The drop came after The Wall Street Journal reported that the company has cut its orders for iPhone 5 components due to weaker-than-expected demand.
The newspaper says that two people it did not identify by name told it that Apple's first quarter orders for iPhone 5 screens have dropped to about half of what the company had previously planned to order.
It says one of the people told the newspaper that the Cupertino, Calif., company has also cut orders for components other than screens.
Apple shares dipped as low as $498.51 early in the session before climbing back to $505.14 later in the morning.
(Copyright 2013 by The Associated Press. All Rights Reserved.)