Is Apple fading or just getting ready for the next big thing?

(KTVU) - In one day, the stock market relieved Apple shareholders of 10 percent of their stock's value, dragging almost all of the financial markets, worldwide, down with it. For the world's first trillion-dollar company that's sitting on $130 billion in cash, playing "taps" is way, way premature.

Since October third, when Apple shares hit their high, 39 percent of their value has evaporated. The key reason: Weak demand for the expensive iPhones, in, of all places, China. 

But other issues, in some way, make Apple a victim of its own success. “We no longer have a pent up demand for new iPhones and we've got market saturation. We've got economic issues in China. We've got the trade wars. We've got the fact that Apple comes out with good products but they're not revolutionary relative to the old ones. 

“We even have the issue of batteries being so cheap last year, because of that $29 replacement program, that took away a major nice tie to buy a new phone," said long time tech analyst Larry Magid.

Truly revolutionary new products have been lacking for a long time. "So, it's essentially a one product company. The iPhone is repressible for the majority of its revenue," said Magid. 

The cheapest iPhone is $750 which is way more, sometimes double, than a lot of competitor’s higher end models. "But Apple is smart enough to navigate past this," said worldwide tech consultant Tim Bajarin, founder of Silicon Valley's Creative Strategies. 

"They just set records for services. They had strong demand for the Apple Watch; they couldn't actually fill the orders. They had strong demand for the new iPad. They couldn't fill those orders," said Bajarin. 

Nonetheless, Apple built its reputation on technical disruption and revolution. "We would like to see something new and I actually think they have something in the works for this," said Bajarin. 

Hint: A wearable device, a la Google Glass, that augments what you see with additional information and explanation.  "Apple has always rebounded. I think that will be the case again," said Bajarin. 

"I would not bet against Apple, because Apple is a strong company. They are still profitable. They have a lot of cash and they've got very smart people," said Magid

And, with all that cash, Apple could easily buy market leaders in other high tech industries such as cars or entertainment. "So they would be smart to look at a Tesla, to think about some of the apps that are really blockbuster apps or some company that's making hardware that everybody loves," said Magid.

Apple has two more huge campuses going up in the South Bay and another in Texas.