Apple is now at risk of losing its position as the most valuable U.S. company, after the Cupertino based company’s stock dropped over 12% today in reaction to an earnings report that fell far short of investor expectations.

The Wall Street Journal reported the cause for investor backlash was reduced revenue projections for the current quarter ending in March. And at the heart of Apple’s lowered outlook is underwhelming device sales, as the company reported sales of 47.8 million iPhones- well below the 50 million units many analysts expected.

Earlier this month, Javelin released its Ten Trends for Financial Services in 2013 report, including a trend relevant to today’s events: “Apple will be dethroned.” Apple’s iPhone 5 is not particularly inventive-it didn’t have that “wow” factor that past models claimed and its release was overshadowed by its problems with Apple Maps. It used to be that iPhone was the gold standard of comparison. After all, when is the last time you heard anyone refer to a new phone as an iPhone killer?

Many phones now offer comparable hardware specs to the iPhone. While Android took the lead in U.S. smartphone and tablet marketshare in 2012, Apple took only modest gains in smartphone marketshare and lost ground in tablets. In the face of increasingly competitive and dynamic smartphone and tablet ecosystems, Apple will have to once again live up to its track record of device innovation in order to get consumers and investors back on their side.