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 news from China sent Apple's shares reeling

The news from China sent Apple's shares reeling

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" 640 x 1136 pixels
  • Camera 8 MP / 1.2 MP front
  • Processor Apple A6, Dual-core, 1300 MHz
  • Storage 64 GB
  • Battery 1440 mAh(8h 3G talk time)

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74 Comments

1. lolioslol

Posts: 182; Member since: Dec 10, 2012

LOL. Gee, they get to make the thing slaving in a factory for like 13 cents a day and you're telling me they AREN'T lining up in droves to buy it? Mind=BLOWN

7. wp8forever unregistered

They will be back to be , what the used to 7 years ago , NOTHING I WISH I DROPS -50 DOLLARS hate apple with a passion ,just taking money away from stupid ppl , selling them the same crap over and over gain .

13. noim1

Posts: 297; Member since: May 15, 2012

Guess what !!!! the next iPhone 5S will have NFC !!!! OMG !!! Revolutionary !!!! Extraordinary !! Now ppl line up in front of the the Fruit shop and give ur Money & take ur latest iPhone 5S (which has the same design , same screen , same specs ,but look now it has NFC )...

53. rusticguy

Posts: 2828; Member since: Aug 11, 2012

And in 7 colors if the colors that they launch could be patented so that they could also escape the "it's so obvious" clause. Else they stay black and white till others have co nclusively established which colors sell.

62. Nathan_ingx

Posts: 4766; Member since: Mar 07, 2012

Come to think of it, the Chinese are more intelligent in speaking their mind about the phone they want. Unlike 'most' Americans (pardon moi) that goes gaga over iPhone. And i thought Apple was checking the network compatibility a few weeks back??

56. PhenomFaz

Posts: 1236; Member since: Sep 26, 2012

I am grabbin popcorn...this is gettin good :)

42. jmoita2

Posts: 930; Member since: Dec 23, 2011

I know, about time this fad fades out. How many times can you rename then "launch" the same exact product??? Drop, Apple, drop!!!

61. JeffdaBeat unregistered

I'm confused... Apple hasn't had lines here in the US because they started doing a better online system. People balked saying that Apple was losing its touch. Come to find out Apple did a better job with their online reservations and had still made record sales. So then you have China...where people were pissed because Apple ran out of iPhones. So Apple improves reservation system, not only to stop everyone from being so physically angry at the lack of product, but to stop scalpers...yet people still balk saying Apple isn't selling as well. I'm interested in seeing the discussion when Apple actually releases their sales numbers. Here's a story that outlines it a bit... http://appleinsider.com/articles/12/12/14/apples-china-reservation-system-again-cuts-down-on-lines-scalpers-for-iphone-5

70. quakan

Posts: 1418; Member since: Mar 02, 2011

You're one of the most level headed commenters on this site in my opinion. Usually when I see your name I always read your comments in full entirety just because you always have something interesting to share and you arguments/replies to people are always well written. +1

75. jroc74

Posts: 6023; Member since: Dec 30, 2010

Just like when the iPhone first came to Verizon, smaller lines meant a better online and pre order system than AT&T.

19. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

Where is Mxy and the rest of the Apple defenders? Bad news for Android and they are crowing about it.

22. noim1

Posts: 297; Member since: May 15, 2012

BETTER CALL UR BUDDIES quick !!!....cause we r growing in multiples of x100 .....LOL... well the fact is that u have got nothing to Defend ...and deep inside you know that Apple is ripping u off but not showing it & boasting abt the high price device...well hear frm us high price does not mean it's the BEST !!!

33. QWIKSTRIKE

Posts: 1457; Member since: Mar 09, 2010

All I have to say is my Elliot wave post from PA's past articles stated that this would happen, and I also posted about wave 5 tops. Anyway as I predicted Apple would try to retrace back to the highs and fail. Failing here sends it to $485.00 and possibly lower, then watch the fear and panic sell take over. Apple is a great company that has possibly reached potential market saturation with no new worth while product to push it forward short of analyst pumping it as they dump it to unsuspecting buyers! I can't wait to see what unfolds after the Christmas Holiday sales. Bad news will send the stock lower. Remember I also predicted a wave 5 top for the regular stock market and predict as revwersal after the 1st quarter reports for 2013!

71. quakan

Posts: 1418; Member since: Mar 02, 2011

What's funny is that I remember that. lol

26. maxican16

Posts: 364; Member since: Sep 29, 2011

Haha, great friggin' post. Great point.

31. PAPINYC

Posts: 2315; Member since: Jul 30, 2011

The Chinese are not STUPID, they know a good counterfeit when they see one. Ni Haoooooooo.......

44. XPERIA-KNIGHT unregistered

are you serious?? thats all the more reason for people to NOT want to line up and buy the device! Someone working at a burger king for years upon years usually doesnt order there after they are off work.............because they are too familliar and SICK of the place! ps i hope you were being sarcastic

47. parkwaydr

Posts: 572; Member since: Sep 07, 2011

True, I worked at Wendy's in high school for like two and a half years. Still can't eat there to this day.

57. rcwfox2002

Posts: 41; Member since: Dec 20, 2011

I worked for Verizon and after I left I still have Verizon service. I didn't buy the Nexus 4 because it did not meet my expectation to upgrade from Galaxy Nexus. People in Asian countries understand technology and gadgets and the Iphone 5 is nothing special or worthy of an upgrade. Instead of Apple innovating they spend their R&D money on advertising. Every movie, sitcom, commercial has an Iphone and Apple is footing the bill. Americans want to be popular, appear smart and rich, Apple gives them that illusion.

72. quakan

Posts: 1418; Member since: Mar 02, 2011

Just to let you know 1,344,130,000 people live in China and they all don't work for Foxconn.

2. toiletcleaner

Posts: 224; Member since: Oct 10, 2012

Keep going down

17. MeoCao unregistered

like poops down the toilet LOL

18. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

Law of gravity = what goes up must come down. Didn't anyone see the article posted a few days ago about how Android phones were selling like hot cakes on a cold winter day in China? Cool only sells so many. Day-in day-out users seem to be choosing Android.

3. ray77

Posts: 126; Member since: Nov 17, 2012

wait for next year then lol

21. dc0321

Posts: 24; Member since: Nov 21, 2012

next year gonna be the same phone wit the S

4. MeoCao unregistered

Or may be the market reacts to the maps fiasco? Google proved that they are now the tech king not Apple.

5. noim1

Posts: 297; Member since: May 15, 2012

No 1 cares abt Apple any more !!! for starters the Chinese r becoming SMART !!

11. arsenaljimenez

Posts: 196; Member since: May 03, 2012

from reading this, they are the only smart ones

48. soshi

Posts: 154; Member since: Mar 08, 2012

true, the other countries still following the sheep from the west, including my country. no wonder chinese always ahead, they know how to use their money

63. synot

Posts: 277; Member since: Sep 14, 2012

So true americans should learn from the chinese, big sale small profit instead of no sale no profit .owning an iphone doesnt say anything anymore ,its just another regular phone nowadays ,nothing special

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