Apple profit ebbs as iPhone sales under pressure

Apple has said its quarterly profit ebbed but topped market forecasts as it announced an unprecedented $110 billion share buyback.

The iPhone maker reported a profit of $23.6 billion on $90.8 billion in revenue in the first three months of this year.

As expected, iPhone sales dropped with pressure growing from China and increased competition from Huawei.

The Silicon Valley giant reported $45.7 billion in revenue from iPhone sales, its main money maker, versus $51.3 billion in the same period a year earlier, a ten percent drop.

In the key Greater China market, sales of iPhones shrank to $16.4 billion from $17.8 billion in a year-over-year comparison, earnings figures showed.

"It's been a tough year for Apple, no longer the world's most valuable company nor the top smartphone provider," Emarketer analyst Jacob Bourne said in a note to investors.

"Waning iPhone demand in China has notably dented revenues."

Tech giant Huawei recently reported that its first-quarter profits surged over fivefold year-on-year, as the U.S.-sanctioned firm continues to bite into competitor Apple's sales.

"Apple's sales were subdued during the quarter as Huawei's comeback has directly impacted Apple in the premium segment," Counterpoint senior research analyst Ivan Lam said.

In another setback for the iPhone, Samsung regained its position as the top smartphone seller worldwide in the first quarter of this year, according to industry tracker International Data Corporation.

Cook said he remains very optimistic about the China market, noting iPhones were top sellers in urban areas and his recent visit to open an Apple store in Shanghai was "fantastic."

"I maintain a great view of China in the long term," Cook said.