Apple blow despite China launch

The highly anticipated release of the iPhone 5 in China, Apple's second-biggest market, failed to stop the recent share slide of the world's most valuable technology company yesterday, and analysts added that Apple's longer-term China hopes may hinge on a partnership with the country's top telecoms carrier. Apple's shares, however - once among the most desirable of portfolio holdings - have headed steadily lower since September on growing uncertainty about the company's ability to fend off unprecedented competition. Unlike the crowds that the iPhone 5 debut drew in many cities around the world since September, just one person was waiting at the Apple store in Shanghai's financial district when its doors opened at 9am yesterday. "Some of our Chinese sources do not expect the iPhone 5 to do as well as the iPhone 4S," UBS analyst Steven Milunovich wrote in a note to clients. China is Apple's fastest-growing market, bringing in about 15 percent of total revenue. "In absolute terms, this (iPhone 5) launch will certainly result in strong sales for Apple in China. However, in relative terms, I don't believe it will move the needle enough in market share," said Shiv Putcha, a Mumbai-based analyst at Ovum, a global technology consultant. In addition, analysts cut their forecasts for shipments of the iPhone. Jefferies analyst Peter Misek trimmed his iPhone shipment estimates for the January-March quarter, saying that the technology company had started cutting orders to suppliers to balance excess inventory.