Apple hits new Low

Unlike other computer makers that sell primarily to business customers, Apple, led by Steve Jobs, targets consumers, which some analyst believe makes the company more vulnerable to economic slowdown than rivals.

Morgan Stanley analyst Kathryn Huberty suggested Wall Street estimates of Apple's future earnings had yet to fully reflect the potential impact of slowing consumer demand worldwide.

"We worry that consensus estimates have not been revised down to reflect slowing global consumer demand and that a broadly positive investment bias . . . limits upside to (Apple) shares over the next three to six months," she told clients on Monday.

She cut her price forecast for Apple shares and dropped her rating from "equal weight" to "overweight."

Separately, Mike Abramsky, an analyst with RBC Capital Markets, cut his rating on Apple to "sector perform" from "out-perform."

By midday on Monday, Apple's shares had recovered somewhat from their morning lows, trading down 13.7 per cent at $110.66. Apple's share have fallen more than 30 per cent since January.

Apple has already forecast a drop in margins for just-ended quarter and 2009 because of back-to-school promotions and the launch of new products.