A weak report Thursday on US manufacturing also weighed on the market.
The warning, which came after trading in NY closed on Wednesday, looked likely to rattle already-volatile stock markets when they reopen on Thursday - with stock index futures pointing to Wall Street falls. Not for the $1,100 price tag, mind you, but rather the ungrateful carriers who weren't willing to torch their share of the profits and consumers who wanted to fix their suddenly dying batteries.
But Hong Kong's Hang Seng jumped 1.4 per cent to 25,409.76.
In Asia, some traders cheered a private survey showing that China's services sector expanded in December.
"In fact, most of our revenue shortfall to our guidance, and over 100 percent of our year-over-year worldwide revenue decline, occurred in Greater China across iPhone, Mac and iPad", Cook said in the letter. Cook blamed the macroeconomy and U.S.
A Chinese court has also issued a preliminary injunction banning some Apple phones, part of a legal battle with chip maker Qualcomm Inc.
"The question for investors will be the extent to which Apple's aggressive pricing has exacerbated this situation and what this means for the company's longer-term pricing power within its iPhone franchise", said James Cordwell, an analyst at Atlantic Equities. He didn't mention that Apple had priced its new models at stratospheric levels. Copper, which is used in construction and wiring, fell 2.1 percent to $2.57 a pound.
Technology stocks led the declines with chipmakers and other phone part suppliers both in the USA and around the world in the red.
Airlines were also falling sharply after Delta trimmed its revenue forecast. It was down as much as 677 earlier.
Apple kicked in the New Year by revealing that sales of the company's flagship iPhone are slowing, resulting in the company revising its first quarter 2019 revenue guidance to $84 billion instead of the $89 billion and $93 billion it projected just a few months ago.
President Donald Trump is chiming in on Apple's sales warning earlier this week, which led the company's stock to drop. Skyworks Solutions fell 7.7 percent and Qorvo gave up 8.3 percent. It was last down 606 points, or 2.6%, at 22,739.44 where it was on track for the lowest settlement since Christmas Eve. Even Apple's iPhone XR, which was supposed to be a lower-cost alternative to the high-end iPhones, costs about 1,000 yuan more than a competing device.
Apple shares traded as low as 142.81 dollars apiece, or almost 10 percent lower on Thursday, registering a 52-week low.
The announcement, made in a letter from Cook to investors, comes after weeks of signals from inside Apple and its supply chain indicating the Cupertino, California-based company is struggling to sell the latest iPhones released in September.