Apple's stock has slipped below $US500 for the first time in 11 months as investors reacted to reports signalling the company's latest iPhone is falling further behind a range of sleek alternatives running Google's Android software.
The latest indication that Apple, the world's most valuable company, is seeing sluggish demand for its iPhone 5 emerged in separate stories published on Monday in the Japanese newspaper Nikkei and The Wall Street Journal.
Both publications cited unnamed sources saying Apple has dramatically reduced its orders for the parts needed to build the newest iPhone because the device isn't selling as well as the company hoped.
The adjustment means Apple will buy about half as many display screens for the iPhone as management originally planned for the opening three months of the year, according to the newspapers.
Apple Inc, based in Cupertino, California, declined to comment on Monday.
Spokeswoman Natalie Kerris said Apple executives would share their views on market conditions on January 23 when the company is scheduled to release its financial results for the final three months of 2011. The period covers the first full quarter that the iPhone 5 was on sale.
Although Apple hailed the iPhone 5 as the best version yet of a product that has revolutionised the telecommunications and computing industry, the company's stock has wilted since the device hit the market.
After peaking at $US702.41 on the day of the iPhone 5's September 21 release, Apple's stock has plunged nearly 30 per cent. The shares fell $US18.55, or 3.6 per cent, to close Monday's regular trading at $US501.75, dragging the company's market value nearly $US190 billion ($A180.60 billion) below where it stood in late September. The stock traded at $US498.51 earlier in the day, its lowest price since last February.
The stock's decline hasn't been entirely caused by concerns about the iPhone 5's sales performance. Industry analysts are also worried about the recent introduction of a smaller, less expensive iPad cutting into the company's profits.
But the biggest fears hover around the iPhone because it has become Apple's most valuable product since the company's late chief executive, Steve Jobs, unveiled the first model in 2007.
Apple has sold more than 271 million of the devices since then, and in the company's last fiscal year ending in September, the iPhone generated $US80 billion in sales to account for more than half of the company's total revenue.