Apple shares slumped below $500 on Tuesday for the second time this week following reports that the company is seeing lower-than-expected demand for its newest iPhone.
Before Monday, the company's stock hadn't fallen below $500 in nearly a year.
Following news that the company had cut orders for certain iPhone parts as demand waned, analysts at Nomura Securities lowered their earnings estimates for the company.
Apple shares slumped below $500 on Tuesday for the second time this week amid reports that the company is seeing lower-than-expected demand for its newest iPhone
Apple is facing increased competition from its smart-phone rivals, including Samsung, HTC and LG
'We are cutting our Apple estimates this morning to reflect weaker-than-expected sales of the iPhone 5 as indicated by our checks,' Nomura analysts wrote in a report.
The analysts had expected Apple to earn $51.68 per share in 2013 but have revised their estimate to $45.54 per share.
Apple's stock has been declining steadily since September, when it hit an all-time high closing value of $702.10.
The stock last fell below $500 in February of 2012.
Apple will release its first-quarter fiscal results on Jan. 23. The company has not reported a drop in quarterly earnings in nine years.
Apple's shares last fell below $500 nearly a year ago in February of 2012
But it's now facing increased competition from rival smart-phone makers, including Samsung, Nokia and LG.
Apple wasn't alone in its decline this week. The markets overall edged lower Tuesday amid fears that the government would fail to increase its borrowing capacity and therefore default on its debt as soon as mid-February.