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Analyst: Apple iPhone 5, game over

Posted: , by Alan F.

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Analyst: Apple iPhone 5, game over
Is this a bearish formation?

Is this a bearish formation?

Following a downgrade of Apple's shares by Citigroup, shares of Apple's suppliers are dropping sharply Monday morning. One analyst by the name of Jeff Pu, who works for Taipei-based Fubon Financial Holding Co., told clients that "The most important message is ‘iPhone 5 is game over,’ as demand appears to be weaker than expected -- i.e., US peaking, China launch just so so." Earlier Sunday night, Apple CEO Tim Cook raved over the 2 million units of the Apple iPhone 5 sold in China over the weekend. Cook said it was the largest launch weekend sales figure for the device in the country.

On Monday, Citigroup analyst Glen Yeung downgraded Apple to neutral from buy, which is Wall Street-speak for "sell". He reduced his target on the stock to $575 from $675 after supply chain checks showed that Apple was cutting orders which Yeung says raises questions about the strength of the Apple iPhone 5.

Foxconn parent Hon Hai Precision is down 5.5% on Monday to lead the drop in Apple suppliers' stock prices. Apple's shares declined 3.79% on Friday and is poised to open lower on Monday morning on NASDAQ as well. On December 5th, on fears that the Nokia Lumia 920T being offered on China Mobile would replace the Apple iPhone 5 in popularity in China, Apple's shares dropped 6.4% or $35 billion. That was the steepest drop in any U.S. stock since 1988.

Other analysts have said that Apple has lost a step or two. Check out some of those comments below.

"Apple is still a very popular product but it’s not breaking massive records like it would have two years ago. Apple is losing its luster. It’s not the prestige status symbol it once was, and it’s not the market leader any more for high-end smart phones."-Shaun Rein, managing director,China Market Research Group

Apple "is losing some steam as it’s no longer leading the innovation and the competition is closing in quickly and sometimes are ahead of Apple in hardware specs. We’ve observed some serial iPhone users, people that have used several iPhone models, start switching to Android devices, indicating the company is losing some of its loyal users."Sandy Shen, Gartner

source: Bloomberg

UPDATE: In pre-market trading Monday morning, Apple is below $500 at $499.01 bid-$499.82 offered.

103 Comments
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posted on 16 Dec 2012, 23:39 58

1. wendygarett (unregistered)


I'm happy to see this hype gone :)
Sorry Apple, here's a lesson for you

posted on 16 Dec 2012, 23:46 33

4. Nikolas.Oliver (banned) (Posts: 1574; Member since: 01 Jul 2012)


will you still say "Just take my money apple" ?

posted on 16 Dec 2012, 23:56 22

11. Droid_X_Doug (Posts: 5993; Member since: 22 Dec 2010)


Actually, there is a lesson for any financial market - what goes up must come down. It is just a matter of when, not whether. Apple is just the latest example.

posted on 17 Dec 2012, 00:03 4

16. wendygarett (unregistered)


That's so true!!! Boy you studied biz college? Lol

posted on 17 Dec 2012, 00:18 8

20. MeoCao (unregistered)


Steve Jobs was very shrewd to keep an aura around iPhone: he built up excitement with his shows at unveiling, kept people waiting in lines at Apple stores...

Tim Cook can not do Jobs' tricks and the aura is gone, without it people begin to see iPhone's true identity.

posted on 17 Dec 2012, 00:25 6

23. Droid_X_Doug (Posts: 5993; Member since: 22 Dec 2010)


Biz college plus time in industry = lived in so many bubbles that you just know when one is occurring. Apple at $700 was just waaay too high to be sustainable.

posted on 17 Dec 2012, 00:29 4

26. wendygarett (unregistered)


I guess we are same of the kind :)
$700 is too ridiculous for me, that's why I sold it :)

I decided to buy back @ $400 but it needs some time to reach there lol

posted on 17 Dec 2012, 00:29 2

27. -box- (Posts: 3991; Member since: 04 Jan 2012)


Bam! Called it. Apple shareholders: trade it for Samsung, Nokia, Asus, Acer, etc

posted on 17 Dec 2012, 00:34 5

30. Droid_X_Doug (Posts: 5993; Member since: 22 Dec 2010)


I was struck by how hard Apple tried to eliminate the wait-list for iToys. They were doing their utmost to kill the buzz around the releases. No 'one more thing...'. Then playing with the allocation model. And, and, and. When I saw that the lines were smaller for the iP4S than the iP4, I put it off to disappointment over the unmet expectations. Then the news broke about supply and quality problems and it was time to short Apple. I closed out my short position last week.

Apple probably will fall some more, but there is a saying on Wall Street (I am paraphrasing) - you can make money being a bull and you can make money being a bear, but no one makes money being a pig....

posted on 17 Dec 2012, 01:06 15

49. wendygarett (unregistered)


Sure I will, it's my money after all :p

posted on 17 Dec 2012, 02:12 2

60. cheetah2k (Posts: 1713; Member since: 16 Jan 2011)


Apple = Smoke & Mirrors

posted on 17 Dec 2012, 02:37 15

62. MeoCao (unregistered)


No offense Wendy and correct me if I'm wrong, but I guess it's your parents' money.

You are a well informed girl so I think you will think hard before giving money to Apple if it's your hard earned.

posted on 17 Dec 2012, 02:42 7

63. iDroidWin (Posts: 117; Member since: 07 Dec 2012)


I think Tim Cook is far better man than Steve Jobs was. Steve Jobs was a visionary, I admire that fact. He changed the game. But when asked to shift manufacturing back to America. He didn't. Tim Cook did. He is carrying Jobs legacy of patents war. As far I think, he will ditch it soon to invest more money in innovation. He isn't stubborn like Jobs. He shares the stage with everyone at the cost of creating charisma for himself. Tim Cook is a better balanced CEO than Steve Jobs.

posted on 17 Dec 2012, 03:24

72. cncrim (Posts: 885; Member since: 15 Aug 2011)


You know that i feel bad for Tmobile, they spend all kind of money to get iphone next for so many years never have iphone. Now, the Apple device is not cool or not as hot like it use to.

posted on 17 Dec 2012, 03:28

73. cncrim (Posts: 885; Member since: 15 Aug 2011)


+3 tha's so damn rite

posted on 17 Dec 2012, 03:46 1

75. MeoCao (unregistered)


Tim Cook may be a better man, but Jobs was surely a better businessman.

posted on 17 Dec 2012, 06:24 1

81. AamirSIII (banned) (Posts: 187; Member since: 04 Oct 2012)


its just a market fluctuation and apple policy... i know rates are not fixed by the company itself but hey, THIS IS APPLE!!! richest tech company on the planet... they run the market!
its just temporary!

posted on 17 Dec 2012, 07:10

84. QWIKSTRIKE (Posts: 1259; Member since: 09 Mar 2010)


My Elliot wave charts have predicted this since the wave 3 top way back when Apple hit 600.00 the 1st time. Citi Group said it was time to buy Apple a month or 2 ago. I then said never buy at a wave 5 top, and that Citi is pumping and dumping to unsuspecting buyers.

My next prediction is the stock market also has hit a wave 5 top and a C wave down will happen during or after the 1st quarter.

Doug your para phrase is very true!

posted on 17 Dec 2012, 07:23 1

85. galokjai (Posts: 36; Member since: 20 Jul 2011)


the money you made off of white collar crimes and the money you stole from the poor/middle class?

posted on 17 Dec 2012, 08:51

92. QWIKSTRIKE (Posts: 1259; Member since: 09 Mar 2010)


I also say watch it when analyst say buy or bail.... usually you do the opposite!lol

posted on 17 Dec 2012, 14:00 1

96. PhenomFaz (Posts: 1236; Member since: 26 Sep 2012)


it was always game over for Apple since launch of iPhone 5 as the launch itself lacked fizz and energy!
Apple 'geniuses' dancing around like 'moron' monkeys apparently didnt help much to boost sales :)

posted on 17 Dec 2012, 16:42

97. jroc74 (Posts: 6019; Member since: 30 Dec 2010)


Curious what your thoughts are on Google still being over $700. And that steady climb it has done over the past few years vs Apple.

On a side note....sorry I have to keep bringing this up......lol, certain folks wanted to point out that "YEA!! Apple is over $700 in stock price!!" When it was pointed out that Google was over that about a week before Apple....its was "yea but...."

When Apple stock started to fall and hasnt been back over $700 yet....not one peep. Google's has stayed higher than Apple for the most part over these past few months....still not a peep.

posted on 16 Jan 2013, 20:04

103. QWIKSTRIKE (Posts: 1259; Member since: 09 Mar 2010)


http://www.phonearena.com/news/CITI-Now-is-the-time-to-buy-Apple-stock_id37013/comments?post=504309#post_504309

They can't sustain high premium for a stock that has falling demand. Let's see how this ends in the future!

posted on 16 Dec 2012, 23:39 12

2. aquariumdude (Posts: 40; Member since: 11 Jan 2012)


Gotta love this article :)

posted on 17 Dec 2012, 00:00 3

12. tuminatr (Posts: 837; Member since: 23 Feb 2009)


not suprised I have predicting this for a few years, apple because of its business plan will find itself with around 10% market share and they are happy with that and so are there users

I think proplr rip and apple heads because they are soooo nuts over with what there apple products can do, they almost always fait to realise most competitors products do the same thing sometimes even better

posted on 17 Dec 2012, 03:08 2

69. The_Prototype (unregistered)


iPhone 5 just ruined the whole company...

posted on 17 Dec 2012, 07:28 1

86. galokjai (Posts: 36; Member since: 20 Jul 2011)


everyone knows you have to change to keep up with technology. Why do you think Google changed from search engine to cell phones? They are planning to go into mobile, TV, internet, and even car service. Now, that is what I call adapting.

posted on 16 Dec 2012, 23:46 3

3. TechDork (Posts: 308; Member since: 10 May 2010)


The Apple finally spoils.....

posted on 16 Dec 2012, 23:46 3

5. MC1123 (Posts: 1256; Member since: 12 Nov 2012)


i hope people will stop bashing iPhone or any other OS that isnt related to android... i mean people, grow up!! if they like iPhone or other platform let them be..let them enjoy what they want!!!

its their money after all!

and besides, even the poorest human being wants an iPhone (yes its a fact) that includes china! and even android is booming on that huge country, most people still want iPhone but too pricey!

posted on 17 Dec 2012, 00:01 11

13. dsDoan (Posts: 234; Member since: 28 Dec 2011)


Your post started out well, until your heavy bias toward the end. Show me the study you are referring to that shows statistics proving that "most people want an iPhone but can't afford it."

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