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San Francisco - Apple went for a harrowing stock market ride on Monday, plummeting on concerns about China's economy, then snapping back after a rare public reassurance by CEO Tim Cook.
The world's most valuable tech company saw billions of dollars in worth come and go as its share price dove out of the gate, climbed into positive territory hours later and then ended the formal trading day down 2.5% to $103.12.
Apple's market bruising came as the tech sector was battered by fears of what an economic slowdown in China would do to revenue and profit, in a tumultuous day for global markets.
Google and Facebook slid nearly 4%, while Amazon tumbled more than 6% and Netflix shed nearly 7%.
Microsoft lost more than 3% while Twitter, already reeling from growth concerns, dropped 2.7%.
"When China gets a cold, the entire tech market gets a fever," said independent analyst Rob Enderle of Enderle Group.
Stock price slump
Cook said Apple is still seeing "strong growth" in China despite fears which have sparked a global market rout.
Cook responded to a query from CNBC about the sharp drop in Apple shares amid the market upheaval in China and around the world.
"As you know, we don't give mid-quarter updates and we rarely comment on moves in Apple stock," Cook wrote to CNBC's Jim Cramer in an email released by the cable channel. "But I know your question is on the minds of many investors."
Cook noted that he gets updates daily on Apple activity in China "including this morning, and I can tell you that we have continued to experience strong growth for our business in China through July and August".
He said that "growth in iPhone activations has actually accelerated over the past few weeks, and we have had the best performance of the year for the App Store in China during the last two weeks".
Cook added: "Obviously I can't predict the future, but our performance so far this quarter is reassuring. Additionally, I continue to believe that China represents an unprecedented opportunity over the long term."
Apple stock has slumped more that 20% from its peak earlier this year at $133.
Favourable conditions
Analysts interviewed by AFP felt that Apple would keep its footing in China despite economic conditions there.
Cantor Fitzgerald said in a note to investors that it felt China worries weighing on Apple shares were "way overblown".
The research firm reasoned that conditions in Apple's favour in China included the rise of the middle class; expansion of 4G mobile telecommunications networks, and the California company's expansion across the country.
"Apple is a status luxury brand and status is big in the China market; they will give up a lot things before they give up buying iPhones," said Enderle.
