Stocks of computer giant Apple were downgraded by two rating agencies on concerns that consumers were less likely to spend money on electronic gadgets in times of continuing economic slowdown.

On Monday, analysts from both RBC and Morgan Stanley slammed Apple with neutral ratings thus downgrading from buy, based on predictions that consumers would refrain from buying non-essential electronic products unless there was a significant increase in their disposable incomes. This is bad news for Apple since a decline in the sales of Mac notebooks and desktop computers would mean a slash in its growth rate.

Apple shares plunged by 16% in Monday’s morning trading as reports of downgrades hit the morale of the investors. This is an indication of how popular consumer devices can lose steam in a weakened economy. In recent times, Apple growth figures have not only been hampered by slowing PC sales but also by the fact that it has no product in the below-$1000 price range which is a market section that has seen comparatively less slow down.

Aftershocks of the finance market crisis are being felt across nearly all sectors and technology majors like Apple and Research in Motion too have seen their shares fall in the past month.