Apple is spoiling.
Shares of the highflying iPhone maker have fallen into bear territory — clawed down more than 20 percent from an all-time high in September.
Investors are concerned about how the world’s most valuable company, as measured by market capitalization, will deal with matters as varied as snafus connected to the production of its popular iPhone 5 and the so-called federal fiscal cliff — which could cut the spending power of consumers.
Apple shares yesterday fell 3.8 percent — a slightly larger decline than the overall tech-heavy Nasdaq’s descent of 2.8 percent.
“The bears come out of the woodwork,” said Brian White of Topeka Capital Markets.
Apple, worth $524.9 billion, is a widely held stock on Wall Street and any rush to cash out of the market takes its toll on the company.
“The fundamentals haven’t changed,” White said.
The opinion of many on Wall Street is that Apple still has the potential to become the first $1 trillion company.
For that to happen, Apple will have to ward off rivals like Google and Amazon that have been flexing their muscles.
Ron Daino, of RF Daino Global Advisors, has told clients shares might not bottom out until they fall to $523.
Since the iPhone 5 launched in September, shares in the company have dropped from a peak of $705 to yesterday’s close of $558. White still maintains a 12-month target of $1,111.
The company’s typically impressive supply chain has shown signs of wavering. Apple’s Chinese manufacturing partner Foxcsonn has had trouble producing the intricately designed iPhone 5, leading to long waits for consumers to get the devices.
Yesterday, Foxconn’s chairman repeated the lament, telling reporters at a conference in Taiwan that factory workers were still struggling with the phone’s design. One of the problems is the way the aluminum used to make the phone scratches easily.
The same aluminum is used in the new iPad mini that Apple launched to record sales last weekend. Shortages of that device were also expected.
Wall Street also is watching Apple’s profit margins, which declined the past two quarters from a peak 47 percent in March to 40 percent in September.