Apple Inc's shares fell more than 4 percent to a 16-month low on Wednesday, after chipmaker and key supplier Cirrus Logic's disappointing revenue forecast for this quarter revived concerns about weakening demand for iPhones and iPads.
Apple stock fell as much as 5.3 percent and was down 4.4 percent at $407.62 at midday. The company has lost more than 40 percent of its market value since a September 2012 peak, battered by worries about intensifying competition and its effect on the company's margins.
Cirrus Logic, which makes analog and audio chips for the iPhone and iPad, late on Tuesday forecast revenue of $150 million to $170 million, well below Wall Street's average forecast for above $190 million.
Apple reports quarterly results next Tuesday. Analysts say Cirrus Logic's dimming outlook lends weight to arguments that consumers' love affair with the iPhone is waning as challengers such as Samsung Electronics vie for their attention.
"It's a reminder of weakening demand, and the challenges around product transitions" for Apple, Cross Research's Shannon Cross said. "There's not a lot of conviction about what the second half is going to look like."