share price is lingering around the $488 mark, down more than 30 percent from its 52-week high
of $705.07 just prior to the iPhone 5 launch. Shares of Apple stock dropped to as low as $483.80 earlier this morning, and is
on pace to the close the day below $500 per share, which would be the
first time that's happened since February 15 of last year.
There are a number of reasons why Apple's stock has fallen over time, but in this particular instance, it's due to recent reports
that Apple reduced orders for iPhone 5
components due to weaker than expected demand. Sterne Agee analyst Shaw Wu refuted the notion in a note to investors today, but it came as little consolation to investors.
"As far as we can tell, iPhone 5 demand remains robust," Agee wrote.
Wu said that the reduced component orders is probably the result of improvements in Apple's production. Fewer components are needed to yield a greater number of iPhone devices, as well as for other products like the iPad.
It's a plausible explanation, but investors seem to be looking for any reason at all to dump Apple stock these days. Perhaps many of them got caught up in the pre-release iPhone 5 hype and the fact that Apple's share price was trading at an all time high, and now have buyer's remorse. Dumping stock so quickly could bite them in the backside, however, as Wu believes Apple's share price could reach $840 in the next 12 months.