Exactly how bad is it to drop your phone, specifically an iPhone 5s?

I got an iPhone 5s a few days ago and I want to be Really careful with it. Sadly today I was holding my phone while walking to my car in a parking lot and I had a handful of stuff and it accidentally fell.

I have one of those shock protector cases and I keep it in one of those wallet-type things, so no external damages were done, but I really hope there were no internal damages.

So what exactly could happen to your phone if you drop it, and do you think my phone is okay?

Your phone is fine. The worst thing that could probably happen is the screen shatters. There really isn't much internal damage that could cause a problem. Just be careful if you have headphones in because dropping it could cause damage to the headphone socket.

No problem, Apple designed iPhones to live in a not so perfect world so dropping it won't be any issue. The only thing that could happen is a broken screen but you would be able to see that.