Apple stocks plunge as Icahn dumps his position

Apple stocks plunged by more than 3% on Thursday, in the wake of billionaire Carl Icahn withdrawing his position, owing to concerns about the company’s relationship with China.

The stocks of Apple fell by 3.06% to close at $94.83 on Thursday’s trade. “We no longer have a position in Apple,” Icahn told a business news channel. Icahn sold most of his remaining stake in February, he said. “I got out because I’m worried about China.” China shut down Apple’s iTunes Movies and iBooks services recently, showing that the company isn’t immune to the reach of Beijing regulators. “You worry a little bit, and maybe more than a little, about China’s attitude,” Icahn said. Apple has a good relationship with China, providing vast employment there, but also relies on the country for lots of sales, he said.

Icahn famously dubbed his long Apple position a “no-brainer” a couple years ago saying investing in Apple is how good investors make money.

In the second quarter results, earnings for the company came in at $1.90 per share (as compared with $1.97 expected) for an 18.5% decline from last year There was a big drop in iPhone shipments to 51.2 million units as compared with 61.2 million units last year — the first ever year-on-year drop — as well as weak iPad (10.3 million units as compared with 12.6 million units) shipments. China revenues, a recent point of concern, was weak as well at $12.5 billion as compared with $16.8 billion last year, and $18.4 billion, the last quarter. The company is targeting Indian markets with more affordable phones of late.