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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.

  • Options

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 17 Dec 2012, 01:06 15

49. wendygarett (unregistered)

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

posted on 17 Dec 2012, 02:37 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, 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, 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 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, 00:25 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, 16:42

97. jroc74 (Posts: 6005; 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 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, 00:34 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, 02:12 2

60. cheetah2k (Posts: 1578; Member since: 16 Jan 2011)

Apple = Smoke & Mirrors

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, 03:28

73. cncrim (Posts: 826; 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, 03:24

72. cncrim (Posts: 826; 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, 07:10

84. QWIKSTRIKE (Posts: 1130; 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, 08:51

92. QWIKSTRIKE (Posts: 1130; 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, 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, 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 16 Jan 2013, 20:04

103. QWIKSTRIKE (Posts: 1130; Member since: 09 Mar 2010)


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: 773; 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: 292; Member since: 10 May 2010)

The Apple finally spoils.....

posted on 16 Dec 2012, 23:46 3

5. MC1123 (Posts: 1255; 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: 229; 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."

posted on 17 Dec 2012, 00:42

39. MC1123 (Posts: 1255; Member since: 12 Nov 2012)

it was not bias..i was just saying what i see from my observation in real life not here in PA where most users are android fans!

a lot of people wants an iPhone...all ages, all statuses that like the iPhone!

posted on 17 Dec 2012, 01:01 2

48. dsDoan (Posts: 229; Member since: 28 Dec 2011)

"A lot of people" is the term you should have used. You said "most" want an iPhone. You have nothing to base the idea that most people want an iPhone on.

Both platforms have a large user base, let's just leave it at that, and not assume what we think they want.

posted on 17 Dec 2012, 01:25 8

51. tedkord (Posts: 11700; Member since: 17 Jun 2009)

Not everyone wants an iPhone, and its not due to poverty. I could afford an iPhone for each day of the week if i wanted one, but you won't find one in my pocket.

Much of what's been posted is true - the RDF died with Steve Jobs, and people aren't being fooled into believing that the 5 is anything more than the 4s stretched (with crappy maps). They're also seeing clearly just how far android has blasted past iOS in features and function, while equaling it in smoothness and fluidity.

posted on 17 Dec 2012, 01:26 3

52. joey_sfb (Posts: 5747; Member since: 29 Mar 2012)

So you think apple would care about people that unable to feed their high PROFIT margin. They even taser those that refuse to leave their store after been told so.

posted on 17 Dec 2012, 00:01 5

14. wendygarett (unregistered)

Just let them speak, I'm get used of it anyway...
Besides, this might be a wake up calls for Apple for not trying to fool the ifans...

I introduced a lot of android device to my fellow iFriends, they say it's awesome... And they skipped the iPhone 5 is because they had too much of ios6 device...

posted on 17 Dec 2012, 00:44 2

42. MC1123 (Posts: 1255; Member since: 12 Nov 2012)

yeah... but its just annoying that they hate apple coz iPhones sells well even it is overprice!

the only thing hateful on iPhone is its price!! but over all its a good phone!

posted on 17 Dec 2012, 01:33 4

54. joey_sfb (Posts: 5747; Member since: 29 Mar 2012)

Disagree. Good phone compare to what. I have used iOS in 2008 - 2011. From then, i don't think it could even be consider a smart phone as its only an iPod that can make phone call. iPhone feature can only be compare to modern days feature phone, not even a low end android devices

posted on 17 Dec 2012, 07:08 1

83. TechDork (Posts: 292; Member since: 10 May 2010)

I'd have to agree Joey. I mean, if you take away the app store (which is really what makes the iPhone), what do you have? Exactly. I'm not bashing the iPhone, but when it comes to iOS, they really need to amp it up, a lot. As for the screen, widen it out about an inch. Give us some extra room to type on.

posted on 17 Dec 2012, 07:30 1

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

if the phone was free, I would still even think about it. What features on a apple phone an android can't? nothing. What features on a android phone an apple can't? everything.

posted on 21 Dec 2012, 07:57

100. TritonForceX (Posts: 60; Member since: 27 Sep 2012)

As I've posted before, the hate for Apple stems from its, and its fanbase's arrogance. For years, it was what everything was compared to, and was used to show an up-and-coming system's flaws, e.g. Android. I kept reading articles like, "New Android phone comes out, but the graphics, beauty, ease of use, etc., etc., doesn't compare to that of the expertly crafted, almighty iPhone." And Apple fans just adopted the crap that was just being shoveled out without blinking. Now that the tables have turned, and they're not top dog, we get iFans basically saying, "Look, shut up okay! Why can't we just like what we like, 'n stuff! Stop hating on Apple!" I'm just enjoying seeing the playing field level out with no unfair prejudices, and seeing Apple, who thought, and still thinks, it is the only company that deserves to make cell phones, start to fall from Super-human Tech Company, to eh, so-so tech company.

posted on 17 Dec 2012, 00:06 11

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

I couldn't resist replying to this one. I am trying to stay out of Android vs iOS comments. Poorest of Poor wants iPhone is a FACT, is not a FACT. I am buying Note 2 and Nexus 10. I have iPad 3 but I don't even touch it. My brother uses it. I can buy 4S for that price if not 5 (I didn't care to know what it costs). iPhone is available for FREE in US and subsidized in other countries. Some people genuinely love Android for what it can do.

I too respect the fact that people should be allowed to love what they like. But for many driod fanboys, its not about money. Its about consumers getting harmed/Marketing strategy/ Legal Issues/ Lack of innovation.

posted on 17 Dec 2012, 00:32 7

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

I do not - nor ever did - want the abomination that is the iphone.

Your argument is invalid.

posted on 17 Dec 2012, 00:39

36. MC1123 (Posts: 1255; Member since: 12 Nov 2012)

most people..

i never said all people!

posted on 17 Dec 2012, 00:44

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

even the poorest human being wants an iPhone (yes its a fact) , read again, FACT

posted on 17 Dec 2012, 00:48

45. MC1123 (Posts: 1255; Member since: 12 Nov 2012)

yeah..but this is not really game over for apple coz a lot of people desires to have an iDevice!

posted on 17 Dec 2012, 01:45 1

57. joey_sfb (Posts: 5747; Member since: 29 Mar 2012)

I think all apple fans described treatment should be a taser twice in the morning and twice in the evening. That will wake up their idea that every one is in awe and worship their dumb apple devices. LOL!

posted on 17 Dec 2012, 02:34 2

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

When did I say game over. Why do you keep jumping from one argument to another. You said, you said "most people". I quoted you. And instead of accepting your mistake, you are explaining me its not game over?? Dude, some logic please. It will take atleast two years for the brainwash done by apple to washout. Only thing good about Apple product left is good integrated ecosystem. People don't know but google actually has a better ecosystem. Google Plus for instant upload, Google Drive for documents. GMail for mails and contacts. Google Calender for tasks. All combined gives more storage than iCloud, which people keep praising. Its a far more developed but, less integrated in Android. The moment Android gets it right, which isn't really hard to do imo, iOS has nothing over android other than smoothness.

posted on 17 Dec 2012, 00:36 12

31. VZWuser76 (Posts: 4210; Member since: 04 Mar 2010)

I'm on my fifth smartphone currently. Two of which were out of contract. After dealing with Apple previously, I can honestly say that I have no desire to own an iphone.

Basically saying that the only reason people don't like the iphone is that they can't afford it, sorry but that's one of the first things I heard from the apple fans. Everyone complains lately about how android fans rule the roost around here. When I started coming on PhoneArena, it was predominantly Apple fans. They were just as bad as the android fans are today, if not worse. Their big thing was that the only reason anyone didn't like apple was that they were jealous because they couldn't afford it. It was elitist BS at it's finest. But to say that EVERYONE wants an iphone, but only go with something else because they can't afford it, and follow it up saying it's a FACT? WOW.

You started out sounding like an intelligent guy, but then ended up showing everyone you're no better than the people you were venting at. Take your own advice from your first paragraph, and try to wrap your head around the fact that not everyone is in awe of the iphone. I know it's a crazy concept, but it actually is a fact.

posted on 17 Dec 2012, 01:28

53. infinitemethod (Posts: 149; Member since: 04 Sep 2012)

Stop drinking the koolaid, isheeeepp.

posted on 17 Dec 2012, 04:07

77. tonygoz (Posts: 11; Member since: 29 Dec 2011)

@dsDoan.. u are on point Sir, i thank u
@MC1123, based on ur definately selective ignorance of the latr part of ur post, id assume u are in the US, right?
if i may say so... i believe u guys o china alot of money...ALOTTTT, i mean for a poor country that is
where is the proof, if any...... THAT most people want an iPhone but can't afford it."..... PROOF, pls

posted on 17 Dec 2012, 10:45

94. mahmoodh (Posts: 17; Member since: 10 Nov 2012)

trust me, i never liked iphone since the beginning. i agree that it was revolutionary with its iOS bt the harware was dissapointing when compared to nokia alternatives.

iphone didnt have video recording, secondary camera and had only a 2mp camera( really?, nokia n70 had that when it came out in 2005), didnt have radio or gps and at tht PRICE!! tht was dissapointing and those were not specs i would sacrifice for the price they charged.

since then i never evn felt owning an iphone. i wont say iOS is bad bt it is not as powerful as android and now that android has removed the lag thr is absolutely no need to get an iphone!

posted on 17 Dec 2012, 10:54

95. gwuhua1984 (Posts: 1237; Member since: 06 Mar 2012)

"even the poorest human being wants an iPhone (yes its a fact) that includes china!"

That's not necessarily true... have you seen the market shares? Europe sells each new devices at $600-$700, there's no such thing as subsidy... Did you think about why the iPhone market share is so much lower? Now, compared to USA, iPhone subsidy is available, iPhone is being sold at $200 with contract in top 3 major carriers... yet market share is still lower?
If like you said, poorest human being want iPhone, then they could of gotten one for very cheap in the US (well, they'll be paying the rest of that over the life of their contract, but getting any phone will require them to do so). Don't use the cheap Android phones as an argument... Take a look at the SGS3 in the United States, it's the number one selling phone of all times. You can't tell me that only rich people bought the SGS3.

It's either you're not seeing the whole picture, or your observation is really bad...

posted on 22 Dec 2012, 12:46

102. Dave_Granger (Posts: 9; Member since: 16 Nov 2012)

No such thing as subsidized phones in Europe? You might want to check your facts there.

posted on 16 Dec 2012, 23:50 2

6. MC1123 (Posts: 1255; Member since: 12 Nov 2012)

i wish apple will really make a major modification on iOS and on its product!!! a real homescreen and real widgets! that will be awesome!!!

i wish they wont be like their macs/macbook/macbook air! that only sells a few of them! but yeah, a good device...

coz i want apple to be relevant to make the competition healthy!!! and so is WP8 and even BB10!!!

if android is the only choice, i better stick on my old phones!

posted on 17 Dec 2012, 00:02 7

15. Kal-el (Posts: 93; Member since: 14 Dec 2012)

Apple has virtually same IOS for YEARSSS.........
major modifications?ONly way that will happen...wait for google or windows to innovate ....theyll take that idea....then patent it..................

posted on 17 Dec 2012, 00:11 1

18. amiaq (Posts: 509; Member since: 30 Jun 2012)

I know you're a big fan of Apple and all, can you put in your WISH LIST something which are not copy of android features. Ask Apple to innovate something not from other platforms.

posted on 17 Dec 2012, 00:31 3

28. wendygarett (unregistered)

Just because he says something good, you accused him an ifans? Did you see his avatar?

I thought fandroids are smart... Sigh

posted on 17 Dec 2012, 00:37 1

33. MC1123 (Posts: 1255; Member since: 12 Nov 2012)

wendy... i so get you! :)

posted on 17 Dec 2012, 02:59

67. joey_sfb (Posts: 5747; Member since: 29 Mar 2012)

Good like android phone is the only choice in the coming years. So any old phone you have in mind. You could keep using your iPhone till it leak battery juice.... See how cool is that! Every one will really be in awe with your iPhone then. Apple fans are really a bunch of losers. For me, i will use what is affordable and good. Be it webOS or android or god forsaken wp9. As long as its the best!

posted on 17 Dec 2012, 07:34

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

i thought people who like apple products are fake and deceiving anyways? what is your point? kind of like your avatar.

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