Reports claiming Apple has reduced iPhone 5 parts orders in the face of weaker than expected demand caused Apple stock to briefly drop below $500 Monday morning, as traders reacted to the news.
Seen above – The price of Apple stock at the time of this article.
AAPL shares were down nearly 4 percent before the market opened, a hit that came after both The Wall Street Journal and Nikkei issued reports claiming that Apple had slashed iPhone 5 component orders due to weak demand. The company is said to have cut “roughly half” of its orders for the 4-inch display on its latest smartphone, and also initiated a drawdown on other components in the current quarter, which concludes in March.
This comes just over a week before Apple is set to announce their earnings for the December quarter. Sales of Apple products are expected to be record setting. Analyst have had high expectations for the iPhone in particular, with some expecting sales of 50 million.
Apple’s stock has fell nearly 17% over the last three months, with word that investors are concerned about Apple’s gross margins in 2013, with additional concerns voiced about the company’s growth potential.
The company’s high point came in the middle of September, as its stock briefly hit more than $700 per share.