Apple stock falls below $500 for first time in 11 months

Apple's stock fell to under $500 for the first time in 11 months as investors reacted to reports signalling the company's latest iPhone was falling further behind sleek alternatives on offer powered by Google's Android software.

The latest indication that demand for the compay's iPhone 5 was slipping came in separate stories published yesterday in The Wall Street Journal and the Japanese newspaper Nikkei .

Both publications cited unnamed people in the know as saying Apple had dramatically cut its orders for the parts needed to build the newest iPhone due to the device not selling as well as the company hoped. (See: Apple scales down iPhone component orders)

The order scale down means Apple would buy about half as many display screens for the iPhone as planned by the management originally for the opening three months of the year, according to the newspapers.

Apple spokeswoman Natalie Kerris said Apple executives would share their views on market conditions on 23 January, when the company was due to release its financial results for the final three months of 2011.

After peaking at $705.07 on the day of the iPhone 5's 21 September release, Apple's stock is down nearly 30 per cent. The shares retreated 18.55 dollars, or 3.6 per cent, to close yesterday's regular trading at 501.75, which dragged the company's market value nearly $190 billion below where it stood in late September.