:00:00. > :00:00.Those are the latest headlines from BBC News.
:00:00. > :00:00.Now for the latest financial news with Sally
:00:00. > :00:16.Sweet and sour, it's another record breaking quarter for Apple,
:00:17. > :00:23.but sales growth of the iPhone slows for the very first time.
:00:24. > :00:43.I'm Sally Bundock. India over its proposals to offer
:00:44. > :00:45.Also in the programme shares in Shanghai continue to sink
:00:46. > :00:49.Rico will tell you all you need to know.
:00:50. > :00:57.The US technology giant Apple has reported the biggest ever quarterly
:00:58. > :00:59.profit for a public company at $18.4 billion.
:01:00. > :01:02.But while it exceeded expectations both for revenue and profit, the
:01:03. > :01:05.number that everyone was looking for, sales of iPhones, disappointed.
:01:06. > :01:08.For the first time growth in iPhone sales is slowing,
:01:09. > :01:11.The company's reported sales of 74.8 million iPhones for the quarter,
:01:12. > :01:15.That's a big slowdown, compared to Q1 last year where sales
:01:16. > :01:18.And investor anxiety over a slowdown in sales is echoed here
:01:19. > :01:21.in the company's share price, you can see six months ago it hit
:01:22. > :01:24.a high, just above $132, now it's below the $100 mark.
:01:25. > :01:27.Apple's sales in Greater China, defined by the company as China,
:01:28. > :01:30.Hong Kong and Taiwan, rose 14%, but that was much slower than
:01:31. > :02:05.With me is Tim Coulling, Technology analyst at Canalys.
:02:06. > :02:12.We have sort of talked about the bare bones of the news but also
:02:13. > :02:19.interestingly, Tim Cook, the boss of Apple, he sounded quite pessimistic
:02:20. > :02:24.on the conference call? He said the next quarter would be even worse.
:02:25. > :02:29.Certainly. Apple does face significant headwinds in terms of
:02:30. > :02:34.global currency. As you are well aware, the dollar is trading very
:02:35. > :02:38.high at the moment against other currencies, making Apple products
:02:39. > :02:44.expensive in other countries. And also making it difficult when
:02:45. > :02:51.reporting financial performance. Tim Cook spent a lot of time yesterday
:02:52. > :02:55.talking about constant currency, and said revenues would be a lot better
:02:56. > :03:01.had the dollar not had such a strong performance. How concerning are the
:03:02. > :03:06.figures coming out of China? Because I must admit, when I heard the
:03:07. > :03:09.numbers, I did instantly think, well, the previous numbers were
:03:10. > :03:13.owing to be extremely high because they had just done a deal with China
:03:14. > :03:19.mobile and it was bound to drop off quite a bit. Is that not the case?
:03:20. > :03:24.If you look at Apple's iPhone shipments globally, we have around
:03:25. > :03:30.50% of shipments going into the US and China combined. IPhone
:03:31. > :03:36.performance is very heavily reliant on the performance of those two
:03:37. > :03:41.countries. Certainly we have seen some worrying signs for the Chinese
:03:42. > :03:48.economy in recent weeks and months. There is certainly a bit of a
:03:49. > :03:53.downturn in consumer confidence, one might say. People are not looking to
:03:54. > :03:57.spend money is readily. With that in mind, any slowdown in the Chinese
:03:58. > :04:05.economy, any confidence in the Chinese consumers does affect iPhone
:04:06. > :04:09.shipments pretty heavily. IPhone sales grew 76% in India at the same
:04:10. > :04:13.time which sounds pretty impressive. Tim Cook says they will continue to
:04:14. > :04:21.invest in India. Is that not a bright spot for the company? 76%
:04:22. > :04:27.does sound impressive, however Apple's shipments to the country are
:04:28. > :04:32.fairly low. It accounts for about 8% of global smartphone shares, it is
:04:33. > :04:40.still a developing country in terms of smartphone volume. And Apple is
:04:41. > :04:44.only about 1% in the last quarter of the Indian market. Yes there is
:04:45. > :04:51.potential, but Apple announced yesterday that the average selling
:04:52. > :04:56.price of an iPhone is around $690, Sophie look at that in terms of the
:04:57. > :05:09.affordability for Indian consumers, it has a long way to go -- so if
:05:10. > :05:11.you. They need to make it more affordable so that it can take off
:05:12. > :05:15.in some of the markets Tim Cook mentioned yesterday like Brazil and
:05:16. > :05:19.India, and also get that engine going again in developed countries
:05:20. > :05:24.like the US and the UK and some of the larger Western European
:05:25. > :05:27.markets. A lot of work to do. We will keep an eye on how Apple shares
:05:28. > :05:34.trade later on when Wall Street starts its day. In after-hours
:05:35. > :05:38.trade, the shares went down. This is our website which has loads of
:05:39. > :05:41.information about Apple. You can also follow our correspondence on
:05:42. > :05:48.Twitter and they will provide much more analysis.
:05:49. > :05:51.Staying with the tech sector, Facebook will also be reporting
:05:52. > :05:54.One of the key projects for the company's boss Mark Zuckerberg
:05:55. > :05:57.is to provide free internet access to billions of people who haven't
:05:58. > :06:01.The programme is called Free Basics and has already been launched
:06:02. > :06:04.in about three dozen countries around the world and giving access
:06:05. > :06:07.to some parts of the internet at no charge to the user.
:06:08. > :06:10.It's billed as a way of helping poorer people get online
:06:11. > :06:14.But critics say it goes against the principal of net
:06:15. > :06:16.neutrality and India's telecom regulator has stopped it for now.
:06:17. > :06:21.Offering something for free doesn't usually bring people out on the
:06:22. > :06:26.streets in opposition. That that is exactly what happened in Hyderabad
:06:27. > :06:32.last month and in these protesters cites, social media giant Facebook
:06:33. > :06:37.and its controversial scheme. Launched your last year, this game
:06:38. > :06:42.gives free access to parts of the Internet including some job sites,
:06:43. > :06:46.government services and of course, Facebook. Local telecom firms pick
:06:47. > :06:50.up the bill. It is being sold as a way of getting more people online
:06:51. > :06:57.but critics believe it threatens Internet freedom and the principle
:06:58. > :07:00.of net neutrality. We want everyone in India to get access to the
:07:01. > :07:06.Internet but it needs to be access to the entire Internet. Quantity of
:07:07. > :07:08.access is important but so is quality. Every single Indian citizen
:07:09. > :07:15.must get access to all of the Internet all of the time. That is
:07:16. > :07:21.essentially what we're fighting for. India's telecom regulator seems
:07:22. > :07:24.to share those concerns. It has now suspended the plan while it finishes
:07:25. > :07:33.a consultation into so-called differential pricing which the
:07:34. > :07:36.service depends on. There is no denying Facebook founder Mark
:07:37. > :07:45.Zuckerberg has been trying hard to win India over. And in a blog post,
:07:46. > :07:48.he said he found opposition to the initiative surprising. He claims
:07:49. > :07:53.India needs to connect 1 billion people to the Internet to make
:07:54. > :07:56.progress and reduce poverty. And he insisted it wasn't about Facebook's
:07:57. > :08:02.commercial interests but giving people opportunities. This is the
:08:03. > :08:06.first time free basics has faced serious opposition in a country
:08:07. > :08:11.where it has tried to launch. It is still a few months until India's
:08:12. > :08:15.telecom regulator gives a decision but until then, expect more charm
:08:16. > :08:24.offensives from Facebook as it faces its biggest battle yet in this
:08:25. > :08:26.booming Internet market. We will have more to say about that later
:08:27. > :08:28.on. It's been another wild ride on
:08:29. > :08:31.China's stock markets today, hitting fresh one-year lows and now there
:08:32. > :08:34.are signs the recent market rout is triggering margin calls and forced
:08:35. > :08:36.liquidation, threatening yet another Rico Hizon is in our
:08:37. > :08:44.Asia Business Hub in Singapore. Hang on to your seats because we are
:08:45. > :08:53.seeing another fall in the mainland stock markets. Another 3% retreat in
:08:54. > :08:57.Shanghai Stocks today, would experience the 6% dive on Tuesday
:08:58. > :09:05.also. That is a drop of more than 9% in two trading sessions. The bad
:09:06. > :09:12.news continues. More poor economic reports pressuring markets and
:09:13. > :09:18.investor sentiment. China's loss is leading to worries of a further
:09:19. > :09:23.slowdown in the Chinese economy. The stock markets in China have slumped
:09:24. > :09:31.by around 24% so far this year and that takes away nearly $1.8 trillion
:09:32. > :09:36.of the value of the mainland indices. Apart from the economic
:09:37. > :09:42.data, not helping sentiment, the head of the statistics bureau is
:09:43. > :09:50.under investigation for alleged corruption. No other information was
:09:51. > :09:57.given. He basically oversees data releases on GDP, consumer prices and
:09:58. > :10:01.other economic indicators. Really very important numbers and the
:10:02. > :10:05.veracity of China's economic data has been increasingly questioned
:10:06. > :10:08.over the past years as the slow pace of the country's expansion has
:10:09. > :10:16.impacted global growth and continue to unnerve financial markets. It
:10:17. > :10:23.continues to fall. Thank you. Let's look at the market very quickly. The
:10:24. > :10:29.situation in China is not affecting Japan or Hong Kong. They are overall
:10:30. > :10:36.much higher following a better session on Wall Street. The price of
:10:37. > :10:41.Brent crude is down a little bit. Here's how Wall Street fared. The
:10:42. > :10:52.Federal Reserve meeting on student today and there will be a statement
:10:53. > :10:54.-- comes to an end today. I will see you soon.
:10:55. > :10:56.Almost all health professionals questioned in a survey for the NSPCC
:10:57. > :11:00.believe that there are not enough mental health services for children