Chicago home price recovery lags

The Chicago area's housing recovery continued to lag that of other cities and the nation, as prices in November fell 1.3 percent from a month earlier, according to a widely watched barometer of the housing market.

On an annual basis, home prices in the Chicago area rose only 0.8 percent in November, the smallest positive gain recorded among the 20 cities included in the S&P/Case-Shiller home price index, released Tuesday.

Nationally, home prices rose 5.5 percent annually for the 20-city composite. Much of that  can be traced to market improvements in once hard-hit places such as Phoenix, where home prices have risen 22.8 percent in 12 months. Other cities recording strong yearly increases included Detroit, up 11.9 percent; Las Vegas, up 10 percent; San Francisco, up 12.7 percent; and Minneapolis, up 11.1 percent.

"Housing is clearly recovering," said David Blitzer, chairman of S&P Dow Jones Indices' index committee. "Prices are rising as are both new and existing home sales."

Most cities saw prices decline in November from their October levels, which Blitzer tied to the market's typical winter weakness.

Nevertheless, Chicago turned in the worst monthly performance among the 20 cities. It was the third consecutive monthly decline for local home prices, which showed signs of strength earlier in 2012. Local prices are on par with their June 2001 levels.

Condominium values in the Chicago market also fell for the second consecutive month. In November, they were down 0.9 percent from October but rose 2.7 percent from November 2011.

Strong foreclosure activity, and the resulting sales of those properties at steep discounts, has held down local home prices and the market's recovery. In 2012, Illinois had the fifth highest state foreclosure rate in the nation, topped only by Florida, Nevada, Arizona and Georgia, RealtyTrac reported last week.

Also hindering the local market's recovery is the foreclosure process in Illinois, a judicial state where all foreclosures are processed by the court system. RealtyTrac said it took an average of 697 days to complete a foreclosure in Illinois last year, meaning those properties may not be listed for resale for two years. During that time, their condition can deteriorate, bringing down the value of that home as well as others in the neighborhood.

Another report issued Tuesday showed some improvement in foreclosure activity in the Chicago area, although mortgage delinquencies and foreclosures here continue to outpace those at the national level.

Housing data provider CoreLogic said that 5.57 percent of mortgages in the Chicago area were in some stage of foreclosure in November, compared with 5.7 percent in October and 6.37 percent in November 2011.

Also, 10.10 percent of mortgages in the Chicago area were considered seriously delinquent, meaning they were at least 90 days past due in November. That compares with 10.19 percent in October and 10.72 percent in November 2011.

The national foreclosure and mortgage delinquency rates were 2.97 percent and 6.45 percent, respectively, in November.

mepodmolik@tribune.com | Twitter @mepodmolik

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CTA: Companies 'enthusiastic' about Red Line mega-projects

The CTA is receiving strong and enthusiastic feedback from the private sector about investing in two mega-projects along the Red and Purple Lines that the transit agency could not afford to undertake on its own for many years, CTA president Forrest Claypool said Monday.

CTA officials and financial advisor Goldman Sachs are studying potential public-private partnerships to construct the proposed Red Line extension to 130th Street; and to demolish and rebuild track, aging stations and crumbling viaduct structure on the North Side, from north of the Belmont station through Evanston, Claypool told a gathering of transportation experts at Northwestern University.

“We believe that partnerships with the private sector are one piece of the key to keeping mass transit healthy,’’ especially in a period of declining federal and state funding, Claypool said.

The response to the CTA outreach to the industry on the two Red Line projects has been “overwhelmingly enthusiastic,’’ Claypool said. The CTA’s goal is not to sell off assets, but rather to lower costs by 10 to 20 percent on major projects, he said.

Both proposed Red Line projects are in planning stages, but they are currently unfunded for the construction phase, officials said.

The approximately 5-mile south extension of the Red Line, from the current terminus at 95th Street to 130th, is estimated to cost at least $1.5 billion. Mayor Rahm Emanuel said when he was campaigning for office that the Red Line extension was his top transit priority and he expected construction would begin within a few years. 

Cost estimates on the Red Purple Modernization project range from about $2 billion to more than $4 billion, depending on the scope of the work that would be undertaken to replace infrastructure that is more than 90 years old, officials said. The north branch of the Red Line serves the largest ridership in the CTA rail system and the transit agency is spending $86 million on temporary repairs to shore up dangerously dilapidated infrastructure.

Claypool said the CTA was not interested in privatizing operation of the Red Line, or selling it off to the private sector. Instead, any deals that might result would involve a public-private partnership to design, build, finance and maintain the rail line, but CTA employees would still run the trains, he said. In return, the venture partners would assume part of the financial risk of building two complicated projects and receive “a small potential share’’ of profit.

Claypool pointed to a $454 million contract that the CTA signed last year with Cubic Transportation Systems to design a new fare payment system as a solid model for future CTA public-private partnerships.

 Under the Cubic deal, the CTA is getting out of the fare-collection business and Cubic is developing an open fare system in which CTA and Pace customers will use a new transit card, called Ventra, or their personal credit or debit cards to pay fares. The new system is scheduled to debut this summer, officials said.

CTA Chicago Cards and Chicago Card Plus cards will be phased out in 2014, officials said. The CTA expects to save about $50 million over the life of the Cubic contract compared to the cost of the CTA continuing to administer fare cards, officials said.

“This deal will be a poster child for the way to structure P3s (public-private partnerships), provided that the new fare equipment works as expected,’’ Thomas Lanctot, a partner at William Blair & Company, told attendees at the William O. Lipinski Symposium on Transportation Policy & Strategy on Northwestern’s Evanston campus.

But experts cautioned that public-private partnerships are not a substitute for shrinking public funding.

“P3s are an excellent tool to stretch the money we have, but they are not free money,’’ said Samara Barend, a vice president and strategic development director at AECOM, a technical and management support services firm. And public-private partnerships will only be attractive to business if the risk is not too high and the partners can make a respectable return on investment, she said.
 
jhilkevitch@tribune.com

Twitter @jhilkevitch

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Yahoo revenue rises on search advertising

(Reuters) - Yahoo Inc reported net revenue of $1.22 billion in the fourth quarter, up 4 percent year-on-year, as an increase in search advertising revenue offset weakness in the Web portal's display ad business.

Net revenue excludes fees shared with partner websites.

Yahoo shares rose 4.5 percent to $21.22 in after hours trading on Monday.

"We got the revenue acceleration we were hoping for. Display was down, but search is doing better" said Sameet Sinha, an analyst at B. Riley Caris.

"As long as in the near-term things are not bad, I think the stock will generally act positively while we wait for Marissa Mayer to deliver," said Sinha.

The company said its fourth-quarter net income was $272.3 million, or 23 cents per share, versus $295.6 million, or 24 cents per share in the year-ago period.

Excluding certain items, Yahoo said it had earnings per share of 32 cents, versus the average analyst expectation of 28 cents according to Thomson Reuters I/B/E/S.

Yahoo said that search revenue increased 4 percent to $482 million in the fourth quarter, while display advertising revenue fell by 3 percent to $591 million.

Chief Executive Marissa Mayer is moving to revive the company's fortunes after several years of declining revenue. Yahoo's stock has risen roughly 30 percent since she became CEO, reaching its highest levels since 2008.

Yahoo said it repurchased $1.5 billion worth of shares during the fourth quarter.

(Reporting by Alexei Oreskovic; Editing by Phil Berlowitz)

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Who are these guys at QB in Super Bowl?

NEW ORLEANS (AP) — No Tom Brady. No Aaron Rodgers. No Ben Roethlisberger. Not a Manning in sight.

Super Bowl has a pair of fresh faces at quarterback, bona fide nobodies as far as the NFL title game goes. But one will leave New Orleans as football's newest star.

For Colin Kaepernick and Joe Flacco, this is new territory. And, of course, exactly where they want to be.

Flacco, the only quarterback to win a playoff game in each of his first five NFL seasons, will lead the AFC champion Baltimore Ravens into Sunday's matchup against the NFC-winning San Francisco 49ers and Kaepernick, a backup for most of his two seasons.

It's the first time in more than a decade that the big game doesn't feature one of the big five household names in the glamour position.

You can't get much fresher than quarterbacks who never have gotten this far before.

"At the start of the season, I was just hoping to get on the field some way, somehow," said Kaepernick, the backup for Alex Smith, who took the 49ers to the conference final last season.

He got that chance after Smith sustained a concussion on Nov. 11, and hasn't seen the bench since.

Win this one and he'll have a piece of history, joining a heady quarterback club that includes Hall of Famers Joe Montana and Steve Young, who guided the 49ers to five NFL titles — a victory every time they played. No. 6 would tie the team with Roethlisberger's Pittsburgh Steelers — a record for most Super Bowl wins.

A second-round draft pick in 2011 out of Nevada — not exactly Alabama — Kaepernick has the shortest pro resume of any Super Bowl quarterback. It's impressive, nonetheless. His legs (181 yards rushing against Green Bay, a record for the position) and his arm (105.9 passer rating in the postseason) are the main reasons San Francisco is in its first NFL title game in 18 years.

"Anybody that is out there on the football field, you want to see them produce and get results," left tackle Joe Staley said. "With Colin, his first couple of starts, you did not know what to expect because we had not seen him out there as a starting quarterback. He did amazing and he has all season, as well as the playoffs. I think it was one of those things where we saw him in practice and we just wanted to see how he was going to handle the situation in the games. He has done that."

Still, he's new to this environment and that hardly seems to faze Kaepernick.

"One thing I've always said about him from the start is he comes off as a guy that has a lot of confidence," said center Jonathan Goodwin, who won a Super Bowl snapping for Drew Brees and the Saints three years ago. "I'm not just saying that. You can feel it by the way he acts and talks."

Flacco has that air of certainty, too, but at least it's built on a more substantial foundation, including an 8-4 mark in the playoffs, with six road wins — the most for any quarterback, Montana and Young included. That goes for Baltimore's John Unitas, too.

Nobody is comparing Flacco to them just yet, except for the self-belief he brings to the job.

"There are a lot of different ways to lead, and the bottom line is it's about motivating your players to get the best out of them, and having belief that you can go do it in any situation," Flacco said last week.

"You've got to do it your own way. And I think, naturally, as you get more comfortable with people and people understand you more, and you become more confident in them, and they become more confident in you, you become more vocal as time goes on."

And you become a Super Bowl quarterback.

___

Online: http://pro32.ap.org/poll and http://twitter.com/AP_NFL

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Singer Chris Brown to be questioned over alleged punch: police

(Reuters) – R&B singer Chris Brown will be questioned as part of an investigation into allegations that he punched a man during a fight over a parking space in West Hollywood, the Los Angeles County Sheriff’s Department said on Monday.

Deputies responded to a call on Sunday about a fight involving six men on Santa Monica Boulevard, the department said. Witnesses said the Grammy-winning singer had assaulted a man during the brief altercation.

No arrests were made. The alleged victim was not named in a department statement that said Brown and his entourage had left the scene before deputies arrived.

Investigators plan to contact the singer about the incident at a later time, according to the department.

Brown, 23, is serving a five-year probation sentence after pleading guilty to assaulting fellow R&B star and former girlfriend Rihanna on the eve of the 2009 Grammy awards.

(Reporting by Colleen Jenkins; Editing by Lisa Von Ahn)

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Soldier who lost 4 limbs has double-arm transplant

On Facebook, he describes himself as a "wounded warrior...very wounded."

Brendan Marrocco was the first soldier to survive losing all four limbs in the Iraq War, and doctors revealed Monday that he's received a double-arm transplant.

Those new arms "already move a little," he tweeted a month after the operation.

Marrocco, a 26-year-old New Yorker, was injured by a roadside bomb in 2009. He had the transplant Dec. 18 at Johns Hopkins Hospital in Baltimore, his father said Monday.

Alex Marrocco said his son does not want to talk with reporters until a news conference Tuesday at the hospital, but the younger Marrocco has repeatedly mentioned the transplant on Twitter and posted photos.

"Ohh yeah today has been one month since my surgery and they already move a little," Brendan Marrocco tweeted Jan. 18.

Responding to a tweet from NASCAR driver Brad Keselowski, he wrote: "dude I can't tell you how exciting this is for me. I feel like I finally get to start over."

The infantryman also received bone marrow from the same dead donor who supplied his new arms. That novel approach is aimed at helping his body accept the new limbs with minimal medication to prevent rejection.

The military sponsors operations like these to help wounded troops. About 300 have lost arms or hands in Iraq or Afghanistan.

Unlike a life-saving heart or liver transplant, limb transplants are aimed at improving quality of life, not extending it. Quality of life is a key concern for people missing arms and hands — prosthetics for those limbs are not as advanced as those for feet and legs.

"He was the first quad amputee to survive," and there have been four others since then, Alex Marrocco said.

The Marroccos want to thank the donor's family for "making a selfless decision ... making a difference in Brendan's life," the father said.

Brendan Marrocco has been in public many times. During a July 4 visit last year to the Sept. 11 Memorial with other disabled soldiers, he said he had no regrets about his military service.

"I wouldn't change it in any way. ... I feel great. I'm still the same person," he said.

The 13-hour operation was led by Dr. W.P. Andrew Lee, plastic surgery chief at Johns Hopkins. It was the seventh double-hand or double-arm transplant done in the United States.

Lee led three of those earlier operations when he worked at the University of Pittsburgh, including the only above-elbow transplant that had been done at the time, in 2010.

Marrocco's "was the most complicated one" so far, Lee said in an interview Monday. It will take more than a year to know how fully Marrocco will be able to use the new arms.

"The maximum speed is an inch a month for nerve regeneration," he explained. "We're easily looking at a couple years" until the full extent of recovery is known.

While at Pittsburgh, Lee pioneered the immune-suppression approach used for Marrocco. The surgeon led hand-transplant operations on five patients, giving them marrow from their donors in addition to the new limbs. All five recipients have done well, and four have been able to take just one anti-rejection drug instead of combination treatments most transplant patients receive.

Minimizing anti-rejection drugs is important because they have side effects and raise the risk of cancer over the long term. Those risks have limited the willingness of surgeons and patients to do more hand, arm and even face transplants.

Lee has received funding for his work from AFIRM, the Armed Forces Institute of Regenerative Medicine, a cooperative research network of top hospitals and universities around the country that the government formed about five years ago. With government money, he and several other plastic surgeons around the country are preparing to do more face transplants, possibly using the new immune-suppression approach.

Marrocco expects to spend three to four months at Hopkins, then return to a military hospital to continue physical therapy, his father said. Before the operation, he had been fitted with prosthetic legs and had learned to walk on his own.

He had been living with his older brother in a specially equipped home on New York's Staten Island that had been built with the help of several charities. Shortly after moving in, he said it was "a relief to not have to rely on other people so much."

The home was heavily damaged by Superstorm Sandy last fall.

Despite being in a lot of pain for some time after the operation, Marrocco showed a sense of humor, his father said. He had a hoarse voice from the tube that was in his throat during the long surgery and decided he sounded like Al Pacino. He soon started doing movie lines.

"He was making the nurses laugh," Alex Marrocco said.

___

Associated Press Writer Stephanie Nano in New York contributed to this report.

___

Online:

Army regenerative medicine:

http://www.afirm.mil/index.cfm?pageid=home

and http://www.afirm.mil/assets/documents/annual_report_2011.pdf

___

Follow Marilynn Marchione at http://twitter.com/MMarchioneAP .

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Lucasfilm pushes pause on 3-D 'Star Wars' prequels

LOS ANGELES (AP) — The force isn't with the 3-D versions of the "Star Wars" prequels.

Lucasfilm said in a statement Monday that it's postponing the scheduled 3-D releases of "Star Wars: Episode II — Attack Of The Clones" and "Episode III — Revenge of the Sith" this fall to instead focus its efforts on "Star Wars: Episode VII."

The Walt Disney Co. confirmed Friday that J.J. Abrams, creator of the TV series "Lost" and director of 2009's "Star Trek" movie, will direct the seventh installment of the franchise, set for a 2014 release.

Disney bought "Star Wars" maker Lucasfilm last month for $4.06 billion.

"Episode I — The Phantom Menace" was released in 3-D last February and earned $22.4 million domestically its opening weekend.

The original prequels were released from 1999 to 2005.

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2012 stocks: How Illinois cos. fared

If you invested heavily in Illinois companies that provide consulting services, you had little reason to celebrate in 2012.

While the Standard & Poor's 500 index ended the year up 13 percent, most large businesses in the region that counsel other companies on how to improve their operations saw their stock prices drop.

Business support services was one of the few sectors getting clobbered in a 2012 Tribune ranking of Illinois and northwest Indiana stocks' performance.

Stock prices gained at about 70 percent of the 127 companies on the list, and about half outperformed the S&P 500. Bank owners such as Taylor Capital Group emerged from their 2011 doldrums, and Ulta Salon Cosmetics & Fragrance Inc. and Discover Financial Services marked their second consecutive year of soaring stock prices.

The year's biggest decliner, down 76 percent, was Groupon, as once-torrid revenue growth at the daily deals offerer started slowing.

Career Education was the second-worst performer; its stock fell 56 percent. The highly scrutinized for-profit school chain said it would close campuses and cut jobs amid sinking revenue and financial losses.

Sectors boosted by broad gains in 2012 included electrical parts and equipment, industrial machinery, and specialty chemicals.

Of seven Illinois banks on the list, all but one outperformed the S&P 500, with price appreciation of those six ranging from 16 to 86 percent.

In contrast, stocks of four of five professional services firms — Navigant Consulting, Huron Consulting Group, Heidrick & Struggles International and R.R. Donnelley & Sons — closed down 2 to 38 percent.

Each had its own set of issues.

Navigant's services, for example, include advising companies that face disputes, litigation and investigations, including government probes, as well as businesses that need help valuing potential mergers and acquisitions.

"You see fewer government investigations during an election year, as regulators are leaving their jobs, and they don't want to start new ones," said Tobey Sommer, a SunTrust Robinson Humphrey analyst. "Also, worries about the 'fiscal cliff' slowed M&A because CEOs didn't want to look foolish acquiring a company in September ahead of the fiscal cliff when they might have been able to buy it for 20 percent less in January had we gone off."

Meanwhile, Heidrick's troubles included a slowing market for executive searches. In early 2012, analysts expected Heidrick's annual earnings to be in the range of about $1.30 per share. It appears that it will earn closer to 57 cents a share.

Huron's earnings estimates during 2012 were also trimmed, to about $2.10 from about $2.40 a share as the timing of fee payments to its health care consulting business proved volatile.

"Its underlying demand is strong," but an increasing number of clients had signed contracts where a larger portion of revenue was contingent on the outcome of Huron's consulting work, said Randle Reece, analyst with Avondale Partners LLC. That made it harder for the company and the analysts who cover it to predict the timing of revenues, since they are deferred.

For investors interested in "Dumpster diving," Morningstar Inc. considers Exelon, WMS Industries and Caterpillar to be high quality yet undervalued this year, said Heather Brilliant, chief equities strategist.

Navigant is among the region's beaten-down stocks liked by stock research firm EVA Dimensions LLC. "Its fundamentals are improving, and it's really cheap," said EVA analyst Andrew Zamfotis.

Best of the best

Here are the top three stock gainers of 2012:

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Fire at crowded nightclub kills at least 200 in Brazil

SANTA MARIA, Brazil (Reuters) - A nightclub fire killed at least 233 people in southern Brazil early on Sunday when a band's pyrotechnics show set the building ablaze and fleeing partygoers stampeded toward blocked and overcrowded exits in the ensuing panic, officials said.

The blaze in the university town of Santa Maria was ignited by sparks from pyrotechnics used by the band for visual effects. They set fire to soundproofing on the ceiling and the club rapidly filled with toxic smoke, local fire officials said.

Most of those who died were suffocated by fumes, fire brigade Sergeant Robson Muller told Reuters. Others were crushed in the stampede.

"Smoke filled the place instantly, the heat became unbearable," survivor Murilo Tiescher, a medical student, told GloboNews TV. "People could not find the only exit. They went to the toilet thinking it was the exit and many died there."

Fire officials said at least one exit was locked and that club bouncers, who at first thought those fleeing were trying to skip out on bar tabs, initially blocked patrons from leaving. The security staff relented only when they saw flames engulfing the ceiling.

The tragedy, in a packed venue in one of Brazil's most prosperous states, comes as the country scrambles to improve safety, security and logistical shortfalls ahead of the 2014 World Cup soccer tournament and the 2016 Olympics, both intended to showcase the economic advances and first-world ambitions of Latin America's largest nation.

In Santa Maria, a city of more than 275,000 people, rescue workers and weary officials wept alongside family and friends of the victims at a local gymnasium being used as a makeshift morgue.

"It's the saddest, saddest day of my life," said Neusa Soares, the mother of one of those killed, 22-year-old Viviane Tolio Soares. "I never thought I would have to live to see my girl go away."

President Dilma Rousseff cut short an official visit to Chile and flew to Santa Maria, where she wept as she spoke to relatives of the victims at the gym.

"All I can say at the moment is that my feelings are of deep sorrow," said Rousseff, who began her political career in Rio Grande do Sul, the state where the fire occurred.

News of the fire broke on Sunday morning, when local news broadcast images of shocked people outside the nightclub called Boate Kiss. Gradually, grisly details emerged.

"BARRIER OF THE DEAD"

"We ran into a barrier of the dead at the exit," Colonel Guido Pedroso de Melo, commander of the fire brigade in Rio Grande do Sul, said of the scene that firefighters found on arrival. "We had to clear a path to get to the rest of those that were inside."

Officials said more than 1,000 people may have been in the club, possibly exceeding its legal capacity. Though Internet postings about the venue suggested as many as 2,000 people at times have crammed into the club, Pedroso de Melo said no more than half that should have been inside.

He said the club was authorized to be open but its permit was in the process of being renewed.

However, Pedroso de Melo did point to several egregious safety violations - from the flare that went off during the show to the locked door that kept people from leaving.

The club's management said in a statement that its staff was trained and prepared to deal with any emergency. It said it would help authorities with their investigation.

When the fire began at about 2:30 a.m., many revelers were unable to find their way out in the chaos.

"It all happened so fast," survivor Taynne Vendrusculo told GloboNews TV. "Both the panic and the fire spread rapidly, in seconds."

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In Asia's trend-setting cities, iPhone fatigue sets in

SINGAPORE (Reuters) - Apple Inc's iconic iPhone is losing some of its luster among Asia's well-heeled consumers in Singapore and Hong Kong, a victim of changing mobile habits and its own runaway success.

Driven by a combination of iPhone fatigue, a desire to be different and a plethora of competing devices, users are turning to other brands, notably those from Samsung Electronics Co Ltd, eating into Apple's market share.

In Singapore, Apple's products were so dominant in 2010 that more devices here ran its iOS operating system per capita than anywhere else in the world.

But StatCounter http://gs.statcounter.com, which measures traffic collected across a network of 3 million websites, calculates that Apple's share of mobile devices in Singapore - iPad and iPhone - declined sharply last year. From a peak of 72 percent in January 2012, its share fell to 50 percent this month, while Android devices now account for 43 percent of the market, up from 20 percent in the same month last year.

In Hong Kong, devices running Apple's iOS now account for about 30 percent of the total, down from about 45 percent a year ago. Android accounts for nearly two-thirds.

"Apple is still viewed as a prestigious brand, but there are just so many other cool smartphones out there now that the competition is just much stiffer," said Tom Clayton, chief executive of Singapore-based Bubble Motion http://www.bubblemotion.com, which develops a popular regional social media app called Bubbly.

Where Hong Kong and Singapore lead, other key markets across fast-growing Asia usually follow.

"Singapore and Hong Kong tend to be, from an electronics perspective, leading indicators on what is going to be hot in Western Europe and North America, as well as what is going to take off in the region," said Jim Wagstaff, who runs a Singapore-based company called Jam Factory http://www.jamfactoryonline.com developing mobile apps for enterprises.

Southeast Asia is adopting smartphones fast - consumers spent 78 percent more on smartphones in the 12 months up to September 2012 than they did the year before, according to research company GfK http://www.gfkrt.com.

IN WITH THE YOUNG CROWD

Anecdotal evidence of iPhone fatigue isn't hard to find: Where a year ago iPhones swamped other devices on the subways of Hong Kong and Singapore they are now outnumbered by Samsung and HTC Corp smartphones.

While this is partly explained by the proliferation of Android devices, from the cheap to the fancy, there are other signs that Apple has lost followers.

Singapore entrepreneur Aileen Sim, recently launched an app for splitting bills called BillPin http://www.billpin.com, settling on an iOS version because that was the dominant platform in the three countries she was targeting - Singapore, India and the United States.

"But what surprised us was how strong the call for Android was when we launched our app," she said.

Indeed, 70 percent of their target users - 20-something college students and fresh graduates - said they were either already on Android or planned to switch over.

"Android is becoming really hard to ignore, around the region and in the U.S. for sure, but surprisingly even in Singapore," she said. "Even my younger early-20s cousins are mostly on Android now."

BillPin launched an Android version this month.

Napoleon Biggs, chief strategy officer at Gravitas Group http://www.gravitas.com.hk, a Hong Kong-based mobile marketing company, said that while Apple and the iPhone remained premium brands there, Samsung's promotional efforts were playing to an increasingly receptive audience.

For some, it is a matter of wanting to stand out from the iPhone-carrying crowd. Others find the higher-powered, bigger-screened Android devices better suited to their changing habits - watching video, writing Chinese characters - while the cost of switching devices is lower than they expected, given that most popular social and gaming apps are available for both platforms.

"Hong Kong is a very fickle place," Biggs said.

Janet Chan, a 25-year-old Hong Kong advertising executive, has an iPhone 5 but its fast-draining battery and the appeal of a bigger screen for watching movies is prodding her to switch to a Samsung Galaxy Note II.

"After Steve Jobs died, it seems the element of surprise in product launches isn't that great anymore," she said.

To be sure, there are still plenty of people buying Apple devices. Stores selling their products in places such as Indonesia were full over the Christmas holidays, and the company's new official store in Hong Kong's Causeway Bay has queues snaking out of the door most days.

But the iPhone's drop in popularity in trendy Hong Kong and Singapore is mirrored in the upmarket malls of the region.

"IPhones are like Louis Vuitton handbags," said marketing manager Narisara Konglua in Bangkok, who uses a Galaxy SIII. "It's become so commonplace to see people with iPads and iPhones so you lose your cool edge having one."

In the Indonesian capital Jakarta, an assistant manager at Coca Cola's local venture, Gatot Hadipratomo, agrees. The iPhone "used to be a cool gadget but now more and more people use it."

There is another influence at play: hip Korea. Korean pop music, movies and TV are hugely popular around the region and Samsung is riding that wave. And while the impact is more visible in Hong Kong and Singapore, it also translates directly to places like Thailand.

"Thais are not very brand-loyal," says Akkaradert Bumrungmuang, 24, a student at Mahidol University in Bangkok. "That's why whatever is hot or the in-thing to have is adopted quickly here. We follow Korea so whatever is fashionable in Korea will be a big hit."

(Additional reporting by Lee Chyen Yee in Hong Kong; Khettiya Jittapong and Amy Sawitta Lefevre in Bangkok, and Andjarsari Paramaditha in Jakarta; Editing by Emily Kaiser)

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