Monday, May 11, 2015

First time in six years, China smartphone market shrinks; How rich countries can make a difference about inequality; Picasso painting sets auction record

1 First time in six years, China smartphone market shrinks (BBC) Smartphone shipments to the world's biggest market, China, have contracted for the first time in six years, according to market research firm IDC. The number of smartphones shipped fell by 4% from a year ago to 98.8 million units in the January to March period. A build up of unsold stock is leading to a slowdown in the maturing Chinese mobile market, the firm said.

"China is often thought of as an emerging market but the reality is that the vast majority of phones sold in China today are smartphones, similar to other mature markets like the US, UK, Australia, and Japan," said Kitty Fok, managing director at IDC China. China surpassed the US to become the world's largest smartphone market in 2011.

IDC expects flat growth in Chinese market this year, adding that as the country's growth slows, Chinese manufacturers will focus on expanding in global markets such as India and South East Asia. US tech giant Apple overtook China's Xiaomi in the first quarter to be the top smartphone provider in the country thanks to consumers' preferences for the larger screens of the latest iPhone models, according to IDC. Apple now accounts for 14.7% of the market, compared with 13.7% for Xiaomi.


2 How rich countries can make a difference about inequality (Kenneth Rogoff in The Guardian) Europe’s migration crisis exposes a fundamental flaw, if not towering hypocrisy, in the ongoing debate about economic inequality. Wouldn’t a true progressive support equal opportunity for all people on the planet, rather than just for those lucky enough to have been born and raised in rich countries?

Many thought leaders in advanced economies advocate an entitlement mentality. But the entitlement stops at the border. If current concerns about inequality were cast entirely in political terms, this inward-looking focus would be understandable; after all, citizens of poor countries cannot vote in rich ones. But the rhetoric of the inequality debate in rich countries betrays a moral certitude that conveniently ignores the billions of people elsewhere who are far worse off.

Only about 15% of the world’s population lives in developed economies. Yet advanced countries still account for more than 40% of global consumption and resource depletion. Yes, higher taxes on the wealthy make sense as a way to alleviate inequality within a country. But that will not solve the problem of deep poverty in the developing world.

Economic pressures are a potent force for migration. Unfortunately, most of the debate in rich countries today, on both the left and the right, centers on how to keep other people out. That may be practical, but it certainly is not morally defensible. And migration pressure will increase markedly if global warming unfolds according to climatologists’ baseline predictions.

As the world becomes richer, inequality inevitably will loom as a much larger issue relative to poverty. Regrettably, however, the inequality debate has focused so intensely on domestic inequality that the far larger issue of global inequality has been overshadowed. That is a pity, because there are many ways rich countries can make a difference.

They can provide free online medical and education support, more development aid, debt write-downs, market access, and greater contributions to global security. The arrival of desperate boat people on Europe’s shores is a symptom of their failure to do so.


3 Picasso painting sets auction record (Straits Times) A Picasso masterpiece fetched more than $179 million in New York, smashing the world record for the most expensive art sold at auction in what was dubbed the sale of the century. The oil painting, “The Women of Algiers (Version 0),” sold for $179,365,000 after more than 11 minutes of furious bidding from telephone buyers at a packed auction room at Christie’s. 

The previous world record for a painting sold at auction was $142.4 million, set for British painter Francis Bacon’s “Three Studies of Lucian Freud,” which was sold by Christie’s in New York in 2013.  The 1955 painting by Pablo Picasso is one of the last major paintings by the Spanish master still in private hands. He painted several versions until he settled on the nearly 121-by-152-cm canvas.

A rival highlight of the evening sale was a bronze statue by Alberto Giacometti called “Man Pointing,” estimated to be worth $130 million, which has also been tipped as a potential record breaker. Swiss sculptor Giacometti already holds the record for the most expensive sculpture sold at auction with his “Walking Man I” fetching $104.3 million in London in 2010.

Exponential growth in the art market, particularly for modern and contemporary works, is attributed to a growing number of private investors around the world and burgeoning interest in Asia and the Gulf. The proceeds from public art auctions rose 26 per cent from $12.05 billion in 2013 to $15.2 billion in 2014, and grew 422 per cent between 2000 and 2014, according to Artprice, a leader in art market information. 

Artprice CEO Thierry Ehrmann said interest would be particularly strong for the Giacometti statue, which it believed could go as high as $175 to $200 million and eclipse the Picasso. “This will be the sale of the century,” said Ehrmann. “It’s a tipping point in the history of art.” 

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