Apple iPhone sales fall but beat estimates

The world's most valuable publicly traded company said improved sales from China were around the corner, despite revenue falling almost 30 percent from the country in the fiscal fourth quarter. It said sales so far to India have only scratched the surface.

But a slight miss on quarterly revenue and a projection of gross profit margins slightly behind analyst targets reflected broader concerns that Apple may have lost its tech superiority, even with the refreshed iPhone 7.

"In essence, in China and elsewhere, while Apple’s products are still seen favorably, the distance between Apple and its competitors is nowhere near as great as it once was," Neil Saunders, head of retail research firm Conlumino, wrote in a note.

Apple shares fell 2.8 percent to $114.99 in after-hours trading.

Chief Financial Officer Luca Maestri said in a phone interview with Reuters it was "impossible to know" if there was any effect yet from rival Samsung Electronics Co Ltd halting production of its fire-prone Galaxy Note 7 phones earlier this month.

He also said that Apple was "supply constrained" and selling all the smartphones it could make.

"It's clear that Apple is bullish about growth in the iPhone, but there's little evidence of that growth in the actual results announced today," said analyst Jan Dawson of Jackdaw Research.

"Given that the iPhone 7 and especially the iPhone 7 Plus is in short supply, Apple is going to be a little constrained in its ability to take full advantage of the strong demand we're seeing," he added.