'Apple has slashed its estimated revenue for the first quarter after the tech giant saw 'fewer iPhone upgrades' than it expected.
In a letter to investors, CEO Tim Cook outlined why Apple was forced to lower its projected revenue to $84 billion - down from a range of $89 billion to $93 billion it called out in its previous earnings release in November.
Cook cited economic weakness in China as one of the primary reasons behind the iPhone slowdown.
Other factors impacting the revised guidance were difficult comparisons due to Apple's latest smartphone launches, as well as supply constraints, according to Cook.
Shares of Apple plunged minutes after a halt on the stock was removed, with the stock sliding 7.5 percent to $146.23 in after-hours trading.
The stock's plunge managed to wipe $55 billion off of Apple's value, based on the company's market cap at the end of Tuesday trading.
The revised guidance is a rare move for Apple, one that it hasn't made since more than a decade ago in 2002, experts noted.
'Today we are revising our guidance for Apple’s fiscal 2019 first quarter, which ended on December 29,' Cook explained.
'...Our revenue will be lower than our original guidance for the quarter, with other items remaining broadly in line with our guidance.
'While it will be a number of weeks before we complete and report our final results, we wanted to get some preliminary information to you now. Our final results may differ somewhat from these preliminary estimates.'
Aside from its lowered revenue guidance, Apple reduced its gross margin to 38 percent, down from its previous outlook of between 38 percent and 38.5 percent.'
Read more: Apple plummets $55 BILLION in value after firm is forced to slash its revenue predictions as Tim Cook admits there were 'fewer iPhone upgrades' than expected
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