Apple's iPhone 5 gets strong China sales, analysts downgrade stock

Apple's (NASDAQ:AAPL) iPhone 5 sales in China have set a new record with the best first weekend sales ever in that country. 

The technology company sold more than 2 million of its new iPhone 5s during the three days after its launch Friday, marking China's best-selling iPhone rollout ever.

"Customer response to iPhone 5 in China has been incredible, setting a new record with the best first weekend sales ever in China,"Apple CEO Tim Cook said.

But the highly anticipated release in China, Apple's second-biggest market, has not eased worries about stiffer competition in smartphones that are driving a slide in the share price of the world's most valuable technology company.

Shares were down 3 per cent premarket Monday as Citigroup analysts downgraded the shares to "Neutral" from "Buy" and cut their target price to $575 from $675, questioning the strength of iPhone 5.

UBS meanwhile slashed it target price for Apple stock from $780 to $700 on the basis of lower expectations in China.

Apple's latest iPhone made its global debut with a launch in the United States and 30 other countries in September, selling more than 5 million in its first three days on the market.

Analysts say Apple's longer-term outlook in the China market, however, may hinge on expanding its partners in that country to include China Mobile, the country's top telecoms carrier. Reported by Proactive Investors 8 hours ago.