iPhone sales of $69.1 billion were, however, down slightly and below forecasts of about $71 billion. Revenue for the China region, where Apple has come under increasing competitive pressure from local smartphone makers such as Huawei and Xiaomi, dropped about 11 per cent to $18.5 billion.

Apple said that sales in China dropped in its latest quarter versus the prior year. Revenue in the Greater China segment fell to $18.5 billion in the first quarter, when analysts were expecting sales of $20.

Apple reported the company's best quarterly sales ever on Thursday, with the tech giant pointing to a strong holiday performance leading to $124.3 billion in Q1 revenue. The company posted the big quarter despite declining sales in China and a minor dip in iPhone revenue.