Apple Inc. shares fell below $US400 yesterday for the first time since April, according to the Wall Street Journal. The share drop is part of a global sell-off that started in China and is now hitting US markets.
The stock price has tumbled from a record high above $US700 in September last year.
Bloomberg reported that Apple, the world's most valuable technology company, fell 2.7% to $US402.54 at the close in New York yesterday, after earlier dropping as low as $398.05. The shares have declined 24% this year, compared with a 10% gain in the Standard & Poor's 500 Index.
But Apple shares have stabilized over the past two months after a big fall early in the year. Increasing competition in Apple's core products and waning investor faith in the company's ability to innovate appears to have played a role in the stock price fall.
Jefferies analyst Peter Misek cut his price target to $US405 from $US420 on Monday, said the Wall Street Journal, due to what he says are diminished production levels for the iPhone. Bloomberg reported that Misek estimated in a research report that in the second half of this year, Apple will build a maximum of 85 million iPhones, less than his prior estimate for 110 million units. Misek also cut his full-year earnings and revenue estimates for the iPhone and iPad maker.
Apple shares recently fell 3.5% to $US399.17. The stock fell as low as $US385.10 back on April 19, before trading in the low $400s for the past two months, according to the Wall Street Journal.