Apple in China: Apple Falls, Is China Mobile to Blame?

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Apple Inc (AAPL)Apple in China: As we discussed after the market closed yesterday (see Why Are Apple Shares Sinking?), Apple Inc. (NASDAQ:AAPL) lost over 6% on the day. While the selloff has been attributed to a variety of factors, there are several that stand out of the crowd.

Let’s start by doubling back on our story yesterday, more specifically the statement made by Piper Jaffray’s Gene Munster regarding questionable data in a recent DigiTimes article:

“A DigiTimes article from today suggests that iPhone 5 is selling well based on comments from wireless chipset providers and seems to suggest upside to the Street’s 43-45 million estimate for December […] In the same article, DigiTimes is suggesting a 20% q/q decline in Apple’s demand for parts and components in March. We believe this 20% decline is to be expected coming off of a launch quarter and do not believe it is an indication of how units might trend in March.”

While there is no denying the importance of Munster’s note to investors, a story from earlier today brings new light to the recent decline.

China Mobile Ltd. (NYSE:CHL) Chief Executive Officer Li Yue has publicly stated that he has no plans to add Apple Inc. (NASDAQ:AAPL)’s iPhone to the largest wireless network in the world — more than 703 million subscribers — unless the deal is beneficial for his company.

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