Apple Falls Below $400 as Supplier Reports IPhone Chip Glut
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Apple Inc. dropped below $400 for the first time since December 2011 after one of its audio-chip suppliers, Cirrus Logic Inc., reported an inventory glut that suggests iPhone sales may fall short of analysts’ expectations.
Apple’s shares declined 5.5 percent to $402.80 at the close in New York, and earlier touched $398.11. Cirrus, which makes sound components for the iPhone and iPad, is an indicator of demand for Apple’s top-selling products, according to Peter Misek, an analyst at Jefferies & Co.