Apple has proven many analysts and Wall Street wrong by revealing that they have sold over two million iPhone 5 in three days in China.

“Customer response to iPhone 5 in China has been incredible, setting a new record with the best first weekend sales ever in China,” said Tim Cook, Apple’s CEO. “China is a very important market for us and customers there cannot wait to get their hands on Apple products.”

Writing for Fortune, Philip Elmer-Dewitt pointed out that one particular analyst got it dead wrong.

According to Elmer-Dewitt:

[quote] Just before the news broke, Citigroup's Glen Yeung lowered his Apple price target to $575 from $675 and changed his recommendation to Neutral from Buy. On Friday, UBS' Steve Milunovich lowered his price target from $775 to $700, citing sources who told him they didn't expect the iPhone 5 to do as well in China as the iPhone 4S.[/quote]

Yeung was not the only culprit in getting China's sentiment towards Apple's iPhone wrong. It appears many investors felt the same. Apple stock dropped over 4 percent on Friday went long lines did not materialize in China for the iPhone.

"The phone’s seemingly quiet arrival can largely be put down to Apple’s sales system," Jon Russell writes for TheNextWeb. "The company requires customers to register to pick up a phone before they come to the store. This is an approach used to cut down on ‘scalpers’, who are resellers that have traditionally crowded Apple launches in China to buy up devices to sell on for a tidy profit."

 Full Press Release

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iPhone 5 First Weekend Sales in China Top Two Million

BEIJING—December 17, 2012—Apple® today announced it has sold over two million of its new iPhone® 5 in China, just three days after its launch on December 14. iPhone 5 will be available in more than 100 countries by the end of December, making it the fastest iPhone rollout ever.

“Customer response to iPhone 5 in China has been incredible, setting a new record with the best first weekend sales ever in China,” said Tim Cook, Apple’s CEO. “China is a very important market for us and customers there cannot wait to get their hands on Apple products.”

iPhone 5 is the thinnest and lightest iPhone ever, completely redesigned to feature a stunning new 4-inch Retina® display; an Apple-designed A6 chip for blazing fast performance; and ultrafast wireless technology*—all while delivering even better battery life.** iPhone 5 comes with iOS 6, the world’s most advanced mobile operating system with over 200 new features including: Shared Photo Streams, all-new Maps app, Passbook® organization and even more Siri® features and languages including Mandarin.

*Network speeds are dependent on carrier networks, check with your carrier for details.
**Battery life depends on device settings, usage and other factors. Actual results vary.

Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and is defining the future of mobile media and computing devices with iPad.

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Sources: Fortune, Apple, TheNextWeb