Apple shares dip below $500 as concerns grow about sales of iPhone5
Has the bloom gone off Apple? Shares in the iPhone/iPad giant which hit $702.10 on Sept. 19 have dropped below $500 for the first time since February. That's a fall of 27 per cent.
iPhone5: Slowing sales?
Apple fell to $499 in premarket trading in New York after Citigroup reduced its rating for the stock, concerned that demand for the iPhone 5 is slowing.
Bloomberg, reporting a Citigroup note, said the company’s Asian suppliers have been reporting cuts in orders, raising questions about the iPhone 5’s strength.
The bank reduced Apple to 'neutra'l from 'buy' and cut its price target to $575 from $675. Apple’s shares are now heading toward their third monthly drop with competition from Samsung and Nokia .
According to data compiled by Bloomberg, Citigroup joined at least four other banks in cutting Apple price estimates this month.
Li Yue, chief executive officer of world’s largest mobile company China Mobile Ltd., has said he won’t add the newest iPhone to his network until he’s offered a better deal.
UPDATE Later Apple's stock bounced higher after its iPhone 5 launch in China performed better than initial reports of small queues seemed to suggest. After hours the price reached $520.00.