The past three years have seen Apple’s share price (AAPL) in an unstoppable rally; but a recent flurry of skeptical media reports have left this share price down nearly 30% from its all-time high of $700.
Such is the skepticism of Apple, that even a launch of their iPhone 5 in the World’s largest market did little to stop the fall. On Friday, Apple finished the day trading at a 10-month low by falling 3.9% to $509.79. The company’s stock was downgraded and 6 month predictions fell by nearly $100…
But great news came from Apple HQ as this weekend’s launch of the iPhone 5 saw over 2,000,000 sales – the largest opening weekend for a mobile phone ever seen in China.
“Customer response to iPhone 5 in China has been incredible, setting a new record with the best first weekend sales ever in China,”
Tim Cook, Apple CEO
This news seems to clash with some reports of empty stores and despondent customers; and there is no doubt that many investors will remain skeptical given the relatively few sales in such a large market.
Such a short term gain may seem like a big win for shareholders; but the real value in the China launch will be in the long term. Apple currently does not have partnerships with some of China’s main telecoms carriers (including China Mobile), and so the outlook may still remain uncertain.
Image Credit: http://uk.finance.yahoo.com/q?s=AAPL