Apple reported a decline in iPhone sales globally, except for Europe, with a more than 10% drop in demand in the first quarter of this year. Overall company revenues decreased by 4% to $90.8bn, attributed partially to supply disruptions from Covid-19. Despite this, Apple's share price rose after the news.

The company emphasized that these figures were influenced by exceptional sales during the same period last year due to pandemic-related factors. Apple anticipates a return to sales growth soon, citing upcoming product launches and investments in artificial intelligence (AI).

iPhone sales in greater China fell by 8%, but CEO Tim Cook highlighted that sales actually increased in "mainland" China, expressing long-term optimism about the market.

In China, local competition from Huawei is intense, although Apple's iPhones maintain an edge in features, functionality, and prestige, according to analyst Gil Luria.

While Apple has faced sales declines in recent quarters, the broader smartphone market has seen growth, particularly in the first quarter of this year.

Apple is banking on significant advancements with the iPhone 16, slated for release later this year, to boost consumer interest and drive a notable upgrade cycle.

In addition to sales challenges, Apple is contending with legal issues, including antitrust disputes in the US and Europe regarding app store fees. The company also benefits from a substantial payment from Google, a point of contention in ongoing legal battles.

Looking ahead, Apple expects modest sales growth in the next quarter and anticipates strong growth in its services business. Analysts suggest that China's performance is better than anticipated, and upcoming events could positively impact investor sentiment.