:00:15. > :00:24.Apple reveals the first fall in annual revenues since 2001 as iPhone
:00:25. > :00:30.sales slow. And traditional art with a modern twist. We take a look at
:00:31. > :00:40.how this Indian start-up took on a risky venture. Good morning, Asia.
:00:41. > :00:46.Hello, world. It's Wednesday and I'm glad you could join us for this
:00:47. > :00:51.edition of Asia Business Report. We start with Apple and the technology
:00:52. > :00:55.giant's earnings have left investors with a slightly bitter taste. It
:00:56. > :01:00.sold more iPhones than expected that they were still down for the third
:01:01. > :01:06.quarter in a row. Shares falling in trading in New York.
:01:07. > :01:14.It is indeed a difficult environment for anyone really selling iPhones
:01:15. > :01:18.or, rather, any sort of smart phone. The two headlines he really are that
:01:19. > :01:24.we are seeing there is a slowdown happening in both China and the US
:01:25. > :01:30.in terms of sales for Apple. Those are really to make big markets for
:01:31. > :01:36.them. Concern a slowdown in sales there is not good. Also the iPhone
:01:37. > :01:39.is the East and the fact we are seeing declining sales for the
:01:40. > :01:47.iPhone that is somewhat worrying for investors. Indeed, revenue from
:01:48. > :01:51.greater China which is supposedly apple's next growth engine fell by
:01:52. > :01:59.around 30%. But a lot of analysts are saying that Apple's iPhone could
:02:00. > :02:04.gain some traction with the problems of Samsung this quarter. That is
:02:05. > :02:09.right and that is what some people are expecting. These results don't
:02:10. > :02:14.include the new iPhone 7 so the upgraded version that was released
:02:15. > :02:18.in September. In the next three months we will see those sales
:02:19. > :02:22.really reflected in the next earnings. And also, remember, the
:02:23. > :02:26.next three months will include two really big shopping season is here
:02:27. > :02:30.in the US, you have Christmas and you have Thanksgiving. And if you
:02:31. > :02:37.look at the forecast for Apple, they are predicting that winter will be
:02:38. > :02:40.really profitable for the company. Chinese smartphone Manufacturer 's
:02:41. > :02:50.have emerged as a major competitor to Apple in recent years and one of
:02:51. > :02:58.them is Shao Ming. Are they hoping to continue to take market share
:02:59. > :03:04.from Apple and Samsung following the exploding battery scandal? We have
:03:05. > :03:09.been a very innovative company for the last 6.5 years since our
:03:10. > :03:12.inception here in Asia. Our mantra is innovation for everyone so of
:03:13. > :03:17.course we are charging ahead full speed with the most innovative
:03:18. > :03:20.technology we can come up with. We just announced yesterday a product
:03:21. > :03:25.which seems to have caught the world by surprise. It is an ageless design
:03:26. > :03:28.phone which I think speaks the language we want the everyone to
:03:29. > :03:35.hear. We are doing amazing musings from over here. You mentioned
:03:36. > :03:39.earlier that it was the amino to two and you say that it is taking the
:03:40. > :03:44.world by surprise and also taking a lot of smart phone watches by
:03:45. > :03:48.surprise because they say there is a striking similarity to the Galaxy
:03:49. > :03:59.notes seven. To think that I would say. First of all the designer we
:04:00. > :04:05.have introduced with our Mi note series proceeds of the curve design
:04:06. > :04:09.features of the product you are talking about. We were the first
:04:10. > :04:13.ones to do it. We were the first ones to have curbed glass design in
:04:14. > :04:17.our phone. This was well before any other player tried the same design.
:04:18. > :04:23.What we are doing now is we introducing a curved display on the
:04:24. > :04:27.front which is based on flexible OLED. There is really only way you
:04:28. > :04:30.can ever curved display and we are the second major player to
:04:31. > :04:35.incorporate that design. You will likely see other device makers as
:04:36. > :04:38.well as they advance their designs. I am sure that Samsung would
:04:39. > :04:44.disagree because they came up with their own curved design before the
:04:45. > :04:48.Mi note series. And a lot of critics are saying that there is not enough
:04:49. > :04:53.innovation and there is a lot of design duplication among the Chinese
:04:54. > :05:03.smartphone makers. I would say, I will bring a device into the camera
:05:04. > :05:07.frame here. This is MiMix. The world's first phone with an ageless
:05:08. > :05:13.design. There is nothing on the top of the fire screen. This is what
:05:14. > :05:18.caught the world by surprise yesterday. This sort of design is
:05:19. > :05:22.what people were put into a deed dream territory and we announced
:05:23. > :05:25.yesterday as a concept phone but one we are actually selling as well.
:05:26. > :05:33.A decision has landed at last. The British government has announced
:05:34. > :05:38.that it will be building a third runway at Heathrow to expand the
:05:39. > :05:41.country's airport capacity. So what are the implications for Asian
:05:42. > :05:45.travellers especially with the fall in the pound making the UK and
:05:46. > :05:52.attractive travel destination. I put the question to Russell Young. It is
:05:53. > :05:57.one of the ironies I guess of the initial fallout of the Brexit
:05:58. > :06:01.announcement, looking at China, for example, in the months that followed
:06:02. > :06:06.in July we saw an immediate 13% increase in inbound tourism into
:06:07. > :06:11.London and that has been replicated across many of the major countries
:06:12. > :06:15.across the Asia-Pacific region. Can this be sustained using going
:06:16. > :06:20.forward? Is London really viewed as a hub for Asian travellers because
:06:21. > :06:25.we are now seeing the alternate destinations, particularly in the
:06:26. > :06:29.Middle East. I think that is a great point. The Middle East has emerged
:06:30. > :06:32.as a major connection point in the last few years. It has seen rapid
:06:33. > :06:40.expansion itself and has overtaken London in terms of overall visitor
:06:41. > :06:43.numbers going from 78 million two 74 million going through London.
:06:44. > :06:47.However, the expansion of London will take them into excess of 100
:06:48. > :06:53.million visitors per month and it still remains a major connection
:06:54. > :06:56.point with Europe and North America. But for travellers overall it is
:06:57. > :06:59.about accessibility and affordability and with the cheaper
:07:00. > :07:03.British pound this is an advantage for them. Absolutely. In the current
:07:04. > :07:10.climate there is a huge incentive to head to London, Heathrow will play a
:07:11. > :07:15.key point in that. And also the accessibility to the rest of Europe.
:07:16. > :07:18.That was Russell Young. India is full of colourful symbols and
:07:19. > :07:23.distinctive icons but artists who want to give those images a modern
:07:24. > :07:29.twist have very few places to display their right. One start-up is
:07:30. > :07:32.bringing together urban artists and turning their designs into home and
:07:33. > :07:38.lifestyle products. But changing the culture among its customers have not
:07:39. > :07:49.been easy. They tell us more about start-up success.
:07:50. > :07:57.It was inspired by the struggles of my wife who was creating art and
:07:58. > :08:03.trying to sell the product. And I noticed that she had a lot of talent
:08:04. > :08:08.but not a lot of business savvy. We are pleased where we can bring
:08:09. > :08:13.artists together, take care of all the difficult stuff and financing,
:08:14. > :08:17.building brands, production, printing, marketing and selling and
:08:18. > :08:23.let graphic designers and artists focus on what they do well. When we
:08:24. > :08:27.first started there was very little work out there. It was either
:08:28. > :08:33.commercial work or you were sitting on your laptop or sketchbooks of
:08:34. > :08:38.talented graphic artists and designers and sometimes you were
:08:39. > :08:43.just find a that someone had done and you would be able to say hey,
:08:44. > :08:46.that is somebody who we think should come onto the platform. We did a
:08:47. > :08:53.survey of retail across the country and we found pretty much where we
:08:54. > :09:00.would like to be. This means to be in front of people so we want to do
:09:01. > :09:06.this on our own and our destination shop and destination kiosks in
:09:07. > :09:13.addition to having a destination site online. Competing online in
:09:14. > :09:18.India has been very difficult for the last couple of years and a lot
:09:19. > :09:25.of that has to do with the heavy discounting. What happened as a
:09:26. > :09:31.result is consumers a sort of looking at the Internet at a
:09:32. > :09:39.discount channel. That's the sort of expectation that Indian is for me.
:09:40. > :09:42.Now that it has been deemed to be tenable from an investment and
:09:43. > :09:47.profitability standpoint for the top companies we are seeing discounts
:09:48. > :09:56.reduced to some degree. This kind of art and design, there is no doubt
:09:57. > :10:00.that the market is far more of old and ready to accept these. However
:10:01. > :10:09.what really trying to create here is an entirely fresh visual identity of
:10:10. > :10:15.India. Very interesting designs they are from Kulture Shop. Let's have a
:10:16. > :10:20.quick look now at what is happening in the markets. They'll all trending
:10:21. > :10:27.into negative territory. That is after the US retreated overnight.
:10:28. > :10:30.Japan and Australia in the red. Thank you so much for investing your
:10:31. > :10:37.time with us. Sport Today is coming up next.
:10:38. > :10:45.Is bring you up-to-date with our main stories on BBC News. The UK
:10:46. > :10:46.government has given the go-ahead for a third runway at Heathrow