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Apple's Shares Drop as Reports of Smaller Component Orders Surface

Apple may have over estimated the sales volume of the iPhone 5, causing a discrepency between Apple's component orders and sales of its new smartphone. According to the Wall Street Journal, Apple has cut its orders for iPhone 5 components for the upcoming quarter, which could mean weak current sales despite strong numbers at the phone's initial launch.

Shares of Apple stock have fallen early Monday morning in response to the news, dropping below $500 for the first time in almost 12 months and currently hovering at around $504 per share. This is down around $16 per share from Apple's share value of $520 at the close of the markets on Friday.

Apple's global smartphone market share is dropping as well, down from its peak of 23 percent at the end of the 2011 and beginning of 2012 to to just 14.6 percent during the 2012 third quarter. Samsung's share is altering inversely, with 31.3 percent in the third quarter of 2012, up from only 8.8 percent in 2010.

Unlike Samsung, which has numerous different smartphones at different price points, Apple only has the iPhone 5 and the older iPhone 4S and 4. There have been rumors of a less expensive iPhone, which could help retake some of the global market share. Phil Schiller, Senior Vice President of Worldwide Marketing, denied the release of a "cheap" smartphone, but falling sales of the iPhone 5 may cause Apple to start exploring different venues to keep up their high sales volume.