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Apple plunges 5% to break below $100 a share

Reem Nasr
Mike Segar | Reuters. The Justice Department is expected to withdraw from its legal action against Apple as soon as today.

Shares of tech giant Apple (AAPL) broke below $100 a share in premarket trading on Monday as a global sell-off in equities continued.

The company has become a benchmark not only for the technology sector, but also for confidence int he global economy. China is hugely important for Apple- the plunge in its share price could be mainly tied to the crisis of confidence in the global economy, especially in China.

Apple slide more than 7 percent before U.S. markets opened as Nasdaq futures (CME:Index and Options Market: @ND.1) were also down about 5 percent.

On Friday, shares tumbled nearly 4 percent as investors worried about the outlook for the iPhone as well as on concerns about China's economic health.

"If iPhone units are down, the stock could continue to tread water and underperform relative to the market in the near term," Toni Sacconaghi, technology analyst at Sanford C. Bernstein, told CNBC on Friday. The company's iPhone business accounts for about 70 percent of its profits.

"Apple gets about 25 percent of its revenues from China and there's been increasing unease about the overall Chinese economy," he said. "We've seen other premium goods manufacturers starting to report weakness in China [and] I think investors are starting to extrapolate that."

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-CNBC's Catherine Boyle and Karma Allen contributed to this report.



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