Apple slides into a bear market — now down 20% from its all-time high

  • Apple slid into a bear market Wednesday, down 20% from its October peak.
  • In August, the tech giant became the first US company with a $1 trillion valuation.
  • Shares have been hit hard after the company reported underwhelming iPhone sales and suppliers warned of a slowdown in the smartphone market.
  • Watch Apple trade live.

Apple slid into a bear market Wednesday, down 20% from its October peak.

The tech giant in August became the first US company with a $1 trillion valuation. It saw its market value top out at $1.12 trillion in early October, before a stock-market sell-off ravaged the tech sector.

13 PHOTOS
Twitter reactions to the new Apple MacBook Air and iPad Pro
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Twitter reactions to the new Apple MacBook Air and iPad Pro
new MacBook Air is pretty light, sharp screen https://t.co/Dp9kxwwNAT
new iPad Pro is super light and has quite pointed edges https://t.co/z4epUD5qYV
and here’s @fromedome comparing it to an older MacBook https://t.co/Ys7j9yQbJP
When you find out how much the new #MacBookAir costs. #AppleEvent https://t.co/U1LWS5uSts
The MacBook Air is back It has a 13” Retina display, slimmer bezels and a couple colors. 8th gen Intel CPU. Up to… https://t.co/bv7bDrdZJl
Here are all the MacBook Air’s specs: #AppleEvent  https://t.co/xfQAQgcwmO
#AppleEvent MacBook air updates https://t.co/GtZz6wyKLc
The wait was totally worth it, @apple #ipadpro2018 #MacBookAir https://t.co/MfrifU1RSB
BOOM!!! New #MacBookAir with Retina Display + Touch ID + Hey Siri! 😍 #AppleEvent https://t.co/YQ56UyKJdw
Both the #MacbookAir and #Macmini are made from 100% Recycled Aluminum. Big thumbs up 👍🏽 #AppleEvent https://t.co/FgV9xQJM06
To explain. No. No. There is to much. To sum up. New MacBook Air. New Mac Mini. New Today at Apple sessions.… https://t.co/42SiOtiuxl
The only thing that will feel like #Air is your Wallet if you purchase a maxed out Macbook Air #AppleEvent https://t.co/c1ZgwCwMdz
New MacBook Air is $200 more expensive. New iPad Pro is $150 more expensive. New Mac mini is $300 more expensive.… https://t.co/gRZHJ6Jm8K
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In November, Apple reported underwhelming iPhone sales and said its holiday quarter would be on the low end of expectations. It also said it would stop reporting unit sales for iPhones, iPads, and Macs.

But that was just the start of the recent worries for Apple shareholders. Earlier this week, a handful of Apple suppliers cut their outlooks, suggesting weaker smartphone demand ahead.

On Monday, Lumentum, the main supplier of the Face ID technology in Apple's latest generation of iPhones, cut its outlook after one of its biggest customers — it did not say which — reduced a shipment request. Then, on Tuesday, Qorvo, an iPhone radio-frequency chip supplier, lowered its guidance over what it said was a drop in demand for flagship smartphones. A handful of other iPhone suppliers, such as the screen maker Japan Display and the British chipmaker IQE, also slashed their forecasts this week. None of the companies specifically named Apple as the culprit.

Analysts up and down Wall Street have been downgrading the stock and cutting their price targets in response to the recent developments.

"We see growing risk of even softer iPhone unit demand, with downside in China, India and other emerging markets, where Apple may need to start considering lower price points," the Guggenheim analyst Mark Cihra said in a note sent out to clients on Wednesday. He downgraded Apple to "neutral" and removed his prior $245 price target.

That followed similar comments out Tuesday from Goldman Sachs, which said "end demand for new iPhone models is deteriorating."

Apple was up 13.6% this year through Tuesday.

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