Apple's iPhone 5 Starts Strong in China but Shares Pressured
Apple said it sold more than 2 million of its new iPhone 5 in China during the three days after its launch there on Friday, marking China's best-selling iPhone rollout ever.
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.
Apple shares fell 3.8 percent on Friday to $509.79 after the iPhone 5's China debut, while Citi Research downgraded Apple's stock late on Sunday to "neutral" from "buy" and lowered Apple's price target to $575 from $675, citing diminishing hype around the iPhone 5 and improving competition in smartphones.
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.
(Read More: Apple's iPhone 5 Takes on Cheaper Rivals 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," Apple Chief Executive Tim Cook said in a statement.
This is the first time Apple has announced China sales numbers for the iPhone.
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.