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 >Contact by Email. Follow @Commodity_Bull
TheStreet’s Fundamentals of Investing Course will teach you the keys to making the right decisions in any market.
TheStreet’s Personal Finance Essentials Course will teach you money management basics and investing strategies to help you avoid major financial pitfalls.
TheStreet Courses offers dedicated classes designed to improve your investing skills, stock market knowledge and money management capabilities.
More from Technology
Rambus Shares Rise on News of Tech Deal With Visa
Visa says the deal will enable the credit card company to significantly expand its use of tokenization to 'all types of transactions beyond Visa cards, including those on domestic card networks, account-based and real-time payments systems.'
Another Day, Another Deal: What to Watch from AbbVie, Allergan, Micron, Buffett
Wall Street woke up to another major deal. Here's what to watch from AbbVie's acquistion of Allergan, Warren Buffett's Kraft comments and Micron earnings after the bell.
Micron Reports Earnings on Tuesday: 7 Important Things to Watch
With few expecting Micron to report strong quarterly numbers, its commentary about second-half demand and pricing trends could have a big impact on how its shares move post-earnings.
Proofpoint, Square and Upland Are Tech Companies With an Upbeat Outlook
Several small- and mid-cap tech stocks are showing an upbeat outlook, with strong ratings and excellent upside potential.