:00:00. > :00:08.This is Business Live from BBC News with Ben Thompson and Sally Bundock.
:00:09. > :00:10.The competition takes a bite out of Apple.
:00:11. > :00:14.The tech giant s annual revenue has fallen for the first
:00:15. > :00:33.Live from London, that's our top story on the 26th of October.
:00:34. > :00:38.Bruising results for apple as the darling of Silicon Valley
:00:39. > :00:43.gets squeezed by the competition Posting a 19% fall in profits.
:00:44. > :00:51.Women are on their way to being paid as much as men, in 2186!
:00:52. > :00:55.We'll be telling you why equal pay is thought
:00:56. > :01:04.And China's currency the Yuan has sunk to a six-year low.
:01:05. > :01:07.Will the world s second biggest economy benefit from the drop.
:01:08. > :01:12.Touker Suliman, the multimillionaire entrepreneur and star of Dragons Den
:01:13. > :01:15.will be joining us in the studio to give us the inside track
:01:16. > :01:31.Let us know what you think about Apple. Have they peaked?
:01:32. > :01:43.Could there be a problem with Apple's core?
:01:44. > :01:50.The world's biggest tech company has reported its results for the last
:01:51. > :01:54.year and they don't make for pleasant reading.
:01:55. > :01:58.It's the first time since 2001 that the darling of Wall Street has
:01:59. > :02:01.posted a fall in annual revenues ending one of the hottest
:02:02. > :02:10.Apple's sales in 2016 came in at were over $215 billion it's
:02:11. > :02:14.a huge number but nonetheless a fall of 8% compared to the year before.
:02:15. > :02:18.And the company also reported a fall in iPhone sales for the third
:02:19. > :02:23.quarter in a row for investors it's key as the iPhone is
:02:24. > :02:30.In the last three months Apple sold more than 45 million iPhones,
:02:31. > :02:34.that is better than expected and remember the new iPhone-7
:02:35. > :02:39.was launched after this quarter ended, so doesn't
:02:40. > :02:46.In the last quarter, they made $9 billion that's a fall
:02:47. > :02:49.of 19% compared to the same time last year.
:02:50. > :02:52.Some say it's a sign that the smart-phone market
:02:53. > :02:55.is saturated, that's to say, those who want a smartphone,
:02:56. > :03:01.Revenue from China which is seen as a key growth market
:03:02. > :03:08.So in many ways it's been a difficult year for Apple,
:03:09. > :03:12.all of this on top of the ruling from the EU that it owes
:03:13. > :03:19.the Irish government $14.5 billion in back taxes.
:03:20. > :03:29.Sebastian Anthony, Senior Editor at ArsTechnica, is with me.
:03:30. > :03:35.What is your take on these numbers? In line with expectations, slightly
:03:36. > :03:39.above, if anything just a sign that it's business as usual in the
:03:40. > :03:45.business industry. Shares are still up 20% over the last quarter so
:03:46. > :03:49.analysts are happy. It just looks like business as usual. You say
:03:50. > :03:53.business as usual, but many are looking at Apple and saying has it
:03:54. > :03:58.really peaked, the question we are putting to viewers this morning,
:03:59. > :04:01.have we got to the point where Apple will no longer be coming out with
:04:02. > :04:05.record-breaking numbers quarter on quarter gist because we are not
:04:06. > :04:12.upgrading or changing our iPhones as quickly as they would like? I think
:04:13. > :04:15.that we probably have hit the peak of Apple's current business model
:04:16. > :04:19.which is high-profit devices. I think much of the tech industry is
:04:20. > :04:24.seeing the same pressure so we saw it with Microsoft, we have seen it
:04:25. > :04:28.with probably Google as well and now we are looking at Apple trying to
:04:29. > :04:32.find the next segment to move into which it looks like it will be
:04:33. > :04:37.services, iTunes, Apple music, that kind of stuff but yes, we have
:04:38. > :04:41.probably seen the end of crazy flagship smartphone profits I would
:04:42. > :04:45.say. There was a time when whatever Apple launched, there would be long
:04:46. > :04:49.queues outside stores and we still get that, but it strikes me that
:04:50. > :04:53.people who have the iPhone 59 presidential 6 are hanging on to
:04:54. > :04:57.something radically different and getting to the point where they are
:04:58. > :05:03.not upgrading for the sake of it, only upgrade when the device is
:05:04. > :05:08.broken and you need a fresh one? It's a process, yes, we saw it with
:05:09. > :05:13.PCs, TVs have always been this way, you buy one and there's no reason to
:05:14. > :05:20.replace it until it breaks, you have people that hold on to their 4S, 5S
:05:21. > :05:26.and there's little compelling reason to upgrade. Yet it's a critical time
:05:27. > :05:37.for Apple because its rival Samsung is kind of out of the market at the
:05:38. > :05:40.moment. ? Apple claims it had a supply issue and didn't capitalise
:05:41. > :05:45.on the exploding phones. But also it's just the beginning of that
:05:46. > :05:48.quarter, we'll probably see in December, January, whether they
:05:49. > :05:52.actually manage to capitalise on the exploding phones but you are right,
:05:53. > :05:58.it's a good time for them. It's worth noting that the S7 and the
:05:59. > :06:05.Edge sold very well, as well as the 6S. The watches not though? No, I'm
:06:06. > :06:11.a proud wearer of. They are not selling well. That was a weird
:06:12. > :06:16.segment. Yes, people didn't expect them to do well. It was weird that
:06:17. > :06:20.Apple got into that, they were responding to market pressures but
:06:21. > :06:23.yes, not surprised. Thank you for your time. There is so much more
:06:24. > :06:28.about Apple on the website as well with analysis from the team in
:06:29. > :06:35.technology here at the BBC so dig deep. Capitalising on exploding
:06:36. > :06:39.phones, there's a story! Nintendo has reported a lots in the three
:06:40. > :06:46.months to September after the strengthening Japanese industry
:06:47. > :06:52.impacted its profits overseas. Nintendo slashed its full-year
:06:53. > :06:59.profit forecast by a third. A federal judge has approved a $15
:07:00. > :07:03.billion settlement with VW to settle claims it manipulated diesel
:07:04. > :07:12.emissions tests, the biggest fine in automotive history.
:07:13. > :07:14.General Motors has warned that it may cut car production further
:07:15. > :07:20.in Europe as a result of Britain's vote to leave the European Union,
:07:21. > :07:22.as continued uncertainty hits demand for new vehicles.
:07:23. > :07:25.The Detroit-based carmaker vowed to "take whatever action
:07:26. > :07:28.is necessary" to offset the impact of the Brexit vote, which has
:07:29. > :07:30.already cost it $100 million in the past three
:07:31. > :07:47.And caterpillar cut its targets for the year for the third time saying
:07:48. > :07:53.it's been hit by the downturn in commodity plieses translating to a
:07:54. > :08:01.fall in mining activity. It expects sales to be $39 billion this year
:08:02. > :08:08.Downton year before. -- Downton year before.
:08:09. > :08:16.News from Lloyds. Not a huge change. Profits down about 15% on the same
:08:17. > :08:21.period of 2015 but if you delve down into it, there is not a huge amount.
:08:22. > :08:25.The interesting thing, once again, it's put aside more money to pay for
:08:26. > :08:30.missold payment protection insurance. That was a big scandal
:08:31. > :08:34.here in the UK related to insurance for things like credit cards and
:08:35. > :08:39.mortgages. They have put another billion aside to cover that. That is
:08:40. > :08:48.the latest in a number of banks putting money aside, a saga that
:08:49. > :08:53.goes on and on. More news out of Asia, the Yuan has been trading
:08:54. > :09:02.around near six-year lows, so why is that and what impact does that have
:09:03. > :09:07.in China and further afield? Karishma is in Singapore. What is
:09:08. > :09:10.going on with Yuan? It's been slightly trading up against the
:09:11. > :09:14.dollar, going against the trend that you were talking about. We have been
:09:15. > :09:18.seeing over the last week or so, as you were saying, the Yuan has been
:09:19. > :09:25.hitting fresh six-year lows against the US Dollar and it's very much a
:09:26. > :09:29.US Dollar story, if you will. That's on expectations the US Fed will
:09:30. > :09:34.raise interest rates this year. But that's not the entire story. China's
:09:35. > :09:38.not exactly an entirely free market economy, so its currently is
:09:39. > :09:43.managed. A lot of the analysts have been telling me that China's Central
:09:44. > :09:49.Bank is guiding the currency lower in an orderly and gradual way. Why
:09:50. > :09:54.would they do this? Exports, a weaker currency makes China's goods
:09:55. > :09:58.cheaper overseas but China is in a difficult position, the Yuan can't
:09:59. > :10:02.be too weak because folks at home would get nervous and rush to take
:10:03. > :10:07.their cash out of the country. Thank you very much Karishma. It's
:10:08. > :10:11.tech that's dominating the markets both in aids yes and the US.
:10:12. > :10:19.Nintendo issuing the profit warning for the year downgrading the outlook
:10:20. > :10:25.to 30 billion yen down from the estimate. The Apple earnings came
:10:26. > :10:32.after US markets closed. Shares down 2.5% in after hours trade. A look at
:10:33. > :10:37.what is happening in Europe. Vodafone is going to pay ?4.6
:10:38. > :10:40.million fined by Britain's Telecom watchdog for breaching consumer
:10:41. > :10:45.protection rules. News from the banking giant Lloyds as we touched
:10:46. > :10:50.on setting aside another ?1 billion for PPI. More on that in a moment,
:10:51. > :10:57.but first Samira has the details about what is ahead on Wall Street
:10:58. > :11:03.today. A solid increase of deliveries of the luxury electric
:11:04. > :11:12.cars will be welcome news for investment news when Tesla reports
:11:13. > :11:15.on Wednesday. Consumers want to hear about the acquisition. He also
:11:16. > :11:21.reporting earnings Wednesday, Coca-Cola. They cut their organic
:11:22. > :11:24.revenue growth forecast in July and warned of continuing weakness in
:11:25. > :11:30.markets like China and some parts of Latin America. Following rival
:11:31. > :11:33.Pepsi-Co's announcement to reduce sugar in soft drinks, investors will
:11:34. > :11:47.be looking for similar targets from Coca-Cola.
:11:48. > :11:56.Finally, cable company Comcast. AT could be a big rival.
:11:57. > :12:01.That's Samira in New York for us. So much going on. Jane Foley is with
:12:02. > :12:04.us, senior currency strategist, nice to see you. There are tonnes of
:12:05. > :12:08.earnings stories to Wade through, but what we wanted to talk about as
:12:09. > :12:14.well was this report out from the World Economic Forum, an annual look
:12:15. > :12:18.at the gender pay gap. It's getting wider and wider which I find
:12:19. > :12:22.astounding given the fact that the number of women in prominent
:12:23. > :12:26.positions is going up-and-up and up and it seems to be on the agenda but
:12:27. > :12:29.nothing is improving? This takes into consideration a lot of
:12:30. > :12:33.different factors. One of the factors that went into this report
:12:34. > :12:37.was the amount of hours women work and the amount of hours women work
:12:38. > :12:44.are a month more than men. One of the reasons for that is caring. A
:12:45. > :12:49.lot of women do unpaid work. The amount of opportunities it seems has
:12:50. > :12:53.also reached a plateau, more women reaching senior positions but there
:12:54. > :12:55.hasn't been that much new progress and there's pressure on the
:12:56. > :13:00.Governments to do something about it. No-one likes quotas, the women
:13:01. > :13:04.that get promoted through quotas don't them quotas, but it seems when
:13:05. > :13:09.things aren't happening on their own, these things need to be pushed.
:13:10. > :13:13.But 170 years to close the gap is mind-boggling? It is. It's
:13:14. > :13:19.depressing for women who're working hard. Women now are at least as well
:13:20. > :13:21.educated if not better in many universities there are more women et
:13:22. > :13:26.cetera and there's a short fall there. We talked about this before
:13:27. > :13:30.on this programme because both Jane and I have experienced this problem
:13:31. > :13:40.and corrected it actually, a former employer for you and for me, we
:13:41. > :13:45.found male counterparts doing the same job and being paid more. In
:13:46. > :13:49.fact I had a tap on the shoulder from HR saying, we need to pay you
:13:50. > :13:53.more. But women do that and maybe not realise that they are getting
:13:54. > :13:59.paid less. Thank you, Jane. That was a result! Lots of stories to cover
:14:00. > :14:05.in terms of business news. Including my favourite story, why a chicken
:14:06. > :14:16.shop is being sued for $20 million by a grandmother. The dragon is out
:14:17. > :14:23.of the den! Toukeris here. You are with business live from BBC news.
:14:24. > :14:30.Vodafone's been hit with a huge fine from Ofcom over the way it treats
:14:31. > :14:33.its customers. The Telecoms regulator's fined Vodafone ?4.6
:14:34. > :14:43.million for mishandling complaints and a fail your in IT systems that
:14:44. > :14:52.cost ?10,452 customers to be precise they paid extra money. Lynsey is the
:14:53. > :14:55.consumer group director for Ofcom. She spoke to us earlier discussing
:14:56. > :15:00.why this was a problem on what's happening in the industry.
:15:01. > :15:05.This is a significant fine, the largest we have levied. As well as
:15:06. > :15:09.the fine, vote fiend's had to recompense all the customers and pay
:15:10. > :15:12.a further contribution of ?100,000 to charity in lieu of the small
:15:13. > :15:16.number of customers they weren't able to trace.
:15:17. > :15:22.To be clear, we want the fine today to send a clear message across the
:15:23. > :15:25.industry, not just to Vodafone, that every consumer expects and demands
:15:26. > :15:34.high quality customer service and that's what they need to deliver.
:15:35. > :15:39.Andrew Walker is in our business newsroom. Talk us through this, it
:15:40. > :15:43.is easy to say they had errors with how they handled complaints and
:15:44. > :15:47.things like that but it's a bit more complicated. At base, this is about
:15:48. > :15:50.a group of customers who had pay-as-you-go phones who paid money
:15:51. > :15:55.to top them up and they simply were not credited with the additional
:15:56. > :15:58.money. Now these were phones that had been dormant for at least nine
:15:59. > :16:01.months, and when they reactivated them they were given messages saying
:16:02. > :16:05.they would be able to make calls but in fact they couldn't. Vodafone
:16:06. > :16:09.accepts it should have done more to do with the problem, taken action
:16:10. > :16:12.more quickly, but it has now managed to track down nearly all the
:16:13. > :16:18.customers concerned and reimburse them to the children of an average
:16:19. > :16:22.of ?14 plus a few pence. There were 30 they were unable to track down
:16:23. > :16:25.and cover that, they say they have no intention of making a profit from
:16:26. > :16:30.what has happened, so they have made a donation to charity to the June of
:16:31. > :16:34.?100,000, which I think it would be fair to say more than covers the
:16:35. > :16:39.money involved. Ultimately though it was a result of a problem with the
:16:40. > :16:44.migration of very complex information technology willing
:16:45. > :16:53.system and some customers suffered as a result. Thank you for
:16:54. > :16:54.clarifying that. Heineken are stating a rise of beer sales of the
:16:55. > :17:01.third quarter by 2%. You're watching Business Live -
:17:02. > :17:03.our top story Apple has reported its first drop in annual
:17:04. > :17:05.revenue since 2001 - with the third successive quarter
:17:06. > :17:07.of declining iPhone sales. But the company is predicting
:17:08. > :17:10.that it will return to growth over A quick look at how
:17:11. > :17:23.markets are faring.... A quick look for you at Europe.
:17:24. > :17:26.Trading down so far on the day. The Dax coming off those record highs
:17:27. > :17:31.that we saw midweek. Now, as promised -
:17:32. > :17:33.we've persuaded our next guest He's the serial entreprenuer
:17:34. > :17:39.and investor... And best known to many
:17:40. > :17:51.as one of the Dragons If you are watching around the world
:17:52. > :17:54.may be known as Shark Tank elsewhere.
:17:55. > :17:57.It allows entrepreneurs to pitch business ideas to a panel of experts
:17:58. > :17:58.in the hope of securing an investment.
:17:59. > :18:01.Touker Suleyman started his career at the age of 18,
:18:02. > :18:02.when he established his own clothing manufacturer.
:18:03. > :18:05.He has since go on to turn around fashion businesses including Ghost
:18:06. > :18:13.After joining Dragons' Den last year, Suleyman has so far invested
:18:14. > :18:16.700 thousand dollars on the show - in businesses ranging from a gourmet
:18:17. > :18:20.brownie company to a musical flushing toilet!
:18:21. > :18:23.His latest investment off the screen is a baby teething toy company
:18:24. > :18:25.called MatchStick Monkey - which he hopes to expand
:18:26. > :18:34.into a whole range of branded baby products.
:18:35. > :18:36.We'll be speaking to Touker in a moment, but first
:18:37. > :18:45.here he is in action on the British version of Dragons Den.
:18:46. > :18:51.You are stretching ourselves very wide. You're better off focusing on
:18:52. > :18:54.one brown. At Edna how it can stop something that is doing so well.
:18:55. > :19:02.That is why we want both and they are both succeeding so well. OK,
:19:03. > :19:06.I've seen it before, Anthony, two brands, two websites, you're in for
:19:07. > :19:11.a disaster. In for a disaster! Reassuring words. He does not mince
:19:12. > :19:17.his words. Now, I don't. It is called seconds then for a reason. We
:19:18. > :19:23.get straight to the point. Let's do that right now, it is quite small, I
:19:24. > :19:27.am wiggling it around, matchstick monkey, it will set me back ?9 99 in
:19:28. > :19:37.the UK and it is the little children. Three months to two years.
:19:38. > :19:41.Who are teething and they chew on this. It had me 15 minutes to make
:19:42. > :19:48.the investment. You were convinced from the outset? Husband-and-wife
:19:49. > :19:52.came to see me, the husband wanted to invest in a bad business and the
:19:53. > :20:00.wife said, I've got this monkey. I said what is that, as said he now
:20:01. > :20:06.know what to do with it. That was it. We talk about investment and new
:20:07. > :20:12.business ideas, this is to be frank a really simple concept. What is it
:20:13. > :20:15.you can spot in that because it is nothing particularly radical or new
:20:16. > :20:19.but it is something you think is worth the investment. Matchstick
:20:20. > :20:27.Monkey, what I saw in that initially was a brand that I could take into
:20:28. > :20:31.lots of products, in the books, cartoons, animation. I've even got
:20:32. > :20:39.Mike Chapman, the famous Mike Chapman, simply the best, writing
:20:40. > :20:44.the jingle. So in my view, if this isn't doing within three years a 200
:20:45. > :20:48.million turnover, I would be very surprised. My first thought was
:20:49. > :20:51.nearly ?10, I would not spend it on that because of the get thrown out
:20:52. > :20:55.of the picture in the park and I will never see it again. All I can
:20:56. > :20:59.tell you is the first delivery of the goods is next week you will see
:21:00. > :21:03.it in lots of high streets, Mothercare, M, other stores, they
:21:04. > :21:09.are going crazy for it. We have got 20 countries who want to buy it,
:21:10. > :21:13.they can't all be wrong. Let's move on from the monkeys, as mad to talk
:21:14. > :21:18.about them. Monkey business. And talk about your day job, clearly the
:21:19. > :21:22.Dragons Den is fun, a lot of money involved, spending so much of your
:21:23. > :21:25.own money doing that, but it is the day job that got you there. How did
:21:26. > :21:29.you begin, because like many of the people who come into the den you
:21:30. > :21:36.have suffered your first there are success and failure. I started very
:21:37. > :21:39.young. That the age of 208I was very successful, chairman of two public
:21:40. > :21:44.companies and I bought one is this that was wrong. Pack of cards, had
:21:45. > :21:50.to start all over again. But you know failure is only a result of
:21:51. > :21:57.your journey. It is not the end. Since then, I have just focused on
:21:58. > :22:00.my businesses, which was clothing manufacturers to start, and then
:22:01. > :22:08.commercial property, which in this area has done me very well, and then
:22:09. > :22:12.taking brands which were in trouble and restoring them back to its
:22:13. > :22:15.former glory. Many watching the show and the Dragons Den will want to
:22:16. > :22:20.know what it is that makes you a winner when it comes to being an
:22:21. > :22:26.entrepreneur. Anyone can be a winner, not just me. As far as I'm
:22:27. > :22:32.concerned, I spot good entrepreneurs, good ideas, and very
:22:33. > :22:37.quickly I work out in my head and say what value can I add to that
:22:38. > :22:42.business? Where could it be in 12 to 18 months, three years' time? If the
:22:43. > :22:46.full coming to pitch not just in the Denver anywhere, so you are going to
:22:47. > :22:51.look for an investment, be it on a crowdfunding sort of platform or in
:22:52. > :22:56.a traditional investment method, what are the top tips? What do they
:22:57. > :23:00.need to prove? When you come to the den, you have got to get your
:23:01. > :23:04.numbers right, we all know. Make it very simple for the investor to
:23:05. > :23:19.understand what you've got and what you are pitching for. What the
:23:20. > :23:23.planners. I have seen new mauling entrepreneurs and the den usually
:23:24. > :23:28.because their figures don't pick up. I think in some ways they are very
:23:29. > :23:32.nervous. They come to the den, there are five Dragons sitting there, but
:23:33. > :23:34.in a lot of cases the border do their homework properly. They don't
:23:35. > :23:44.look at their competition. You have got to know your margins, your
:23:45. > :23:49.turnover, your profit. And say to yourself, have I got everything that
:23:50. > :23:54.an investor would want to know? All right, Touker, I wish we had more
:23:55. > :23:57.time, but I will keep an eye on the monkey business for sure. Let's see
:23:58. > :24:00.if you are right this time. I think I'm right on this one.
:24:01. > :24:07.In a moment we will look to the business pages, but a reminder of
:24:08. > :24:11.how to get in touch. The Business Live pages where you can stay ahead
:24:12. > :24:15.of the braking business news. We will keep you up-to-date with all
:24:16. > :24:19.the latest details, insight and analysis from the BBC's team of
:24:20. > :24:23.editors right around the world and want to hear from you too. Get
:24:24. > :24:35.involved in the BBC Business Live web page, and we are on Twitter.
:24:36. > :24:41.Business Live on TV and online, whenever you need to know. Jane is
:24:42. > :24:44.back and Ben did say one of the most intriguing stories that caught his
:24:45. > :24:47.attention was this one in the Washington Post, a grandmother suing
:24:48. > :24:55.KFC for $20 million because she didn't get enough checking. She was
:24:56. > :24:59.thinking it is foul play! Basically she saw the adverts on the TV, we
:25:00. > :25:03.have all seen the adverts on KFC, lots KFC, lots and lots of chicken,
:25:04. > :25:07.overflowing the basket, and she went home and there was not worked at
:25:08. > :25:13.all. She complained, they offered her a free gift, she turned back and
:25:14. > :25:21.said no. So is KFC staff now always 20 billion a small out of money? She
:25:22. > :25:26.says it is the principle of the matter. Sometimes you have to hit
:25:27. > :25:32.people where they fill it. KFC will field $20 million. We will have to
:25:33. > :25:41.watch that space. She will get of money I would imagine! That is
:25:42. > :25:45.mentioned some of your treats. Andrew says Apple will never be as
:25:46. > :25:52.good as it was when Steve jobs was alive. Keep your comments coming in.
:25:53. > :26:08.Thank you to Jane and thank you for watching. Goodbye.
:26:09. > :26:17.Hello. The weather has done something of a U-turn. We have lost
:26:18. > :26:18.the chilly easterly winds, the now coming in from the West,