Apple Cuts Orders, Stocks Tumble

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Apple cuts orders, and stock tumbled early Monday, following reports that demand for the iPhone 5 may be waning.

Shares of Apple fell 3.5% to end the day at $501.75. Earlier, the stock dipped below $500 a share. Apple’s stock has not closed below $500 a share since February 2012.

The sell-off followed reports that Apple had cut orders for certain iPhone 5 components because of weakening demand for the latest version of the popular smartphone.

Apple was unavailable for immediate comment.

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Apple’s stock has been trending lower since September, when euphoria over the iPhone 5 debut pushed shares to an all-time high close of $702.10.

In October, Apple reported mixed results for its fiscal fourth quarter, saying it sold just shy of 27 million iPhones, up 58% from a year earlier. At the time, Apple was having trouble keeping up with demand for the iPhone 5.

The company recently shot down rumors that it was developing a cheaper version of the iPhone.

Apple will release its fiscal first-quarter results on Jan. 23. Analysts surveyed by Thomson Reuters expect earnings to decline 4% from the prior year, although estimates vary widely. Apple has not reported a drop in quarterly earnings in nine years.

By Ben Rooney, CNNMoney

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