Apple shares dropped to their lowest price in 11 months following reports that the company has cut iPhone production levels on lower than expected demand.
The stock fell 3.6 per cent to $501.75 in New York, the lowest closing price since February 15, 2011, Bloomberg reports.
Apple shares have now fallen 28 per cent since hitting a record high of $700 in September.
According to Japanese business publication Nikkei, Apple only ordered about half of the 65 million iPhone 5 displays it originally planned for this quarter.
"The iPhone is no longer unique, fashion fatigue will transpire and the rich price premium will be impossible to sustain," ABG Sundal Collier analyst Per Lindberg wrote in a research report this week.
James Cordwell, an analyst at Atlantic Equities Service, also said: "We're getting close to saturation. The real growth is going to come from emerging markets, and Apple's share in emerging markets is much lower than it is in other markets at the moment due to such high prices."
Based on time spent with industry sources at CES, Topeka Capital Markets analyst Brian White said this week that Apple may launch the fifth generation iPad and second generation iPad mini in March, followed by new iPhones in more sizes and colours between May and June.