Apple loses its shine as shares drop below $500 The iPhone and iPad-producer joined the exclusive $500-a-share club in February after record sales of its devices, and briefly surpassed $700 a share in September. However, analysts warned Apple could be losing momentum as it briefly slipped as low as $497 in pre-market trading. It returned to $508.92 before the markets opened and was at $513 in late trading. The drop came as analysts slashed their target prices for Apple stock, following reports the Californian technology giant is cutting orders of the iPhone5, indicating sluggish sales. Citigroup made the most aggressive downgrade, reducing its target price on Apple shares $675 to $575 saying reduced orders highlight the possible risks for investors. [They] bring into question the strength of the iPhone5 and refocus investors on to the risks in the Apple story. As such, we see the likelihood of any near-term rally as diminished," Citigroup said. Analysts at UBS and Jefferies also cut their price targets last week, amid fears that the iPhone5 had not been as successful as the previous model. The downgrades had a knock-on effect across Apple's Asian suppliers. "The iPhone 5 is game over," said Jeff Pu, a Taipei-based analyst at Fubon Financial Holding. We are turning cautious on the Apple supply chain, as we believe we are at the peak of many product cycles. Demand in America is "peaking," and is "just so-so" in China, he added. Apple battled against weekend reports of lacklustre demand from Chinese shoppers, saying it had beaten analysts" expectations by selling 2m iPhone5 handsets in the country in its first three days on sale there. Tim Cook, chief executive, said customer demand for the device had been "incredible, setting a new record with the best first weekend sales ever in China." However, the figures did little to allay concerns that Apple needs to launch a new device that can reshape the market in the way that the iPhone and the iPad did if it is to maintain its momentum. Although Apple only launched the iPhone in 2007, the smartphone now accounts for over half of the company's revenues, according to Bloomberg data. Demand is expected to decline after rival manufacturers such as Samsung improved their products and as newer devices supersede Apple's offering. By comparison, Apple's iPods, which in 2008 generated nearly a quarter of Apple's income, now register just over 6pc.