\n<\/p>\n
The company said the figures were distorted by Covid-related supply disruptions, which led to unusually strong sales during the same period last year. <\/p>\n
It pledged that sales would return to growth in the months ahead, noting upcoming product launches and investments in artificial intelligence (AI). <\/p>\n
For the iPhone, sales in the critical greater China market dropped by 8%. Mr Cook attempted to reassure investors about the state of the business in the world’s second largest economy, noting that iPhone sales were actually up in “mainland” China. <\/p>\n
“I maintain a great view of China in the long term,” he said. <\/p>\n
Competition in that market has been intensifying from local rivals such Huawei.<\/p>\n
Gil Luria, senior software analyst at DA Davidson, said companies such as Huawei do well in China because “it is the homegrown brand”.<\/p>\n
“But in terms of features, functionality and prestige, iPhone still has an advantage over any other handset,” he told the BBC’s Today programme.<\/p>\n
“So any time consumers get the choice and have the resources they\u2019re going to buy an iPhone \u2013 that\u2019s not any different in China.”<\/p>\n
Struggles at the company – which has endured a streak of sales declines for five of the last six quarters – marked a contrast with the wider market.<\/p>\n
Globally, smartphone shipments rose 10% in the first three months of the year, expanding after a long lacklustre period, according to research firm Canalys. <\/p>\n
Mr Luria said that for Apple, there hasn’t been “significant improvements to the handset” since the iPhone 15 was launched almost four years ago “when Apple introduced 5G connectivity which compelled a lot of consumers to upgrade the phone”.<\/p>\n
He added: “What they\u2019re hoping for now is that they can introduce enough new AI features into the iPhone 16 which will come out later this year in order to finally drive a big iPhone upgrade cycle.\u201d<\/p>\n<\/div>\n