Apple's stock collapsed below $400 during midday trading Wednesday, a decline of more than 6% on the day and the first time that the stock has fallen below that milestone since December 2011.
The stock was hit by multiple pieces of bad news on Wednesday. Cirrus Logic, one of Apple's suppliers for the iPhone and iPad, reported a lower-than-expected revenue forecast, which investors took to be a sign of weaker demand for Apple's products. Peter Misek, an analyst with Jefferies, reported hearing that Apple is having production issues that could delay its next iPhone models and Digitimes, a publication with a mixed track record on rumors, reported hearing from supply chain sources that iPad Mini shipments are expected to decline by as much as 30% in the second quarter of this year.
Last week, Hon Hai Precision Technology — the manufacturer better known as Foxconn — reported that its first-quarter sales had declined 19% year-over-year, which one analysts pinned on disappointing iPhone sales.
Apple is set to report its earnings for the March quarter next week and investors seem to be preparing for the possibility of disappointing iPhone sales and profits.