No sweet Apple for China: shares drop on poor sales
Tech giant Apple's stock has plunged to four percent, falling to as low as 509 dollars a share amid disappointing launch of iPhone 5 in China.
The latest iPhone went on sale in China Friday, but according to a report in The Wall Street Journal, the initial reception for the device was much more tepid than in previous years.
"Apple's flagship store in Beijing's upscale Sanlitun shopping district began selling the iPhone 5 for the first time on Friday in what was arguably the least eventful launch of an Apple device in the company's four-year history in the Chinese capital," the paper said.
The paper pointed out that there are several possible reasons for this, a new company policy requiring customers in China to apply online a day in advance to secure a window of time to pick up an iPhone, Mashable reports.
According to the report, to make the matter worse, multiple analysts have cut their price target on Apple's stock this week.
Steve Milunovich, an analyst with UBS Investment Research, cut his price target on the stock to 700 dollars from 780 dollars on Friday.
Milunovich specifically cited concerns about sales of the iPhone 5 falling short of those of the iPhone 4S, the report said.