Pandora's shares fall due to Apple's new radio service

Pandora's shares fell on Monday after Apple reported a strong response to its new radio service. Apple said on Monday that more than 11 million listeners have already tuned in to its iTunes Radio service in the first few days since its debut.

The music service comes with new iPhones and the free iOS 7 mobile operating system update, both of which hit the market on Friday. Apple already had significant reach through its brand popularity. The company said on Monday that shoppers snapped up 9 million of its newest iPhones and that demand exceeded supply. Any users of existing iPhones who updated their operating system since then will also have access to the music service.

Pandora share prices fall due to iTunes Radio's strong response

The analysts said the ultimate effect on Pandora is unclear. They don't know how long users are listening to iRadio, for example. But they expect that Apple's entry into streaming radio will cut Pandora's listening hours by 10 to 15 percent over the next four to six months.

Still, the analysts said that they are still optimistic about the company over the long term and believe in its new CEO, Brian McAndrews. Rohan and Purcell have a "Hold" rating on Pandora's stock. Shares, however, fell $2.70, a 10 percent, to $24.29 by late afternoon. Its stock has traded between $7.08 and $27.50 in the past 52 weeks.

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Associated Press