Apple shares dip below $500 for first time in nearly a year

A customer takes the new iPhone 5 off the shelf Credit: Lewis Whyld/PA Wire

Apple Inc shares have dipped below $500 (£310.91) for the first time in almost a year, after reports it is cutting orders for screens and other parts, from suppliers.

The decision to slash orders came after increasing competition from other smartphone companies affected the demand for its latest iPhone 5.

Apple was overtaken by Samsung last year as the world's biggest seller of smartphones, helped in part by the popularity of its Galaxy Note II, in addition to releasing a wider range of devices throughout the year.