Shares of Apple, which generates about a quarter of its sales in China, tumbled nearly 4 percent on Friday as investors worried about the outlook for the iPhone's amid intensifying concerns around China's growth prospects.
"Apple gets about 25 percent of its revenues from China and there's been increasing unease about the overall Chinese economy, said Toni Sacconaghi, technology analyst at Sanford C. Bernstein.
"We've seen other premium goods manufacturers starting to report weakness in China [and] I think investors are starting to extrapolate that."
That combined with the fact that Apple recently came off of a "tremendous iPhone 6 cycle" (iPhone sales will be up about 67 percent this year) has created worries that the tech giant's sales could contract next year.
"If iPhone units are down, the stock could continue to tread water and underperform relative to the market in the near term," Sacconaghi said. The company's iPhone business accounts for about 70 percent of its profits.
Apple shares are down more than 19.7 percent from the stock's 52-week high, virtually in "correction" territory (which happens when a stock is between 10 and 20 percent off the year's high).
New products like Watch of Apple Music haven't achieved wide success as of yet.
Those products aren't critical to Apple's bottom line right now, but the "absence of success is material" and investors would feel a lot better if they saw the potential for another big business on the horizon, according to Sacconaghi.
"We're not seeing evidence of that yet, certainly [not] from music and the watch," he said, adding that it may be a few years before the functionality of the watch improves enough to turn it into a mass market device.