He cites a number of reasons for the revised figures, including the timing of iPhone sales, the strength of the dollar, market saturation, and lower than expected numbers of iPhone upgrades - this being partly blamed on the high uptake of Apple's reduced-price battery upgrade program introduced a little over a year ago. The rather tenuous grip on counterfactual optimism that has powered markets for the last few unconnected days could be pretty well undone by a concrete example of fallout from a global trade war and massive selling on the stock of a company with a market cap of $750 billion. Former CFTC commissioner Bart Chilton, host of "Boom Bust" joins Steve Malzberg to share his insights.
According to Cook, the shortfall is "over 100 percent from iPhone and it's primarily in greater China".
Apple shares plummeted almost 10 percent on the news Thursday, with the company shedding some 38 percent since its valuation hit $1 trillion past year.
The news from Apple has already sent the value of the company plummeting by more than $55 billion, and as trading continues today, it is possible that it will drop further.
Some analysts point to Apple's dependence on iPhone sales to drive revenue and profits, even as it tries to diversify its product base and add services such as music and digital payments.
Twitter has met Apple's troubles with derision, with many pointing out that new models are massively overpriced while hardly being technological breakthroughs.
However, the company's woes in China have been exacerbated by a court decision that could potentially ban iPhone sales in the country.
Apple has revealed its takings are expected to be much lower than predicted during the crucial run up to Christmas, as demand for iPhones wanes.
"This is not a catastrophe nor is it a sign that Apple is losing its grip on the smartphone market but merely a misjudgment by Apple with regard to how much money people will pay for an iPhone".
Still, some local players managed to grow against the trend and they may be eating into Apple's market share. Analysts had been expecting revenues of around $91bn, according to market analyst FactSet.