NEW YORK -- Worldwide sales of smartphones in the second quarter grew at the slowest pace since 2013 as sales in China declined for the first time, according to research firm Gartner Inc.
Gartner said last week that smartphone sales grew 13.5 percent to 330 million units in the second quarter compared with a year earlier. While demand continues to increase in emerging markets, Gartner says overall smartphone sales were mixed. Smartphone sales in China fell 4 percent year-over-year -- the first such decline for the world's most populous country and biggest market for smartphones.
China accounted for 30 percent of total smartphone sales in the second quarter. But Gartner says it has reached saturation, as its phone market is driven by replacement purchases instead of first-time buyers.
Samsung "premium" phones continued to be challenged by Apple's large-screen iPhones during the quarter, Gartner said. Samsung lost market share while Apple gained some.
-- The Associated Press
Apple raises $1.65 billion in bond deal
Apple Inc. raised $1.65 billion with a debut Australian debt sale that's the largest bond deal ever Down Under by a nonfinancial company.
Apple, which until November had only sold U.S. currency bonds, has since expanded its debt issuance to euros, yen, pounds and Swiss francs as well as Aussie dollars. It follows a $512 million inaugural offering last month from brewer SABMiller Plc and joins other overseas-based issuers such as Total SA and Toronto-Dominion Bank in making Australian debuts over the past 12 months.
"It certainly looks like a successful deal, especially if you consider the prevailing sentiment at this moment, it's not been the most positive of days to issue," said John Sorrell, head of credit at Nikko Asset Management Ltd. in Australia, referring to global market selloffs.
The deal from Apple eclipses the $730 million transaction from BHP Billiton Ltd. in March that had been this year's largest non-financial company bond sale, according to data compiled by Bloomberg.
The sale was managed by Commonwealth Bank of Australia, Deutsche Bank AG and Goldman Sachs Group Inc.
-- Bloomberg News
Kenya weighs who should run oil lab
Kenya is considering whether a $40 million to $50 million mineral and oil analysis laboratory that would give the nation better access to its resources information should be privately run or government-operated.
"This will service the whole of East Africa, it's in demand by industry as it reduces their costs and the time to process the data," Mining Secretary Najib Balala said in an interview Thursday in the capital, Nairobi.
Companies including Tullow Oil Plc. have found oil in Kenya, which has an estimated 600 million barrels so far, while neighboring Uganda could hold 6.5 billion barrels.
Kenya is the world's third-biggest producer of soda ash, used to make glass, and ranks sixth in output of fluorspar, used in steel, according to the U.S. Geological Survey. It also has deposits of coal, gold, rubies and sapphires. Randgold Resources Ltd., a producer of the metal in Africa, said last year it planned a study of Kenya's gold-mining potential.
Shortly after his appointment in 2013, Balala canceled 43 prospecting and mining licenses after saying the government discovered irregularities in the way they were granted.
-- Bloomberg News
Uber plans free in-car Wi-Fi for India
HONG KONG -- In India, a country notorious for city-snarling traffic jams, Uber is hoping free in-car Wi-Fi will lure customers who don't want long transit times to take them offline.
Uber, the ride-sharing company, said it had signed a partnership with India's largest mobile carrier, Bharti Airtel, to provide the service. It was the latest in a string of moves by Uber designed to court passengers in India, a huge market that it has identified as critical for growth.
The company said in a news release that Bharti Airtel would operate the Wi-Fi through its new fourth-generation network in all 18 cities, including Mumbai, Delhi and Bangalore, where Uber operates. As part of the deal, Uber is also offering discounted cellphone plans for drivers and accepting payments using Airtel's mobile payment platform.
Although Uber has been expanding rapidly in Asian markets like India and China, it faces many local competitors and has been rolling out special features in each market to compete. In India, the ride-sharing competitor Ola raised $400 million in a recent fundraising round.
The new initiative shows some of the difficulties Uber faces in India, where the number of smartphone users is growing, but they often have slow, low-cost phones and frequently turn off mobile data to save money.
-- The New York Times
Swiss watch exports tumble 9.3 percent
Swiss watch exports slid the most in more than five years in July amid plunging shipments to Asia, as Chinese tourists bought more timepieces in Europe and avoided South Korea following the outbreak of a deadly virus.
Exports fell 9.3 percent to $2 billion, the steepest monthly decline since November 2009, according to figures released last week by the Federation of the Swiss Watch Industry. Sales to China tumbled 40 percent, compared with a 49 percent increase in July 2014. Shipments were down 20 percent to South Korea and 29 percent to Hong Kong, offset partly by higher exports to Europe.
"The China export number may be shocking on first glance, but it needs to be compared to the extremely high exports of last year," said Rene Weber, an analyst at Bank Vontobel AG in Zurich. "Chinese tourists traveled to Europe to buy more Swiss watches, so it shows the strength of tourism in Europe."
Switzerland's watch industry has been struggling in China since 2012, when the country began a crackdown on extravagant spending among government officials. China's recent devaluation of the yuan adds to its woes, as it may impact sales when converted into local currencies, and tourists may spend less abroad.
The debut of the Apple Watch is an additional cause of worry for the Swiss watch industry, as it may lead retailers to reduce orders of timepieces on concern of rising competition. Shoppers may also forgo a Swiss watch in favor of an Apple Watch as they are in similar price segments.
-- Bloomberg News
Hackers target India, Southeast Asia
BEIJING -- A sophisticated cyberespionage group, probably based in China, is taking advantage of India's weak cyberdefenses to burrow into government bodies and academic institutions to steal sensitive diplomatic information, a leading U.S. network security company alleged late last week.
The group has also attacked other South and Southeast Asian countries, as well as Tibetan activists outside China, over the past four years, FireEye said.
But the group seemed particularly interested in India and its border disputes with neighboring countries.
"It is most likely Chinese," said Bryce Boland, FireEye's chief technology office for Asia Pacific, in an interview. "We don't have a smoking gun, but all roads lead to China."
The report is likely to fuel mistrust between Asia's two most populous countries, which went to war in 1962 and continue to dispute large parts of their 2,500-mile border. India's border with Pakistan is also disputed and heavily militarized, although India recently resolved another border dispute with Bangladesh to the east.
The cyber group sent targeted spear-phishing emails to its intended victims, with Microsoft Word attachments containing information on regional diplomatic issues, FireEye said.
The group was careful not to leave traces that could pinpoint where the attacks were coming from. But the operation, which runs throughout the week and round the clock, appeared sophisticated and well-resourced.
-- The Washington Post
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