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Apple Closes Above $400, Falls Sharply on Growth Concerns (Update 3)

Updated from 1:02 P.M. EST to reflect closing price in the first paragraph.

NEW YORK ( TheStreet) -- Apple (AAPL - Get Report) shares fell below $400 for the first time since December 2011, but closed above that level on the back of weaker-than-expected-results from one of its suppliers, Cirrus Logic (CRUS - Get Report). Apple shares reached levels not seen since January 2012.

Cirrus Logic, which provides chips for Apple's products, missed estimates when it reported preliminary results Tuesday night. The company said revenue for the fourth quarter grew 87% to $206.9 million. That was below analysts' estimates of $210.2 million.

The company also announced that it "will take net inventory reserve of $23.3 million of which approximately $20.7 million is due to a decreased forecast for a high volume product."

For the company's first quarter which ends in June, Cirrus Logic said it expects revenue to be between $150 million and $170 million. Analysts polled by Thomson Reuters are expecting $182.38 million in revenue.

"We feel investors have been waiting for expectations to be reset lower following broadly held concerns over iPhone 5 and iPad 4 demand," Canaccord Genuity analyst Bobby Burleson wrote in a note. The analyst lowered his Cirrus price target to $25 from $30.

Shares of Cirrus Logic were sharply lower following the preliminary results, off 10.04% to $19.26.

There were also reports that demand for the iPad mini was slowing drastically, as Apple gets ready to update its popular tablet.

DigiTimes, which is often spotty with Apple rumors, cited sources in Apple's supply chain, saying they were seeing a 20% to 30% decline in shipments for the iPad mini. Apple may have adjusted its reserves for the current 7.9-inch tablet to 10 million to 12 million units, down from 15 million units in the first quarter.

Shares of Apple fell as low as $399.58, before finishing at $402.59, down 5.55% on the session.

-- Written by Chris Ciaccia in New York

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