14 Jan 2013

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 shares could drop below the $500 mark, if premarket trading trends continue throughout the day.
In premarket trading today, Apple's shares had slipped down over $17 to land at around $503. At some points this morning, Apple's shares were even lower, though they didn't dip below the $500 mark.
As trading on the Nasdaq got under way, Apple did very briefly hit $499.64 a few minutes after the opening, but has been above $500 since then, largely in the $503 range.

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.
We will continue to update this story throughout the day as Apple's shares make notable shifts.
Update at 6:45 a.m. PT and again at 9:13 a.m. PT: Added Apple's share price as trading began for the day on the Nasdaq, and updates on the stock movement since then.

http://news.cnet.com

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