the key will be understanding

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that this business is different from the PC business. There are elements

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of corporation or excellent -- it also requires partnerships with

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software vendor is to deliver a complete suite. It will have to

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compete with others who would do it well. The cloud is another issue.

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People moving away from traditional infrastructures. Lenders like HP,

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Dell and Cisco, who are the incumbents, fierce competitors, they

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will go aggressively after IBM's customer base and partners once the

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deal is close. That will be a huge challenge for women over. -- for

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Lenovo. A quick look at the market. They are all alive. We have seen the

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Nick Cave losing 300 points. The yen is strengthening. That will make an

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impact on exporters. Headlines: after a day of talks with

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the government, Ukraine's opposition

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