iPhone failed in China period
5,000 iPhone units sold in China is very depressing. Even if they sold twice as many (10,000) or even three times (15,000), the people of China apparently are not impressed with the iPhone. Even after the next quarter, sales figures are only going to remain steady and slow or drop considerably.
In fact, the iPhone has broken a new record....the "lowest units of smartphone ever sold in history" from a product launch release!