Apple Drops to 11-Month Low on Demand Worries

This chart shows Apple’s stock performance since January 2012.

On Sunday, the Wall Street Journal published an article stating that Apple had cut iPhone screen orders for the January-March quarter in half. The article quoted insiders, stating that the cutback was due to weaker-than-expected demand for Apple’s latest smartphone. The article, though vague and highly disputed, spread through the web like a wildfire and Apple’s troubled shares took a nosedive on subsequent trading days.

On Tuesday, Apple’s shares closed just below $486, marking the lowest price since February 2012.

Since hitting an all-time high in mid-September Apple’s share price dropped 30 percent on a constant stream of bad news and speculations.

A week from today, on January 23, Apple will report its first-quarter earnings, and the question of whether or not iPhone demand is waning will be answered for now. Analysts are expecting 47 to 50 million shipped iPhones for the December quarter and any number below 47 million will likely send Apple’s shares tumbling even further. The Cupertino-based company hasn’t been under this much pressure for a long time and investors will be on the edge of their seats until next Wednesday.