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Morgan Stanley analyst Kathryn Huberty said that Apple will be particularly hard hit by the slowdown, as it will see PC spending shift to the lower-priced end of the market, where the Apple is not a major player. She cut her target price from $178 to $115.

“We worry that consensus estimates have not been revised down to reflect slowing global consumer demand,” she wrote in a note to investors.

RBC’s Mike Abramsky agreed, cutting his target from $200 to $140. Apple shares closed at $105.26, having opened at $119.62 and slipping to $100.59 at one stage.

Apple’s market value has now fallen more than 40% since early August, not helped by chief financial officer Peter Oppenheimer’s July warning that the company’s profit margins would be hit by “a future product transition”.

The Mac, iPod and iPhone maker was not alone in seeing significant falls, though it was the hardest hit. Google lost 7%, Dell 4% and Microsoft 2.3%. Rival smartphone manufacturers also suffered: BlackBerry maker RIM fell 6% and Palm 5%.