New record: Apple iPhone 5 starts strong in China

NEW YORK: Apple Inc. 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 this week 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 US and 30 other countries in September, selling more than 5 million in its first three days on the market.
“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 Ltd, the country’s top telecoms carrier.
Wal-Mart Stores Inc. said earlier that it began selling the flagship iPhone 5 smartphone at a big discount in thousands of its stores.
Wal-Mart said it is selling the 16 GB Apple iPhone 5 for $ 127, versus an original price of $ 189.97. The price is valid with a two-year contract from wireless carriers Verizon, Sprint and AT&T, the retailer added.
Wal-Mart said it is also selling the 16 GB iPhone 4S and the 16 GB iPad with Retina display and WiFi at discounts.
The offers will be available for 30 days in about 3,000 of Wal-Mart’s stores, which were not identified. They are not available online, according to the retailer.
Apple has focused on high-priced, premium gadgets for many years and has strictly enforced its prices with retailers and other distributors. However, a Wal-Mart spokeswoman said on Friday that the discounts were arranged with Apple.
“We worked together with them on this,” the spokeswoman, Sarah Spencer, said. “They are a great partner.”
Wal-Mart is pricing the iPad starting at $ 399, down from $ 499. Beginning Dec. 17 the retailer said it will throw in a $ 30 iTunes card.
Wal-Mart is selling the 16 GB iPhone 4S for $ 47, versus an original price of $ 89.97, it said.
Apple did not respond to a request for comment.
Wal-Mart’s cooperation with Apple is a contrast to its relationship with Amazon.com Inc, the world’s largest Internet retailer.
In September, Wal-Mart said it would stop selling Amazon’s Kindle eReaders and tablets, placing a bet that consumers would be more interested in Apple’s gadgets. This spring, Target Corp. stopped selling Kindle devices.