Apple shares slip toward $500 on iPhone 5 demand worries

Some reports have suggested that the iPhone is experiencing weaker-than-expected demand, pushing Apple's shares lower.

Apple's iPhone 5
Apple's iPhone 5 CNET

Apple's stock today dallied with the $500 mark, and not in a good way.

Shares of the iPad and Mac maker closed the day at $501.75, down more than 3 percent, after spending much of the day floating in the $503 range. In the waning moments of the trading day, Apple shares had trended downward as low as $500.07 before rallying in the final five minutes.

As trading on the Nasdaq got under way this morning, Apple did very briefly hit $498.51 a few minutes after the opening. The share price had been slipping notably in premarket trading.

Apple's investors are unloading shares over news that the company has cut iPhone 5 component orders in half due to weaker-than-expected demand for its new smartphone. That came just weeks after UBS analyst Steven Milunovich cut his iPhone sales estimates by 5 million units in three 2013 quarters, saying that Apple would face increasing trouble selling both its smartphones and tablets.

Still, Milunovich isn't so worried about Apple's shares . He wrote in his research note that he expects Apple's shares to hit $700 over the next 12 months.

Over the last several months, Apple's shares have been steadily coming down. Apple's 52-week high is $705.07. At a closing price on Friday of $520.30, Apple is closer to its 52-week low of $418.66 than its high. In the last three months alone, Apple's stock has slid 17 percent.

Last update at 1:13 p.m. PT: This story was updated several times during the day to reflect intraday shifts in Apple's share price, including the closing price.

 

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