Yesterday shares of Apple, the world’s most profitable tech company, fell 4.2% in U.S. trading, marking the fifth day in a row that Apple’s shares have retreated. Shares of Apple fell to 580.13 and are down just under 10% from their peak of 644 reached on April 10th.
Apple’s stock is up over 43% year over year.
Apple is among the best performing stocks on the Nasdaq and S&P 500. Since Apple has a heavy weight on these stock indexes, a declining Apple makes its presence felt.
Wedge Partners said in a note on Friday that demand for the new iPad is beginning to wane.
Last week, Verizon announced that the wireless carrier will charge their customers $30.00 to upgrade their iPhones.
Concerns are growing that mobile phone carriers such as Verizon will cut subsidies for the iPhone. Verizon is currently subsidizing iPhone 4S phones.
Each time a customer signs up for a new contract, Verizon pays out a subsidy.
As Apple approaches their earnings report next week on April 24th Apple analysts have issued statements about potential challenges for Apple products.
Piper Jaffray analyst Gene Munster, who covers Apple and has an overweight rating, recently wrote in a note that Apple’s Mac sales for the quarter may miss analysts’ expectations. He noted that Macs will account for 15% of March quarter revenue.
Munster also wrote that iPhone and iPad sales will likely offset any weakness in the Mac segment.
Apple is expected to unveil their new iPhone 5 in late spring or summer.