Shares of Apple closed down 5.23% on Monday, its worst day since May 13 when Apple closed down 5.81% on the day.

The Dow Jones Industrial Average plunged more than 900 points at its lows on Monday, led by Apple, after China let the yuan to fall to its lowest point against the dollar in more than a decade. The move is thought to be a response to the latest round of tariffs announced against China last week.

It was a bad day for Big Tech companies overall. Apple, Microsoft, Amazon, Alphabet and Facebook lost a combined $162 billion in market value Monday.

Last week, President Donald Trump announced tariffs of 10% on $300 billion worth of Chinese goods. The new tariffs will apply to, among other things, electronics used in products such as Apple's iPhone, iPad and Mac computers.

TF International Securities analyst Ming-Chi Kuo, regarded as one of the top Apple analysts, said Monday morning that the tariffs won't trickle down to increased iPhone prices for consumers, which means Apple is likely to eat the cost.

"The negative impact on Apple are limited and temporary because the profit from service business is growing, and non-Chinese production locations will gradually increase," Kuo said. "We believe that Apple's non-Chinese production locations could meet most of the demand from the U.S. market after two years."

Apple's iPhone revenues have slowed in recent years as consumers hold on to devices longer and, despite an increase in services revenue, iPhone sales still accounted for $25.99 billion of the company's total $53.8 billion revenue in fiscal Q3.

CNBC's Fred Imbert contributed to this report.

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