Weak demand for iPhone 5 sees Apple'sstock slip below $500

San Francisco: Apple's stock slipped below $500 for the
first time in 11 months on Monday as investors reacted to
reports signaling the company's latest iPhone is falling
further behind a slew 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 Monday in the
Japanese newspaper Nikkei and The Wall Street Journal.
Both publications cited unnamed people familiar with the
situation 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., which is based in Cupertino, California,
declined to comment Monday.
Spokeswoman Natalie
Kerris said Apple executives would share their views on
market conditions Jan. 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 $705.07 on the day of the iPhone 5's 21
September release, Apple's stock has plunged nearly 30
percent. The shares fell $18.55, or 3.6 percent, to close
Monday's regular trading at $501.75, dragging the
company's market value nearly $190 billion below where
it stood in late September. The stock traded at $498.51
earlier in the day, its lowest price since February.
The stock's decline hasn't been entirely caused by
concerns about the iPhone 5's sales performance.
Industry analysts are also worried....