By Tim Parker

Apple (AAPL) finished Monday's trading session down 3.57% to close at $501.75 after briefly breaking below the $500 mark -- something the stock hasn't done since February 16, 2012. The sharp drop on Monday stemmed from news that Apple had cut orders from its iPhone suppliers (by as much as 50%) on the back of slower than expected demand.

Later in the day, several bullish Apple analysts defended the company, characterizing the information as old news. However, that did little to quell investor concern that Apple may be losing more market share than previously thought.

Apple might be the headline stock, but when it has a bad day, the company often takes its suppliers down with it. Monday was no exception.

Share of Cirrus Logic (CRUS) tumbled 9.37% to close at $28.62. Cirrus manufactures chips for the iPhone, with 60% of the company's business tied to Apple. The company expanded its product offering but still remains focused on Apple.

Although Cirrus and Apple have nearly identical beta, 0.92 and 0.93 respectively, laying a one-year chart of Apple over a one-year chart of Cirrus reveals that the two companies move largely in tandem. Likely due to investor fears of the company's reliance on Apple, Cirrus is much more volatile. Cirrus was down another 2% Tuesday morning.

LG Display Company (LPL) was down 2.5% Monday to close at $13.59. LG manufactures displays for Apple products along with Sharp (SHCAY). The India Times reported Tuesday that screen manufacturers are cutting back production by as 40% to 80%. Apple reportedly ordered 65 million screens for January to March delivery before making the cut.

LG not only provides screens for mobile devices, the company sells to manufacturers of laptop and tablet computers, GPS devices and automobiles. The diversified nature of the company allows it to weather Apple's troubles, but that does not make it immune to the Apple effect. LG was down as much as 3.5% in morning trading Tuesday.

Qualcomm (QCOM) was down 1% to settle at $64.24 Monday. In morning trading Tuesday, the stock fell an additional 0.50%. The company makes the 4G modem for the iPhone but unlike Cirrus, Qualcomm is not nearly as levered to Apple. Most of the major manufacturers use Qualcomm technology in their phones, making shifts in market share largely immaterial to the company.

The chart confirms this. In the past year, Qualcomm has traded in a 20% range versus Apple's 63% range. Apple has shown much larger volatility in a sector known for being a swing trader's dream.

More from Benzinga

• Gun Sales Skyrocket on Fears of Regulation
• S&P Constructive on Junk Bond ETFs
• Can Honda Really Double its Annual Sales?