Apple shares plunge on poor Chinese Apple iPhone 5 reception

Apple shares plunge on poor Chinese Apple iPhone 5 reception
Shares of Apple moved closer to the important $500 level on Friday, as the shares dropped over 3% in reaction to a chilly reception given in China to the launch there of the Apple iPhone 5. Technical Analysts, who pour over stock charts to determine a stock's future movement, have been bearish on the stock since it penetrated both the 50 and 200 day moving averages. Now, these guys are pointing to the $500 level where Apple snapped back from its last drop, and suggest that a close under $500 could set off a powerful wave of new selling.

What has investors so worried today is the lack of long lines waiting outside Apple's seven retail stores in Beijing, Shanghai and Shenzhen. This is a sharp contrast to the long lines and fights that broke out in January when Apple launched the Apple iPhone 4S in the country. A delay in opening one of the Apple Stores led those waiting in line to turn violent, tossing eggs at police and breaking windows. Apple halted sales of the Apple iPhone 4S in its stores in response.

The failure of the Apple iPhone 5 to capture the attention of the Chinese apparently has to do with the design of the device. Even increasing the size of the screen to 4 inches from the previous models' 3.5 inch display was not enough to bring in buyers for the phone. Wang Yanhui, secretary general of the China Mobile Phone Alliance said, "The iPhone 5 is undeniably a good product. However, among the high-end smartphone category, it has a smaller screen and few bright spots, but has a high price." A woman inside an Apple Store in Beijing said "The iPhone 5 boosts no big innovations and is not very different from the iPhone 4s. I might wait for the next model."

The World's largest carrier, China Mobile, is unable to connect to the Apple iPhone because of its' proprietary 3G network. The carrier did recently make a deal with Nokia to offer customers the Windows Phone 8 powered Nokia Lumia 920T which has a 4.5 inch display.

source: WMPoweruser

Related phones

iPhone 5
  • Display 4.0 inches
    1136 x 640 pixels
  • Camera 8 MP (Single camera)
    1.2 MP front
  • Hardware Apple A6, 1GB RAM
  • Storage 64GB, not expandable
  • Battery 1440 mAh
  • OS iOS 10.x

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74 Comments

73. OSFantasma

Posts: 119; Member since: Sep 27, 2011

around 30% plung from highest point wow that is crazy..

69. Levon

Posts: 35; Member since: Aug 09, 2012

they could do 5 in this way s18.postimage.org/tjgq81b9l/iphone5_x.jpg

60. voxmarc

Posts: 339; Member since: Aug 22, 2012

my oh my oh my.....here in shenzhen hardly any buzz,saw the news the about the launch of ip5 on apple store in beijing and its empty and funny how employees are at the door waiting for 1 guy....gone are the days...chinese are known to use money wisely,they realised that paying that much for nothing is FengKuang De.

67. networkdood

Posts: 6330; Member since: Mar 31, 2010

they are probably too expensive...

68. voxmarc

Posts: 339; Member since: Aug 22, 2012

that is one reason other is a lot of cheap android device with better specs...and most of my chinese friends are incline to the Galaxy Note 2 here with two sim cards...which is quite awesome...a dual sim smartphone.

59. yeminswe

Posts: 8; Member since: Dec 10, 2012

apple .. you proud if yourself too much .. you neglect the growth of android and its innovation and didnt make NEW .. that's your point of failure... if you wanna fight back, be sure to make amazing innovations that customers used to like.

58. omarr

Posts: 149; Member since: Sep 15, 2012

''The iPhone 5 boosts no big innovations and is not very different from the iPhone 4s. I might wait for the next model." And from where the iphone 4s was very different from iphone 4 ? stupid china

66. networkdood

Posts: 6330; Member since: Mar 31, 2010

The main difference is Siri - bigger change from 4 to 4s, then 4s to 5 - for me, if I was an iphone user, the 5 would be the way to go - more icons on screen - taller phone - LTE 4G connection, better camera - nothing innovative or different than on my android, but for an iphone user the 5 is king.

74. omarr

Posts: 149; Member since: Sep 15, 2012

I am an apple fan but i must say , APPLE LOST IT INNOVATION

54. rusticguy

Posts: 2828; Member since: Aug 11, 2012

So a 40% drop in market cap from +700 level? How much does that work out in absolute numbers? Maybe 100 times what they want from Samsung for copying their black rectangle without roun der corners right? It just takes a "small prick" to puncture a "bloated ego" :D

52. networkdood

Posts: 6330; Member since: Mar 31, 2010

You can blame APPLE for this - lack of innovation - patent trolling and suing. You reap what you sow, apple...enjoy!!

50. networkdood

Posts: 6330; Member since: Mar 31, 2010

Chinese people are smart...ancient chinese secret, no doubt...

49. uliuli80

Posts: 2; Member since: Oct 28, 2012

The reason why they didn't react as strongly is because they actually use their brain. The Chinese woman spoke of the truth when she said it wasn't revolutionary as Apple states and that the screen is mediocre at best.

45. roscuthiii

Posts: 2383; Member since: Jul 18, 2010

I guess iPhone popularity was a fad like that of New Kids on The Block: "The right stuff The right stuff First time was a great time Second time was a blast Third time I fell in love Now I hope it lasts" I wonder where the lyrics go for the 4th time and beyond...

46. roscuthiii

Posts: 2383; Member since: Jul 18, 2010

Don't judge me for knowin' some NKOTB. :-|

43. someones4

Posts: 628; Member since: Sep 16, 2012

China has plenty of good phones like the oppo find 5 and zte nubia. Why settle for less?

40. amiaq

Posts: 509; Member since: Jun 30, 2012

Looking for Apple iPhone killer device? Introducing..... iPhone 5!

36. Sniggly

Posts: 7305; Member since: Dec 05, 2009

It's because the Chinese had all their resellers in Best Buy buying all the iPhone 5s they wanted back when it launched here in the US. It was so bad that we had to issue a company wide policy to not sell more than one iPhone 5 per customer unless it was being activated.

37. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

Nothing like market saturation.... Cool will sell only so many. And that point may have been reached in China.

34. McLTE

Posts: 922; Member since: Oct 18, 2011

is a 3% stock drop really a plunge PA? My god you guys take news stories and completely BLOW the headline out of proportion.. Today we have 3% stock plunging.. and having sex more than once a week makes you an addict. As for this article.. things don't seem to bode well for Apple. At some point here in the US people will also wake up and the magical marketing enema that apple has up so many people's a$$e$ will be removed and things will continue to slide. can Apple afford another 4-4s micro update? They need some significant changes.. NOW.

35. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

"...and having sex more than once a week makes you an addict." What is the matter with having sex more than once a week? By that metric, there must be a whole bunch of sex addicts.

32. nyamo

Posts: 274; Member since: Mar 19, 2011

I'm amazed with China where brand names mean everything apple failed. That or pricing is way to high for most people to afford

30. 12Danny123

Posts: 87; Member since: Aug 18, 2012

Go WP and Android. Apple needs to go down!

29. freebee269

Posts: 543; Member since: Aug 10, 2012

lumia 920T went on sale this week along with the iphone 5 and will outsell the iphone 5. just on the basic fact that the lumia 920T works on more carriers than iphone 5 (meaning you can keep your number) and has better specs.

28. molanjames

Posts: 80; Member since: Oct 11, 2012

Apple thinks Chinese people are stupid.. Trying to sell the same darn thing for the past five years is a direct insult

27. manlapazj

Posts: 3; Member since: Dec 06, 2012

i agree. no innovation. no bright spots. the new "feel" or "build" of the iphone seems plasticky for me.. just saying.

25. maxican16

Posts: 364; Member since: Sep 29, 2011

So this is what happens when you don't have a bunch of lemmings blindly loyal to you. People actually use COMMON SENSE and assess the phone for it's FEATURES and VALUE...... both of which the iphone lack.

24. Martine

Posts: 102; Member since: Oct 20, 2011

Why do tech sites like PhoneArena always post multiple news per week about Apple Stock?

38. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

It is a good way to stimulate the eyeball count metric?

23. devildlm1

Posts: 71; Member since: Sep 12, 2012

Apple simply just can't get away with the high price anymore. Unsubsidized, there are 10+ alternatives that do more and cost less. When the iPhone 4s came out and people were going crazy over it, Google was just getting out of its tarnished Android reputation so it was 50/50 and many saw the iPhone price as justified. Now that Google and the manufacturers stepped their game up, going with Android or even Windows is a no brainer.

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