San Francisco, United States–Tech heavyweight Apple reported sales growth Thursday for the first time in recent quarters, with revenue up slightly from a year prior while profits surpassed expectations.
But sales in Greater China declined in the October to December period, amid concerns of more competition in the key market.
Shares of the iPhone maker slumped 0.9 percent in after hours trading.
Apple logged $119.6 billion in sales for its most recent quarter, up two percent from the year-ago period.
For the quarter, its profits came in at $33.9 billion, with diluted earnings per share above expectations at $2.18.
“Today Apple is reporting revenue growth for the December quarter fueled by iPhone sales, and an all-time revenue record in Services,” said chief executive Tim Cook in a statement.
The company’s closely watched iPhone sales came in at $69.7 billion, an improvement from the same quarter in 2022 as well.
But worries surrounding the China market cast a pall on the news.
The company said its net sales in Greater China — including mainland China, Hong Kong, and Taiwan — declined from a year ago to $20.8 billion in the latest quarter.
Data from Counterpoint Research released Thursday showed that Apple’s share of the smartphone market reached the highest since late 2020 in the final three months last year.
This was largely due to a rebound from previous Covid-19 related factory shutdowns, causing production disruptions.
Counterpoint added that the final months in a year are typically a strong period for Apple, with iPhone sales boosted by holiday demand.
Looking ahead, investors are eyeing the performance of its highly anticipated Vision Pro mixed reality headset, which will be launched in the United States on Friday.