Correction or bear market? Apple may determine

Published Tue, Jan 19 20164:45 PM ESTUpdated Tue, Jan 19 20166:02 PM EST

With the market off to one of the worst starts to a year ever, the earnings season over the next few weeks takes on greater importance to steady the ship. One company will have an outsized influence on the overall profit picture for the S & P 500 and therefore could dictate whether this correction turns into a bear market. That company is Apple , which reports Jan. 26. Here's why. While the tech giant's shares make up a hefty 3.3 percent of the S & P 500's market value, its profits are an even bigger part of the benchmark's total earnings pie, accounting for more than 7 percent of fourth-quarter total operating earnings, according to S & P Dow Jones Indices' Howard Silverblatt. That's more than triple the next biggest company in terms of profit influence, Microsoft . If the market is depending on Apple's earnings to rebound, things aren't looking good. Several key of the company's suppliers pre-announced lower-than-expected sales in January, which may portend negative Apple financial results in the future. Analog Devices , an important component supplier for the iPhone, on Thursday revised lower revenue guidance for its quarter ending in January from its previous forecast of $805 million to $855 million to a new range of $745 million to $765 million. Read More Bear market battle plan: These trades still work The company blamed, "weaker than forecast customer demand in the company's portable consumer business unit, which began in December, and is expected to continue into the second fiscal quarter." Other key Apple iPhone suppliers such as Cirrus Logic and Qorvo warned of poor results in early January. It's not just the suppliers, a company that assembles Apple's products reported weak December sales. "Apple manufacturing partner, Hon Hai Precision, reported a 21 percent month-over-month decline in sales during December and well below the average increase of 3 percent over the past 10 years," Drexel Hamilton's Brian White wrote in a note to clients Jan. 8. Read More Santoli: Four things that could trigger a rebound The bull market may be in Apple's hands now and that shouldn't make investors feel any more confident about a rebound.

Workers prepare for the opening of an Apple store in China.

Chance Chan | Reuters

With the market off to one of the worst starts to a year ever, the earnings season over the next few weeks takes on greater importance to steady the ship.

One company will have an outsized influence on the overall profit picture for the and therefore could dictate whether this correction turns into a bear market.

That company is Apple, which reports Jan. 26.

Here's why.