Fittest loser
Article updated: 12/17/2012 5:59 AM

Apples shares decline below $500 for first time since February

Apple Inc. shares dropped below $500, the first time since February, after the company was downgraded by Citigroup Inc. on concern that demand for the iPhone 5 model is slowing.

Apple Inc. shares dropped below $500, the first time since February, after the company was downgraded by Citigroup Inc. on concern that demand for the iPhone 5 model is slowing.

 

Associated Press

 1 of 1 
 
text size: AAA
By Bloomberg News

Apple Inc. shares dropped below $500, the first time since February, after the company was downgraded by Citigroup Inc. on concern that demand for the iPhone 5 model is slowing.

In premarket trading, Apple stood at $498.69 as of 5:19 a.m. New York time. The stock of the Cupertino, California-based company had dropped 3.8 percent to $509.79 in Nasdaq Stock Market trading on Dec. 14.

Advertisement

Citigroup downgraded Apple to neutral from buy and reduced its price target to $575 from $675. The iPhone, which debuted in 2007, is Apple's biggest product by sales. It accounted for 51.42 percent of revenue in the year ended September, according to data compiled by Bloomberg.

Near-term supply-chain order cuts, while inconclusive, raise questions about iPhone 5's strength, Citigroup said in the note after checks of the hardware supply-chain in Asia.

The prospect of weak iPhone 5 shipments creates near-term earnings downside for Apple's supply chain, and the involved companies are likely to see further selling pressure in the near term, Citigroup said.

Comments ()
We are now using Facebook comments to offer a more inclusive, social and constructive discussion. Guidelines: Keep it civil and on topic; no profanity, vulgarity, slurs or personal attacks. People who harass others or joke about tragedies will be blocked. If a comment violates these standards or our terms of service, click the X in the upper right corner of the comment box. To find our more, read our FAQ.

This article filed under

Business Video
Area Business Calendar

BusinessDirectory

Connect with a business or service in your area fast. First select a town, then enter a search term or choose one of the listed popular searches:

Don't see your town listed? Visit our full directory to begin your search.

MostViewed

Today
Yesterday
Most Commented
Top Jobs

    View all Top Jobs Place a job ad

    DHExtras

       
    • Newspaper next section - Newspaper next section Report card checker - report card checker
    • Dh innovation award 2 - Dh innovation award 2 Zillow /real estate page
    • Discuss refer On Guard series
    • Newspaper archives -- Monday or anyday Mike North

    FacebookActivity