Poor sales in China prompts Icahn to dump Apple stock

Special to WorldTribune.com

China’s economic downturn and government interference led billionaire investor Carl Icahn to dump his stake in Apple.

“We no longer have a position with Apple,” Icahn told CNBC.

Carl Icahn. /Getty Images
Carl Icahn. /Getty Images

Icahn came away with $2 billion after selling the stock. At one point last year, he owned 53 million shares worth $6.5 billion.

Poorer than expected sales of the iPhone in China was a major factor in Apple’s 13 percent drop in second quarter revenue.

Icahn also pointed to Beijing’s passing of a law in March that required all content shown in China to be stored on servers based on the Chinese mainland. As a result, Apple’s iBooks and iTunes movies services were shut down in China.

Icahn began acquiring Apple stock in the third quarter of 2013 when they were trading at about $68 a share. The stock has shed 27 percent in the past year. On April 28, shares closed down 3 percent at $94.83.

Icahn said he informed Apple chief executive Tim Cook of the share sale.

“I called him to tell him that, and he was a little sorry, obviously. But I told him it’s a great company,” he said.