Apple briefly dipped below $500 on Monday, its lowest intraday price in about one year. Main reason for the fall were press reports according to which Apple has cut orders to Sharp, LG and other suppliers of iPhone-5 parts due to weaker than expected iPhone demand.

Apple shares hit an all-time high of $705 right after the iPhone-5 release in September. Since then they have lost about $200 billion in market capitalization, due to fears that increasing competition from Samsung and other tech companies will lead to lower profit margins.

Samsung recently announced that its Galaxy-S smartphone has sold 100 million times since its launch in May 2010. Tech analysts expect that Samsung will sell 290 million smartphones in 2013 versus Apple’s 180 million iPhone sales.

Technically, there is no need to say that the Apple chart looks terrible. Potential support is at the 400 area but the stock is like a falling knife you don’t want to touch.

Please note that Apple’s weighting on the Nasdaq-100 is about 15%, which explains a bit of Nasdaq’s underperformance vs the S&P. Still, Nasdaq has gained about 5% in the last three months despite Apple’s severe drop.

Petros