Asian vendors of Apple Inc. (NASDAQ:AAPL) plummeted, as its ratings was downgraded by an analyst Glen Yeung. The short off in orders of iPhone 5 model raised concerns among the Asian vendors about low demand for company’s latest model.
An analyst Jeff Pu at Fubon Financial Holding Co, said that they are supposed to be at peak of product cycle but they are getting cautious on Apple supply chain, and he thinks that most important thing is iPhone 5 game is over, after the bad news of weaker than expected demand in US, even in China the launch just go so so.
Glen Yeung, an analyst at Citigroup analyst downgraded Apple to neutral from buy, and he reduced price targets on AAPL to $575 from $675. The question son iPhone 5 capabilities would be raised by Yeung that the cut in orders of short term supply chain is something dangerous for its Asian suppliers.
Apple Inc. (NASDAQ:AAPL)’s Asian suppliers such as, the iPhone assembler, Hon Hai Precision Industry Co., stumbled more than its seven months in Taipei trading hours. The Cupertino, California based Apple, plunged to the lowest level since Feb. 17 in Friday trading hours in New York and it market capitalization reached $480 billion, its crumbling situation for the world’s most-valuable company.
The company is facing pressure of selling in the near term, which in turns makes near term earnings downside in its future prospect of weak iPhone 5 shipments, according to an analyst Kevin Chang.
The managing director of the China Market Research Group Shaun Rein said that no doubt Apple is still a very popular product, but it’s not as breaking records like it would suppose to do two years back, and it is continuously losing its charm. It’s not the same product with prestige status symbol it once was, and it’s not the dominating market leader any more for high-end smart phones.
In China launch of iPhone 5, company posted that record sales in its first weekend of availability in the world’s largest mobile- phone market by users. The company said that it sold more than 2 million copies of iPhone after launch in the three days following its Dec. 14 introduction in the country.
Apple Inc. (NASDAQ:AAPL) shares fell -3.76% to closed at $509.79 in last session on Friday.