Apple shares extend downward slide

Dec 14, 2012
Concerns that the latest iPhone may not be a hit in China caused Apple shares on Friday to extend their slide from a record high price hit in September.

Concerns that the latest iPhone may not be a hit in China caused Apple shares on Friday to extend their slide from a record high price hit in September.

Apple shares were down 3.76 percent to $509.79 at the close of the Nasdaq exchange, with the price eroding further in after-hours trades.

Stock in the iPhone, iPad, iPod and maker have lost more than a quarter of their value since topping $700 per share in September as the was poised to launch in the US and a half-dozen other countries.

The latest bite out of Apple shares came as the iPhone 5 made a lackluster debut in China and an analyst reported that Apple has cut orders for smartphone parts.

"Based on our survey, we believe the sale of iPhone 5 is unlikely to be successful in China," said a note from TH Capital.

The note said Apple's sales channel in China "has room for better optimization of sales and service" and that the "high price of iPhone 5 turns people away."

Jefferies analyst Peter Misek scaled back estimates for iPhone sales, saying "component suppliers have seen large order cuts as the assembly bottleneck has not improved as much as hoped... We had thought Apple would be further along the assembly ramp at this point and believe Apple will see extra charges due to the excess component inventory."

Some on Friday scaled back their predictions of how high Apple stock will rise but still expected it to gain ground.

Previous iPhone model launches in China were met with stampedes by eager buyers and the emergence of a black market for the coveted Apple .

The 5 reception was subdued; with some analysts suspecting prices for Apple's unabashedly premium products was scaring away customers.

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User comments : 4

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VendicarD
1 / 5 (3) Dec 14, 2012
Back in Sept., I said sell Apple.

Listen to Vendicar. He is always right.
btb101
2.3 / 5 (3) Dec 15, 2012
after playing with one in the apple shop, i have to say i do not like them. they feel cheap, very plastic, their size makes them hard to hold and the lack of support for the 3 year old models shows that apple has a policy of forcing their users to upgrade when apple wants them too, not when the consumer wants too.
add to the fact that they now have new adapters that are needed to keep your existing technology compatible and you can see why money cautious china are so reluctant to adopt to the new phone.
ormondotvos
not rated yet Dec 16, 2012
Prestige will sell them. Chinese are ridiculously status conscious.
VendicarD
5 / 5 (1) Dec 17, 2012
Apple was below $500 earlier today. To get their stock value back up Apple made an immediate announcement that Chinese sales of their iwhaterver had been better than they had expected.

They will be below 500 by the end of the week.

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