Apple shares fall after report component orders cut

Shares of iPhone maker Apple fell sharplyshares at the open after The Wall Street Journal reported that the company has cut its orders for iPhone 5 components due to weaker-than-expected demand.

Its stock, whichwas down more than four per cent early in the session,closedoff $18.55, or 3.57 per cent, at $501.75.

Monday's dropbelow the $500 mark was thefirst fall below that levelsince February.

The drop came after a newspaper reportclaimingApple's first quarter orders for iPhone 5 screens have dropped to about half of what the company had previously planned to order.

The Cupertino, Calif., company has apparentlyalso cut orders for components other than screens.

But three analysts for Swiss bank UBS analysts came out with a note later in the morning saying the report was old news.

"The article says Apple notified suppliers of the cut last month, which is when we and most of the Street reported it," Steven Milunovich, Peter Christiansen and John Roywrote.