Recent stock markets have been risen after the Fiscal Cliff deal; however, the Dow Jones Industrial Index is touching the major resistance level at 13,660 points. Despite the fact that Dow Jones Industrial Index is going up in the past couple days, Apple stock continues to drop and breaks the major $500 per share support level.
Apple stock started to drop when it reached $700 per share in September 2012; it has dropped 28% already. The current price is below $500 per share at around $480 to $498 per share range. Obviously, it's after all the new products such as the iPhone 5, iPad Mini, the new iPod Touch, etc. came out; the stock started to drop based on negative news from these new lines of products.
Moreover, Samsung's phones have invaded the Apple's iPhones and slowly gaining its phone shares in the market. This posed a major threat to Apple's profitability. As a result, Apple cuts orders on the new iPhone 5 parts; it is due to weak demand for iPhone 5.
Personally, I believe Apple stock will continue to drop and finding its support level at $475 per share. If it breaks below $475 per share, then it will be a disaster.