Apple shares suffered their worst day since January 2013 yesterday, declining almost 10 percent in a single day. Since its valuation peak of $1.1 trillion in 2018, Apple has lost approximately $450 billion of its market cap.
Having been the world’s most valuable public company, Apple now sits behind Microsoft, Amazon and Google parent company Alphabet among the top-valued tech giants.
The decline follows Tim Cook acknowledging that Apple would miss its own earnings guidance for the first time in years. In a Wednesday note to investors, Cook said that Apple would bring in around $84 billion for the three months leading up to the holidays. Apple’s previous guidance had placed its likely earnings between $89 and $93 billion.
It’s important not to panic, however. Interestingly, the last time Apple saw a similar share price decline it was after the 2012 holiday season. That quarter, Apple underperformed with the iPhone 5c and 5s. At the time, many analysts suggested Apple had fallen behind in the screen size war with Android “phablets.” Jump forward to the end of 2013, however, and Apple went on to release the iPhone 6 and 6 Plus, two of its most successful iPhones in history.