Apple Tumbles on Consumer Spending Concerns

Apple shares took a 16% nose dive today, the largest drop in seven years, amid concerns Apple and other consumer electronics will suffer as the economy slows.

Two brokerages cut their price targets, earnings forecasts and stock recommendations on the company, which also makes iPod music players and iPhones. "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," said Morgan Stanley analyst Kathryn Huberty.

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