26/10/2016 Asia Business Report


26/10/2016

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Apple reveals the first fall in annual revenues since 2001 as iPhone

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sales slow. And traditional art with a modern twist. We take a look at

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how this Indian start-up took on a risky venture. Good morning, Asia.

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Hello, world. It's Wednesday and I'm glad you could join us for this

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edition of Asia Business Report. We start with Apple and the technology

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giant's earnings have left investors with a slightly bitter taste. It

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sold more iPhones than expected that they were still down for the third

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quarter in a row. Shares falling in trading in New York.

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It is indeed a difficult environment for anyone really selling iPhones

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or, rather, any sort of smart phone. The two headlines he really are that

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we are seeing there is a slowdown happening in both China and the US

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in terms of sales for Apple. Those are really to make big markets for

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them. Concern a slowdown in sales there is not good. Also the iPhone

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is the East and the fact we are seeing declining sales for the

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iPhone that is somewhat worrying for investors. Indeed, revenue from

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greater China which is supposedly apple's next growth engine fell by

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around 30%. But a lot of analysts are saying that Apple's iPhone could

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gain some traction with the problems of Samsung this quarter. That is

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right and that is what some people are expecting. These results don't

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include the new iPhone 7 so the upgraded version that was released

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in September. In the next three months we will see those sales

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really reflected in the next earnings. And also, remember, the

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next three months will include two really big shopping season is here

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in the US, you have Christmas and you have Thanksgiving. And if you

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look at the forecast for Apple, they are predicting that winter will be

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really profitable for the company. Chinese smartphone Manufacturer 's

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have emerged as a major competitor to Apple in recent years and one of

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them is Shao Ming. Are they hoping to continue to take market share

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from Apple and Samsung following the exploding battery scandal? We have

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been a very innovative company for the last 6.5 years since our

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inception here in Asia. Our mantra is innovation for everyone so of

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course we are charging ahead full speed with the most innovative

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technology we can come up with. We just announced yesterday a product

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which seems to have caught the world by surprise. It is an ageless design

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phone which I think speaks the language we want the everyone to

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hear. We are doing amazing musings from over here. You mentioned

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earlier that it was the amino to two and you say that it is taking the

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world by surprise and also taking a lot of smart phone watches by

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surprise because they say there is a striking similarity to the Galaxy

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notes seven. To think that I would say. First of all the designer we

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have introduced with our Mi note series proceeds of the curve design

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features of the product you are talking about. We were the first

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ones to do it. We were the first ones to have curbed glass design in

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our phone. This was well before any other player tried the same design.

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What we are doing now is we introducing a curved display on the

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front which is based on flexible OLED. There is really only way you

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can ever curved display and we are the second major player to

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incorporate that design. You will likely see other device makers as

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well as they advance their designs. I am sure that Samsung would

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disagree because they came up with their own curved design before the

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Mi note series. And a lot of critics are saying that there is not enough

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innovation and there is a lot of design duplication among the Chinese

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smartphone makers. I would say, I will bring a device into the camera

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frame here. This is MiMix. The world's first phone with an ageless

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design. There is nothing on the top of the fire screen. This is what

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caught the world by surprise yesterday. This sort of design is

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what people were put into a deed dream territory and we announced

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yesterday as a concept phone but one we are actually selling as well.

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A decision has landed at last. The British government has announced

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that it will be building a third runway at Heathrow to expand the

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country's airport capacity. So what are the implications for Asian

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travellers especially with the fall in the pound making the UK and

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attractive travel destination. I put the question to Russell Young. It is

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one of the ironies I guess of the initial fallout of the Brexit

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announcement, looking at China, for example, in the months that followed

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in July we saw an immediate 13% increase in inbound tourism into

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London and that has been replicated across many of the major countries

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across the Asia-Pacific region. Can this be sustained using going

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forward? Is London really viewed as a hub for Asian travellers because

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we are now seeing the alternate destinations, particularly in the

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Middle East. I think that is a great point. The Middle East has emerged

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as a major connection point in the last few years. It has seen rapid

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expansion itself and has overtaken London in terms of overall visitor

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numbers going from 78 million two 74 million going through London.

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However, the expansion of London will take them into excess of 100

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million visitors per month and it still remains a major connection

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point with Europe and North America. But for travellers overall it is

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about accessibility and affordability and with the cheaper

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British pound this is an advantage for them. Absolutely. In the current

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climate there is a huge incentive to head to London, Heathrow will play a

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key point in that. And also the accessibility to the rest of Europe.

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That was Russell Young. India is full of colourful symbols and

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distinctive icons but artists who want to give those images a modern

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twist have very few places to display their right. One start-up is

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bringing together urban artists and turning their designs into home and

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lifestyle products. But changing the culture among its customers have not

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been easy. They tell us more about start-up success.

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It was inspired by the struggles of my wife who was creating art and

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trying to sell the product. And I noticed that she had a lot of talent

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but not a lot of business savvy. We are pleased where we can bring

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artists together, take care of all the difficult stuff and financing,

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building brands, production, printing, marketing and selling and

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let graphic designers and artists focus on what they do well. When we

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first started there was very little work out there. It was either

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commercial work or you were sitting on your laptop or sketchbooks of

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talented graphic artists and designers and sometimes you were

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just find a that someone had done and you would be able to say hey,

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that is somebody who we think should come onto the platform. We did a

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survey of retail across the country and we found pretty much where we

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would like to be. This means to be in front of people so we want to do

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this on our own and our destination shop and destination kiosks in

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addition to having a destination site online. Competing online in

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India has been very difficult for the last couple of years and a lot

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of that has to do with the heavy discounting. What happened as a

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result is consumers a sort of looking at the Internet at a

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discount channel. That's the sort of expectation that Indian is for me.

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Now that it has been deemed to be tenable from an investment and

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profitability standpoint for the top companies we are seeing discounts

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reduced to some degree. This kind of art and design, there is no doubt

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that the market is far more of old and ready to accept these. However

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what really trying to create here is an entirely fresh visual identity of

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India. Very interesting designs they are from Kulture Shop. Let's have a

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quick look now at what is happening in the markets. They'll all trending

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into negative territory. That is after the US retreated overnight.

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Japan and Australia in the red. Thank you so much for investing your

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time with us. Sport Today is coming up next.

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Is bring you up-to-date with our main stories on BBC News. The UK

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government has given the go-ahead for a third runway at Heathrow

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