Apple's iPhone 5 may not be a hit in China

Concerns that the latest iPhone may not be a hit in China caused Apple shares on Friday to extend their slide from a record high price hit in September.

Apple shares were down 3.76 per cent to $509.79 at the close of the Nasdaq exchange, with the price eroding further in after-hours trades.

Stock in the iPhone, iPad, iPod and Macintosh computer maker have lost more than a quarter of their value since topping $700 per share in September as the iPhone 5 was poised to launch in the US and a half-dozen other countries.

The latest bite out of Apple shares came as the iPhone 5 made a lackluster debut in China and an analyst reported that Apple has cut orders for smartphone parts.

“Based on our survey, we believe the sale of iPhone 5 is unlikely to be successful in China,” said a note from TH Capital.

The note said Apple’s sales channel in China “has room for better optimization of sales and service” and that the “high price of iPhone 5 turns people away.”