According to latest reports from multiple sources, Apple Inc. Claims that it has sold more than 2 Million Apple iPhone 5, after just 3 days of their launch in China; but still Apple shares tumble.
Apple again managed to pull off a heavy feat by selling more than 2 Million units in less than 3 days of their release in China. This just demonstrates the following of Apple back in Asian countries. 2 Million device sales in 3 days would actually prove a lot for Apple, but still their shares have tumbled.
During the three days after its launch there on Friday, the event marked China’s best-selling iPhone rollout ever. But the highly anticipated release in China, Apple’s second-biggest market, has not eased worries about stiffer competition in smartphones that are driving a slide in the share price of the world’s most valuable technology company.
Apple shares fell 3.8 percent on Friday to $509.79 after the iPhone 5′s China debut, and lowered Apple’s price target to $575 from $675, citing diminishing hype around the iPhone 5 and improving competition in smartphones. Apple’s latest iPhone made its global debut with a launch in the United States and 30 other countries in September, selling more than 5 million in its first three days on the market.
Apple Chief Executive Tim Cook said in a statement:
“Customer response to iPhone 5 in China has been incredible, setting a new record with the best first weekend sales ever in China”
This is the first time Apple has announced China sales numbers for the iPhone. Analysts say Apple’s longer-term outlook in the China market, however, may hinge on expanding its partners in that country to include China Mobile Ltd, the country’s top telecoms carrier.
The 2 million figure will come as a surprise to traders who pushed Apple to a 10-month low Friday after reports that Apple Stores in Beijing and Shanghai were nearly devoid of customers the day of the launch. It turns out that most of the action over the weekend was at the retail outlets of Apple’s carrier partners — China Unicom and China Telecom — where the phones were being sold on long contracts with generous price subsidies. See A not-so-quiet weekend for Apple in China and Taiwan.
Just before the news broke, Citigroup’s Glen Yeung lowered his Apple price target to $575 from $675 and changed his recommendation to Neutral from Buy. On Friday, UBS’ Steve Milunovich lowered his price target from $775 to $700, citing sources who told him they didn’t expect the iPhone 5 to do as well in China as the iPhone 4S.
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