Apple records strong China sales for iPhone 5

Apple (AAPL.NASDAQ) recorded sales of more than 2 million iPhone 5s in the three days since the smartphone hit the market Friday, the best smartphone launch ever in China for the world’s most valuable technology company, Reuters reported. Even so, Apple shares have fallen nearly 13% since the beginning of December and continued to fall Monday due to downbeat analyst forecasts. Citi Research downgraded Apple’s stock from “buy” to “neutral” and cut its price target from US$675 to US$575, saying hype around the new iPhone is fading and competition in smartphones is becoming more intense. Jefferies analyst Peter Misek said earlier that Apple had started cutting orders to iPhone suppliers to balance excess inventory. Analysts said the company’s longer-term outlook in China depends on whether it can successfully partner with China Mobile (CHL.NYSE, 0941.HKG), the country’s largest telecom carrier.