Showing posts with label After. Show all posts
Showing posts with label After. Show all posts

2013/02/04

After Aaron, Reputation Metrics Startups Aim To Disrupt The Scientific Journal Industry

Editor’s note: Richard Price is founder and CEO of Academia.edu, a platform for academics to share research papers. You can follow Richard on Twitter @richardprice100.

Aaron Swartz was determined to free up access to academic articles. He perceived an injustice in which scientific research lies behind expensive paywalls despite being funded by the taxpayer. The taxpayer ends up paying twice for the same research: once to fund it and a second time to read it.

The heart of the problem lies in the reputation system, which encourages scientists to put their work behind paywalls. The way out of this mess is to build new reputation metrics. The changes to reputation metrics in science that are underway are reflective of how reputation is measured online: Twitter has followers and retweets; GitHub has followers and forks; StackOverflow has reputation; Facebook has likes and comments; YouTube has view counts. An ecosystem of startups is working on building these new reputation metrics in science, including my startup Academia.edu, as well as Mendeley and ResearchGate (other important players in the space are PLoS and Google Scholar). All three platforms have passed 2 million users and are growing fast. In three to four years, all the world’s scientists will be on one or all of these platforms.

Scientists need to build their reputations, and the primary reputation metric in science is being published in prestigious journals, such as Nature, Science, and The Lancet. When scientists apply for a grant or a job, they know that there are 200 other people applying for the same grant, and that the grant committee scans resumes looking for such journal titles.

Journal publishers use their ownership of the reputation system to their advantage. When a scientist is looking to be published, they require a scientist to transfer the copyright of their paper. In this transaction, the scientists who wrote the paper are not paid and receive no royalties from the revenues from the paywalls. The peer reviewers who review the paper for the journal are not paid, nor are the taxpayers who have provided between $20K and $160K for the funding of the research behind the paper.

Because of its ownership of the reputation system in science, the journal industry is able to acquire the copyright to the world’s peer-reviewed scientific output for free. It then charges the public who funded the research — and the scientific community who authored and peer-reviewed it — $8 billion a year to access it. Effectively, the scientific community provides the product to the journal industry (the papers and the peer reviews), and then has to pay, along with the public, to get it back.

The tragedy of the commons is that individually rational decisions, namely scientists handing over the copyright of their papers to collect reputation metrics, lead to an outcome that is bad for the public at large: Because of paywalls, the majority of the world ends up being unable to access the scientific literature that it has funded.

To break out of the tragedy of the commons, new reputation metrics, developed by a number of startups, have been developed that incentivize scientists to share their research openly, rather than incentivizing them to put their research behind a paywall. Scientists are adopting them to better stand out from the crowd when applying for jobs. Examples of these new reputation metrics include inbound citation counts, readership metrics and follower counts.

Inbound citation metrics. A few years ago, Google Scholar started displaying inbound citation counts for papers – counts of how often a given paper was cited by other papers. Scientists have started to see these inbound citation counts as a way to demonstrate the impact of their work, and are increasingly including them in their job and grant applications. In some fields, such as physics, scientists are more proud of their inbound citation counts than they are of the journal titles on their resume.

Readership metrics. Academia.edu, Mendeley and ResearchGate are helping scientists to understand readership metrics around their research. These sites tell academics how many people are reading their work, as well as some demographic data about those readers. Increasingly these readership metrics are helping to influence hiring decisions by tenure committees.

Follower counts. Scientists are increasingly wanting direct, unmediated relationships with their audiences. Twitter, Facebook and other sites have put content creators directly in touch with their audiences. Scientists are saying ‘I want that direct relationship with my audience too!’ The personal brands of scientists are starting to eclipse those of journals, and follower counts help a scientist understand the growth of their personal brand.

In the pre-web era, scientists used to print out papers and read them in their labs in non-trackable ways. Increasingly scientists are reading and sharing papers online. The reputation metrics described above are derived from this online activity; two others that will emerge include:

Commenting metrics: As scientists increasingly comment on papers online, metrics will emerge to reflect the most discussed papers.Recommendation metrics: As scientists increasingly share paper recommendations online, metrics will emerge to reflect the most shared/recommended papers.

To distinguish between mere popularity and genuine impact, these metrics will take into account the reputation of the scientists doing the commenting/recommending. The metrics will be recursive in the way that Google’s PageRank algorithm looks at the quality of the linking site and not just the quantity of them.

As I mentioned, the journal title has historically accounted for close to 100 percent of a scientist’s public reputation. That figure is probably now at 90 percent, with 10 percent for the new reputation metrics mentioned above. As new reputation metrics emerge, the journal title will decline in relative significance. Soon we will get to a point where the journal title contributes less than 10 percent of a scientist’s reputation, and the bulk of the scientist’s reputation metrics are coming from other sources.

The costs of publishing a paper via a journal are significant, both in impact and money. Journals take a long time to publish research. There is an average time lag of 12 months between submitting a paper to a journal, and the journal publishing it. This is 12 months of lost impact for the scientist.

Journals mostly put papers behind paywalls, which further limits the audience and impact of the paper. Some journals now make the paper accessible to readers for free, but the author typically has to pay $1,000-$3,000 to remove the paywall around their research.

Increasingly it will be seen as perverse to submit a paper to a journal and wait 12 months for comments from two scientists, instead of sharing it on a platform like Academia.edu and getting comments from hundreds of scientists in two weeks.

The first journals to disappear will be the ones whose titles offer the least reputation boost – the second- and third-tier journals. Shortly afterwards, Nature, Science and the top-tier journals will disappear. Scientists will be sharing their work on multiple platforms, and their reputations will be based on a constellation of metrics. And as journals lose their significance, the dream of open access will be realized: a villager in India will have the same access to the world’s scientific literature as a professor at Harvard.

In addition to incentivizing scientists to share their work openly, new reputation metrics will also play a role in changing science in a number of ways:

Better peer review. Right now the peer-review system takes 12 months to complete, and surfaces the opinions of only two scientists – scientists who may be biased, uninformed about the subject matter, or just in a bad mood when writing the review. Reputation metrics will bring about a system where opinions are surfaced from the entire scientific community, and in real time. A mathematician who sees an incorrect theorem in a paper they are reading will be racing to get their refutation out by 6 p.m. in order to collect the glory and the reputation metrics that will follow from that insight.

Instant distribution. Reputation metrics will incentivize scientists to share their work instantly, rather than let their work be held back in 12-month publication time lags.

Data sets and other content formats. Historically, papers are shared because the journal title has been the only reputation metric, and journals only publish papers. Journals don’t publish data sets, code, videos, and other aspects of a scientist’s output. Seventy-five percent of the world’s scientific data isn’t shared because the incentives aren’t there for scientists to share it. New reputation metrics will provide those incentives.

Platforms like Facebook, Twitter, YouTube, and others don’t charge users to share or consume content. The costs of the platforms are low enough for them to be able to monetize via ancillary services such as advertising.

We are moving towards a science where scientists and the general public will not be paying to share and consume research. The business models that will emerge in science will be as diverse as the ones on the web at large. There will be advertising businesses; freemium models; and enterprise sales models.

$1 trillion a year is spent on R&D, and as scientific activity moves online and becomes trackable, it is going to be possible to build tools that help that R&D capital be better spent more efficiently.

Every innovation in medicine and technology in the world has its roots in a science paper, and speeding up science will change the rate of innovation. The startups looking to help facilitate this, such as those mentioned above and Science Exchange, Figshare, Microryza, Quartzy, Altmetric and ImpactStory, are engineering-driven and need engineers and designers to aid in the effort. If you are interested in joining, there is a list of startups looking to accelerate science here.

[Richard recently appeared on "In The Studio" with TechCrunch's Semil Shah. Watch him discuss Academia.edu and his plan to help scientists break out of the tragedy of the commons.]


Academia.edu is a platform for academics to share research papers. The company’s mission is to accelerate the world’s research. Academics use Academia.edu to share their research, monitor deep analytics around the impact of their research, and track the research of academics they follow.

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Mendeley helps to manage and share academic knowledge: Mendeley Desktop is free academic software (Windows, Mac, Linux) for managing and sharing research papers. Mendeley Web is a free research network which lets you manage research papers online, discover research trends and connect to like-minded academics. Mendeley has won Plugg.eu’s “European Start-up of the Year” Award 2009 and TechCrunch Europas “Best Social Innovation Which Benefits Society” Award 2009. The company’s investors and advisors include former founders and executives of Skype,...

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ResearchGate is the leading social network for scientists. It offers tools and applications for researchers to interact and collaborate. ResearchGate offers a social, crowdsourced platform designed for researchers. The platform provides a global scientific web-based environment in which scientists can interact, exchange knowledge and collaborate with researchers of different fields. The results of ResearchGate’s new search engine, called ReFind, are not merely based on keywords, but selected in an intelligent way based on semantic, contextual correlations.

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Science Exchange is an online marketplace for scientific experiments. Outsourcing has the potential to transform science in the same that it transformed IT/tech. Science Exchange makes outsourcing science experiments easy by matching research scientists looking to outsource experiments with other scientists interested in performing those experiments (initially from core facilities and contract research organizations). Science Exchange helps research scientists manage outsourced experiments and deals with all the paying/billing administration, quality assurance and dispute resolution.

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figshare allows researchers to publish all of their research outputs in seconds in an easily citable, sharable and discoverable manner. All file formats can be published, including videos and datasets that are often demoted to the supplemental materials section in current publishing models. By opening up the peer review process, researchers can easily publish null results, avoiding the file drawer effect and helping to make scientific research more efficient. figshare uses creative commons licensing to allow frictionless sharing of...

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Quartzy is an online suite of lab management tools for the academic life science community.

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Maybe Those Chromebooks Weren’t Such A Crazy Idea After All

When Google launched its Linux-based Chrome OS in early 2010 and its Chromebook pilot program later that year, most pundits didn’t quite agree with our own MG Siegler’s premise that Google had dropped a “nuclear bomb on Microsoft.” A few years later, it sure doesn’t look like Microsoft has much to fear from Chrome OS. But despite its slow start, it looks as if the Chrome OS momentum is slowly picking up.

Google has traditionally been very quiet about Chromebook sales and mostly focused on very large enterprise and educational installs. That’s clearly also the target market for the Chrome OS ecosystem right now, but when Acer says that its $199 C7 Chromebook now accounts for 5-10 percent of its U.S. shipments, it’s clear that some of those devices must have gone to regular users, too.

Acer is obviously playing the value game with its $199 Wi-Fi-only device. Samsung, too, offers a $249 Chromebook and a more fully featured $449 version. Both of these companies partnered with Google from the early days of the Chromebook program. Now, however, Lenovo is also getting in the game with its $429 ThinkPad X131e Chromebook, which will go on sale later this month. It’s unlikely that Lenovo would enter this market if it didn’t see some momentum for Chromebooks, too.

Features of ChromebooksAt the low end, price obviously makes these Chromebooks attractive laptop alternatives, especially given that even these affordable devices don’t actually feel all that cheap compared to the usual Windows laptops that tend to start at around $400. Since Google switched to a more traditional window management system last year, the whole experience of using Chrome OS must also feel a lot more comfortable for a lot of users who were previously turned off by the Chrome-only look.

Still, with over 2,000 schools now using Chromebooks, the real market for these devices sure seems to be in the education space. Over the last year or so, I’ve heard from a number of educators that they prefer to use Chromebooks with their students than an iPad (their students probably think the exact opposite…). Not only are they obviously cheaper and come with service contracts and management consoles for administrators, but having a full keyboard and larger screen clearly make them attractive devices in the view of many teachers and school administrators. The fact that the devices auto-update regularly and are pretty much safe from viruses also makes for an attractive selling point when compared to traditional laptops. For Google, of course, this also means many of these kids will grow up in the Google ecosystem of Gmail and Google Drive, which surely isn’t going to hurt it once these students go on to college or get jobs.

bagofappsWhen Google launched Chrome OS, it was probably a bit ahead of its time. At the launch event, Google said it wanted “to rethink the personal computing experience for the web,” but Wi-Fi and 3G/4G connections weren’t all that ubiquitous back then and still aren’t today, so Google started to add more offline features and file-management capabilities to Chrome OS, as well as larger hard drives to its Chromebooks. Web apps weren’t all that powerful back in 2010 yet, either, but now, thanks to the power of HTML5, there isn’t really all that much you still need a traditional desktop for.

Google is clearly in this for the long haul. It won’t challenge the market shares of Windows and OS X on the laptop anytime soon, but it sure has developed into an interesting platform over the last two years. And maybe Google’s idea to couple its browser with Linux and a pared-down laptop wasn’t so crazy after all.


Launch Date: September 7, 1998

Google provides search and advertising services, which together aim to organize and monetize the world’s information. In addition to its dominant search engine, it offers a plethora of online tools and platforms including: Gmail, Maps, YouTube, and Google+, the company’s extension into the social space. Most of its Web-based products are free, funded by Google’s highly integrated online advertising platforms AdWords and AdSense. Google promotes the idea that advertising should be highly targeted and relevant to users thus providing...

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2013/01/21

After 170 Million Downloads, Temple Run’s Sequel Is Finally Here

Imangi StudioA screenshot of “Temple Run 2.”

“Temple Run,” a free-to-play game built by a small shop of three developers, is often viewed as a major success story for the Apple App Store.

The game has generated “millions” in revenue from in-app purchases, has been downloaded more than 170 million times and has more than 15 million players accessing the game every day, said Keith Shepherd, co-founder of the game’s publisher, Imangi.

Now Imagni is trying to replicate that success with a sequel to the game coming out today. Of course, a sequel doesn’t always guarantee success — look at “FarmVille 2,” a rebuilt game that has fewer than 10 million players every day, but well below that of its low-tech predecessor “FarmVille.”

There are some new tricks for the game. The controls are the same, but new obstacles like ziplines and mine tracks introduce challenges players haven’t seen before. There are new characters with different special abilities.

But the core of the game is still the same. It’s designed to feel familiar, but have enough new content to attract new players. It also sports a significant lift when it comes to graphics and environments.

The iPhone version is available today, with Android and Amazon versions planned for release next week. We caught up with Natalia Luckyanova and Shepherd to find out more. Here’s an edited transcript of the interview:

WSJ: Can you give us a quick background for Imangi?

Natalia Luckyanova: We started the studio in 2008, right when the App Store launched. We worked for other companies as software engineers before that. Our first game that could be considered a hit was “Harbor Master,” that came out in 2009. “Temple Run” came out in the summer of 2011 and that was obviously a hit, with over 170 million downloads. Then we did some updates and merchandising, and we started on “Temple Run 2.”

WSJ: How did you settle on making a sequel?

Keith Shepherd: We started working on the second one this past March. When we built “Temple Run 1” there were three of us that worked on it. Natalia does the music and sound effects and design. We worked with an artist for the original, which took five months. When we started making the sequel we were trying to build a bigger, better, more awesome version than the first. We’re still a relatively small studio, but we knew we were going to need some more help than just the three of us. We collaborated with two of our really good friends who are also indie developers, Fuzzy Cube — an artist and a programmer. The five of us altogether worked on the sequel.

WSJ: What’s different about the new game?

KS: Our main goal was to provide something that felt familiar. You immediately know how to play. You’re still running down this endless path, swiping to jump and turn and tilting.

I think the biggest difference is that you’re running in a new world. It’s much richer and vibrant. We leveled up on all of the art to make it look like a more compelling environment. We have gentle curves and hills and valleys. The first one is more rigid with only straight lines and lefts and rights. There wasn’t much organic curviness.

We have these ziplines — you’re running down a path and have to grab a zipline. It has the same gestures but you’re performing a new mechanic and a new action. You tilt to lean a mine cart left and right, and ducking down to avoid rafters. There’s more content there in the game. It may seem subtle on the surface, but it’s what our players asked for the most. Each character in “Temple Run 2” has a unique power, you can use those powers as you fill up your coin meter. It adds a a strategic element to how you want to use those power-ups.

WSJ: How many players are there for “Temple Run”?

NL: We have a total of about 15 million daily active users.

WSJ: Do you expect all those players to migrate to the new game?

NL: We’re not really sure what’s gonna happen, we’re kind of curious. “Temple Run 2” is a new update, but I think a lot of people will like the classic look and feel. We’re gonna wait and see how that shakes out.

KS: We’re not removing the original. I think people will play the one that they enjoy the most. Our hope is that we’ll get as many people playing the sequel as we had playing the original. Our plan is to keep them both updated and relevant.

WSJ: Is there enough to merit a sequel? “FarmVille 2” wasn’t as large as “FarmVille 1,” for example…

KS: I think that’s definitely a concern, we hope that we’ve added enough that “Temple Run 2” does feel like a completely new thing with a lot more to explore. We did the collaboration with Disney and Pixar and made “Temple Run: Brave,” it’s still up on the top of the charts on the paid side. (That app costs 99 cents.) That’s not necessarily a sequel, but it’s a version of “Temple Run” that people have grown to love. These things can co-exist. Our hope is that “Temple Run 2” can co-exist with those other two.

“Angry Birds” for instance has about 10 SKUs, almost the same thing but with different content and environments. Mobile games are kind of small chunks of content and having multiple SKUs is a way that you can give people more of what they love. We’re definitely not experts in this, and we’re kind of playing it by ear a little bit. It could happen that the original fades off or people love the original, and the sequel doesn’t work out. We’re okay with any of these things happening.

WSJ: What works better, licensing for different SKUs or a freemium model?

NL: The in-app purchases have definitely been the biggest part of the business. Everything else adds up. That is how we’re looking at it.

KS: We got our licensing program off the ground last year. It’s been interesting to watch with what “Angry Birds” has done with their brand. You can’t go anywhere without seeing it. It seems like there is a tremendous amount of opportunity there. It’s still too early for us to tell if that will turn out that way for us, but those are things we’re pursuing.

We’ve been working a branding agency to get “Temple Run” out there. We licensed the IP for a comic book series, arcade cabinets, board games, and a few of those things are starting to come out.

WSJ: How much revenue comes from in-app purchases?

KS: We’ve shied away from talking about revenue numbers for “Temple Run.” The stat we did eventually said was we’ve made millions of dollars. Freemium has really caught on as something that has resonated with players. Freemium games tend to make more revenue per download than an equivalent product.

People in the industry always talk about DAUs (daily active users) and ARPU (average revenue per user) and all these stats about monetizing users, and we’ve kind of shied away from tracking a lot of that stuff. We’re trying to build a sustainable business, but we’re small and we focus on the game design first.

If you compare a game like “Temple Run” to “The Walking Dead” or “FarmVille” games, some of them are super-optimized for monetization. They have staff guys where they are building a game with monetization in mind. We don’t have anyone on our team for which that’s their role.

WSJ: So no plans to raise money then?

KS: We’re self-funded. There’s definitely been interest from people reaching out to us. We still, to this day, get a lot of emails of people interested in acquiring us and wanting to invest in us. Natalia and I have always thought of this as a lifestyle business. We really enjoy the creative aspect of making the games, and we decided we want to keep things small instead of growing the company. We’d end up having to manage teams instead of getting to do the part of the business we love.

Sometimes we do wonder, maybe we should have grown the company, maybe that would be fun, but ultimately being small just suits us better.

WSJ: Does that seem like a trend among app developers — staying small and sticking to development?

NL: We have heard from a number of our friends that there haven’t been businesses in the past with a tiny team that brings in a lot of revenue. Now you can be independent, working out of your house, playing with your baby and bringing in the money that a big business would. We were thinking, what do we want out of our everyday life, and we would prefer to stay small and work with things we want.

We won’t bring int he revenue a Zynga would make off “Temple Run,” but at the same time we’re only supporting us and a few contractors instead of a few thousand employees.

KS: There have been a lot of companies that had games that got really big and sold out and have been dismantled. Our small studio can outlast those big studios. Our focus isn’t on the exit. We’re going to be around doing what we love for a long time instead of selling our company in the short term. I think it just fits our style. Our games have been well enough that it supports what we need to do and we can keep doing it.

2013/01/17

FAA grounds all US Boeing 787 Dreamliners after second lithium ion battery failure

FAA grounds all US Boeing 787 Dreamliners after second lithium ion battery failure data = {blogUrl: "www.engadget.com",v: 250};when = {jquery: lab.scriptBs("jquery"),plugins: lab.scriptBs("plugins"),eng: lab.scriptBs("eng")}; var s265prop9 = ('20431233' !== '') ? 'bsd:20431233' : ''; var postID = '20431233'; var modalMNo = '93319229', modalVideoMNo = '93320648', modalGalleryMNo = '93304207'; when.eng("eng.omni.init", {pfxID:"weg",pageName:document.title,server:"",channel:"us.engadget",pageType:"",linkInternalFilters:"javascript:,engadget.com,joystiq.com,massively.com,tuaw.com,switched.com,techcrunch.com",prop1:"Engadget",prop2:"",prop9:s265prop9,prop12:document.location,prop17:"",prop18:"",prop19:"",prop20:"",mmxgo: true,disablepipath:true,mmxtitle:"us.engadget" + " : "}); adSendTerms('1')adSetMOAT('1');adSetAdURL('/_uac/adpagem.html');lab._script("http://o.aolcdn.com/os/ads/adhesion/js/adhads-min.js").wait(function(){var floatingAd = new AdhesiveAd("10000057",{hideOnSwipe:true});}); EngadgetMenu ReviewsEventsPodcasts Engadget Show Buyers Guides FeaturesVideosGalleriesStoreTopicsHD Mobile Alt Announcements Cameras Cellphones Desktops Displays Gaming GPS Handhelds Home Entertainment Household Internet Laptops Meta Misc Networking Peripherals Podcasts Robots Portable Audio/Video Science Software Storage Tablets Transportation Wearables Wireless Acer Amazon AMD Apple ASUS AT&T Canon Dell Facebook Google HP HTC Intel Lenovo LG Microsoft Nikon Nintendo Nokia NVIDIA RIM Samsung Sony Sprint T-Mobile Verizon About UsSubscribeLike Engadget@engadgettip uswhen.eng("eng.nav.init")when.eng("eng.tips.init") FAA grounds all US Boeing 787 Dreamliners after second lithium ion battery failureByAlexis SantospostedJan 16th, 2013 at 6:36 PM 0

FAA grounds all US Boeing 787 Dreamliners after second lithium ion battery failure

Boeing's 787 Dreamliner began joining US airline fleets last year, but a fire started by the plane's lithium ion batteries last week put it on the docket for a review by the FAA. After a second mishap caused by the bird's batteries, the FAA is now requiring US airlines to temporarily ground all Dreamliners. In addition, the agency said it's given international aviation authorities a heads-up so they can take similar measures. According to the regulatory outfit, the battery failures could botch critical systems and structures, in addition to starting fires. In order to sort things out, the FAA says it'll work with Boeing on a plan that'll fix the issues and put the craft back in commission as "quickly and safely as possible." Hit the jump for the FAA's full statement.

Update: A United spokesman shared the following statement, confirming that passengers scheduled to fly on the Dreamliner will travel on other aircraft, instead:

"United will immediately comply with the Airworthiness Directive and will work closely with the FAA and Boeing on the technical review as we work toward restoring 787 service. We will begin re-accommodating customers on alternate aircraft."

As a result of an in-flight, Boeing 787 battery incident earlier today in Japan, the FAA will issue an emergency airworthiness directive (AD) to address a potential battery fire risk in the 787 and require operators to temporarily cease operations. Before further flight, operators of U.S.-registered, Boeing 787 aircraft must demonstrate to the Federal Aviation Administration (FAA) that the batteries are safe.

The FAA will work with the manufacturer and carriers to develop a corrective action plan to allow the U.S. 787 fleet to resume operations as quickly and safely as possible.

The in-flight Japanese battery incident followed an earlier 787 battery incident that occurred on the ground in Boston on January 7, 2013. The AD is prompted by this second incident involving a lithium ion battery. The battery failures resulted in release of flammable electrolytes, heat damage, and smoke on two Model 787 airplanes. The root cause of these failures is currently under investigation. These conditions, if not corrected, could result in damage to critical systems and structures, and the potential for fire in the electrical compartment.

Last Friday, the FAA announced a comprehensive review of the 787's critical systems with the possibility of further action pending new data and information. In addition to the continuing review of the aircraft's design, manufacture and assembly, the agency also will validate that 787 batteries and the battery system on the aircraft are in compliance with the special condition the agency issued as part of the aircraft's certification.

United Airlines is currently the only U.S. airline operating the 787, with six airplanes in service. When the FAA issues an airworthiness directive, it also alerts the international aviation community to the action so other civil aviation authorities can take parallel action to cover the fleets operating in their own countries.

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2013/01/16

Apple Briefly Falls Below $500 After Cutting Orders For iPhone Parts

AP Photo/Lee Jin-man

Apple shar es fell below $500 Monday for the fist time since Feburary after a report of weaker-than-expected iPhone demand deepened a pessimistic sentiment that’s dogged its stock for months.

The latest stock drop came as signs of weaker iPhone 5 sales during Apple’s January-March quarter prompted the Cupertino, Calif., company to cut orders for screens and other handset components, according to a Wall Street Journal report that cited people familiar with the situation.

Strong sales of Apple’s newest handset are considered key to maintaining growth for the world’s most valuable publicly traded company. Apple has diversified its product lineup with products like a lower-priced version of its iPad tablet, but iPhone remains its most profitable big-ticket device.

Apple shares hit a low of $498.51 shortly after the open, but the stock quickly rebounded above $500. Shares recently traded at $505.68, down 2.8% in brisk trading. The slide extends the stock’s nearly 30% decline since September, when bullish expectations surrounding the iPhone 5's launch propelled the stock above $700.

Shares of Apple’s suppliers took a hit, too. Chipmakers Qualcomm fell 1.3% to $64.08, while Cirrus Logic was off 5% at $30.01. Qualcomm makes wireless radio chips found in millions of handsets, including the iPhone 5. Cirrus, a producer of audio chips, makes more than half its revenue from Apple devices.

Suppliers Avago Technologies and Skyworks Solutions , which reportedly gained a bigger footprint in Apple’s supply chain with the iPhone’s newest design, fell 1% to $34.01 and 1.5% to $21.06, respectively.

Initial reports of the iPhone 5's launch ironically focused on limits to supplies, as Apple stores repeated their ritual of selling out initial iPhone 5 inventories within hours at some locations. Changes to the iPhone 5's design made it hard for some suppliers to keep up with initial demand, according to reports.

Apple is still expected to report it sold millions of iPhone 5s during the quarter that ended in December, though its current quarter is now in doubt. Sanford Bernstein analyst Alberto Moel said the company might have made particularly large iPhone 5 orders to suppliers for the October-December quarter because of earlier concerns about manufacturing difficulties.

The company is expected to report the results for its December quarter, the first of its fiscal year, on Jan. 23.