Apple Shares Drop Under $500 Over Weaker iPhone 5 Sales

Apple shares dropped to less than $500 after analysts said the demand for its iPhone was slowing

By Barbara E. Hernandez

| Monday, Dec 17, 2012 | Updated 6:15 PM PDT

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Apple Shares Drop Under $500 Over Weaker iPhone 5 Sales

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SAN FRANCISCO, CA - SEPTEMBER 12: The new iPhone 5 is displayed during an Apple special event at the Yerba Buena Center for the Arts on September 12, 2012 in San Francisco, California. Apple announced the iPhone 5, the latest version of the popular smart phone as well as new updated versions of the iPod Nano, Shuffle and Touch. (Photo by Justin Sullivan/Getty Images)

The stock market is fickle. Just one report from Citigroup questioning the slowing demand for the iPhone threw Apple shares into free fall -- dropping less than $500 for the first time in almost a year.

The last time Apple shares were less than $500 was in February, certainly long before the iPhone 5 and iPad Mini were introduced, according to Bloomberg News. Citigroup reduced its rating on Apple stock on Friday.

At the close on Monday, Apple shares had risen to $520.

Still, Apple's peak price was $702.10 on Sept. 19 in the full-on iPhone 5 frenzy. Now that the excitement has dulled, so has Apple's share price. Citigroup's report also isn't out of the blue. There have been numerous reports that Apple's Asian suppliers are cutting orders, so much so that four other banks have issued similar reports this month.

Does this mean Apple is a crappy company? Of course not. It just means it's not the flavor of the month right now. However we have a feeling its share price will rise dramatically once a new iPhone 6 or iPhone 5S is announced.