Apple Shares Slide on Market Jitters

Courtesy of Apple

Apple shares tumbled today, losing roughly 18 percent of their value from the opening price. While the entire market experienced profound volatility today, Apple's woes seem to be a reaction to the evaluation of two analysts: Mike Abramsky of RBC Capital and Kathryn Huberty of Morgan Stanley.

Abramsky change his outlook from 'Outperforms' to 'Sector Performs,' while Hubert change her outlook from 'Overweight’ to ‘Equal Weight.'

The reasons cited for the change seem to be more of an indictment of the overall economy than any insight into Apple's business. Both analysts appear to base their outlooks on the expected downturn in sales of electronics and computers during the upcoming holiday season, because of consumer concerns about the economy.

Put another way, 'essentials before luxuries' will be the consumer mantra in the upcoming holiday quarter.

What do you think?