Citigroup analyst ‘concerned’ about China’s state-run media’s anti-Apple propaganda campaign

“Shares of Apple are down $7.26, or 1.6%, at $435.40, following a note to clients this morning by Citigroup’s Glen Yeung in which he reiterates a Neutral rating on the stock and a $480 price target, after reflecting upon reports last week of push-back in China against the company by media and regulators,” Tiernan Ray reports for Barron’s.

“Writes Yeung, ‘a series of anti-Apple propaganda that began on World Consumer Rights Day on 3/15’ give him concern ‘about the impact of this propaganda on Apple’s China market share,'” Tiernan Ray reports for Barron’s. Yeung notes Apple has posted a note on its site to Chinese consumers to ‘explain company policies,’ but that it sparked another negative response from State media outlet People’s Daily.”

Read more in the full article here.

Related articles:
China’s state-run media’s persecution of Apple likely to end with China Mobile iPhone deal – April 1, 2013
China state-owned film studio sues Apple for ‘selling unauthorized movies’ – March 29, 2013
Chinese regulator calls for tighter supervision of Apple – March 28, 2013
Popularity buffers Apple Inc. from state-run media attacks – March 28, 2013
Apple and China seem made for each other, so why is China attacking Apple? – March 28, 2013
Manufactured Apple ire shows up for real against China’s state-owned monopolies – March 27, 2013
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What’s really behind China’s attacks on Apple and Android? – March 20, 2013
Chinese media attack on Apple exposed; backfires badly – March 19, 2013
Prominent Weibo users, Samsung spokesman paid to bash Apple – March 17, 2013
China’s Ministry of Industry and Information Technology: Google controls too much of Chinese smartphone sector – March 5, 2013


    1. Kind of amusing, maybe inevitable, to have BOTH our hateful self-destructive Corporate Oligarchy AND the hateful, self-destructive Chinese ‘communist’ government tag team against Apple. Turds of a feather…

  1. There is no need to concern. This is part of the Chinese Gov’s test/lesson to all major foreign companies. With Tim Cook’s open apology to the world about the China Warranty “issue”, Chinese Gov will eventually tuned down its attack and approve the Apple-China Mobile iPHone deal. iCal me if you like…
    my 2 cents…

  2. Relax everyone. I fully expect AAPL to drop about $10/day in share value for the next few weeks as all of the analcysts and others trying to manipulate the price gain traction. Look for a $350 price tag before re-entering. /s

    1. Looks like they’re trying to get two days worth of drop in only a single day. I sure do hope that Apple buys some shares at these prices. It’s the only reasonable reaction.

      1. I like the idea of Apple ALSO taking advantage of this AAPL price manipulation game. Imagine Apple tossing a $Billion into buying AAPL shares in one day. It would be a hilarious display of counter-manipulation. I’d laugh all day long! 😆

  3. So much for those who thought Apple had reached a bottom or things were ready to turn around a week or two back. Apple shareholders need to be prepared for worse than this. I question any Apple shareholder who isn’t concerned about Apple’s share price decline. To just wave it off makes no sense at all. I’m only saying that something may be really wrong for Apple’s share price to keep declining. I think that anyone who intends to invest in Apple should be very wary. This quarter is sure to bring a bloodbath to long-term shareholders.

    As I’ve said before, Apple’s share price is going to keep getting hit the hardest despite having fallen so far over the past eight months. There’s just nothing supporting Apple now. Apple’s P/E is getting very close to Exxon territory and if you don’t think that’s bad, then what is. A falling share price, a steadily declining P/E, high volatility and yet the company is even offering a relatively high dividend. Is it my imagination or are those really bad warning signs? Call me a troll, but there’s nothing I see as a near-term positive for Apple. Even a huge score with China Mobile isn’t going to bring back Apple to near former levels at this rate of decline. Apple just seems to be running in the opposite direction of the current stock market climb.

    So let’s hear the rebuttal that will set my mind at ease…

    1. LB.
      oh yes Apple is DOOMED cause some “smart” Wall Street types just know the end is near for Apple.

      NO money left, huge debt and declining sales. OMG the end is near
      In a sensible world, share price would equate to company value. If you believe it does the you should fully trust your elected official.

    2. I have owned AAPL for over 25 years now. No one is a bigger proponent of the company or its products than I; both have made me very happy and (relatively) prosperous over the past two decades.

      That said . . . A number of disturbing truths have become abundantly clear under the leadership currently in place at Apple Inc.

      1. AAPL is no longer a growth stock.
      2. In fact, it is no longer even a value stock that can sit in one’s portfolio with relative safety, such as MSFT and XOM.
      3. Tim Cook and company have done–and are presently doing–nothing to defend AAPL against this market slide. NOTHING.
      4. The company is sitting on 140+ Billion Dollars in cash and doing ABSOLUTELY NOTHING with it.
      5. Management is not buying back AAPL stock . . . even at these very attractive low prices. Nor are they proposing a stock split to make it more available and attractive to small investors.
      6. They are not increasing the dividend to shareholders to return some of the aforementioned excess cash to those who actually own it.
      7. They are releasing no new products of consequence and refreshing old ones at a pathetic, anemic rate.
      8. They are apologizing world-wide for one product failure or warranty snafu after another and being universally vilified in the process.

      I wish I could disagree with you in some fashion, L_B48, but it breaks my heart to say that I cannot. I have lost all faith in AAPL, Apple Inc., Tim Cook, Jony Ive, et al., at this point . . . and must divest my portfolio of them all.

      This quarter is going to be a disaster for fans and supporters of this once great company, I fear. It may not be “May,” but it IS time to go away. First thing tomorrow morning.

      1. You should not be pessimistic or optimistic but realistic when investing. Invest with your mind not your emotions. Never fall in love with a stock. No matter how much you like a company or its product. I’m with you, I don’t believe Apple will be considered a growthstock going forward. However does not mean that it won’t have good occasional spurts upward. I believe it will be more of a value stock. And that’s okay! No company can continue to be a growth stock forever. No one. And you are correct, Apple could be a value trap for those who are not careful. I think Tim Cook and company are finally trying to fight back but it is a bit late in some areas. I’d like to see them do something with at least part of that huge pile of cash. Something constructive other than earning a little bit of interest. I think increased share buyback and a bump up in the dividend is certainly appropriate. And logical. A stock split is not something I would like to see at least not now. They are going to bring out products this year but it looks like just a refresh. That won’t generate a lot of interest. The one exception that seems eminent is the smaller lower-priced iPhone for the emerging markets. That phone will help in the long run but for those are shortsighted it may not help AAPL with their shareprice near-term. I still believe that if they had a larger iPhone available right now AAPL would still be hovering around $600. The run-up last summer was a little bit too much to sustain $700. Apple has had its share of goofs in the last year. Some important some not so important and they all are reported in the news. But, unlike many here seem to think, those failures by Google and Microsoft are reported just as often. And of course Apple’s competition jumps all over it. Why wouldn’t they? Apple certainly enjoys seeing others fail. It’s business. It’s competition. You’re out to win. Apple has been in the driver’s seat for the last few years. Not so much lately. And who knows, maybe they do have something extraordinary coming this year? But I have to admit, despite Tim Cook’s comments, information about impending products are almost impossible to hide. I certainly hope that you took profit last summer. Although it sounds like you’re still holding. I wouldn’t give up on Apple but I’d be real careful putting more money into it. If you’re looking for growth, there are many, many stocks out there with much more potential. But you don’t have to worry about Apple going broke anytime soon. And they still make the best stuff.

    3. I question any Apple shareholder who isn’t concerned about Apple’s share price decline. To just wave it off makes no sense at all.

      No, but going all MaNIaCaL about the AAPL price manipulative game playing of a gang of psychopathic bastards in biznizz doesn’t make any sense either. The last thing Apple should do is capitulate to these self-destructive loonies.

      However, as rdiddly pointed out above, wouldn’t it be kewl if AAPL took another tumble, thanks to further AAPL manipulation, then bought up their own shares on the cheap! That would be clever.

  4. When oh when do we see BELEAGERED APPLE in MDN posts. The market is climbing and AAPL is sinking. At 2.5% a day drop and GOOGLE climbing they will have a bigger market cap in 19 more business days. So glad I got out at $450. I will move back in at $325 next month. If they are still in business that is.

  5. It may be time for Mr. Cook, to take a walk. It doesn’t seem that he can do anything right lately. He has no clue how to innovate anything. I say get rid of him and bring on someone that understands this space. An iWatch…really, who is going to wear that? Get with the future Apple, I had to sell, I had no choice, it was going lower and lower and lower…..I am lucky I was able to in time.

  6. “Shares of Apple are down … 1.6%, at $435.40, following a note to clients this morning by Citigroup’s Glen Yeung in which he reiterates a Neutral rating on the stock …, after reflecting upon reports last week of push-back in China against the company by media and regulators,” Tiernan Ray reports for Barron’s… “Writes Yeung, ‘a series of anti-Apple propaganda that began on World Consumer Rights Day on 3/15′ give him concern ‘about the impact of this propaganda on Apple’s China market share,’” … Ray reports…”

    In other words, the Street is concerned that Apple is not going to play nice with the PRC & let their iDevices be used as part of official government surveillance of the people of China. If Apple doesn’t comply, they will be given the official slow road by the government, and previous estimates of penetration in the huge China market (speed and depth) will have to be cut back.

    Oh, just in case you were wondering, there is no price to be put on protecting people’s privacy and doing the right thing. Not on the Street anyway. And not in the official halls in Bejing either.

  7. in the past there have been bear attacks on apple with the same sort of gloom and doom from the pessimists in here
    #1 the Chinese are using apple as the scapegoat for the embarrassing cyber attacks that they were tied to publicly just before the apple attacks started
    #2 apples “problem” is how to make items faster than 1 every ten seconds which according to Cook is the rate they are delivering them
    #3 running an existing product for a bit longer might make sense if you consider that the ramp up of the new product was the primary reason apple was only able to sell one item every 10 seconds
    #4 if apple is doing something with its cash pile the appropriate time to say something is the next profit call in a few weeks
    #5 if the basic design invented by apple is true any upgrade will seem incremental and insignificant. if the design esthetics are so faulty and outdated why are so many companies copying them ?
    #6 you don’t throw the baby out with the bath water just to be different or new
    that is why apple had to step in there and give us an alternative to phone book size manuals and bloatware in the first place. the so called features of the blackberry for instance are only an app away from being on the i phone if i want them . i don’t want a picture of me filming my friends as i film my friends i know what i look like with my face screwed up in concentration i do not need to inject it into my films . imposing superfluous content on our interface or creations is exactly why people choose apple over the other guy. there are no pop up adverts on my mac hidden in my actual applications an inconvenience using google that seems to be lost on android users

  8. anti-Apple propaganda

    Well put. AKA …manipulation…

    Propaganda is de rigor in any totalitarian state as well as political parties hoping to achieve a totalitarians state. ‘We The People’ are treated as suckers who are too stupid to see through the manipulative bullshit. Fortunately, when the emperor has no clothes, there are many of us who notice, care, and speak up. You’re welcome. 😀

  9. Do you suppose Glen will now write an article saying he wrong to have jumped the gun on this so-called problem in Chinese media, or at least to say things are looking up?

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