Apple's 2Q revenue declines 26% in China

Apple's second-quarter profit fell 22.5 percent as revenue declined for the first time since 2003 and iPhone sales declined for the first time ever. Revenue dropped in every region, with China having the biggest share – a 26 percent year-over-year decline.

Greater China sales, once the tech giant's fastest growing market, fell to $12.49 billion, the company said on Tuesday.

Apple CEO Tim Cook said the Chinese economy has stabilized even though it may not be growing at the white-hot rates of the recent past. “It's not the strong wind at your back of a year ago or even 18 months ago, but it's still a really good economy,” he said.

Luca Maestri, Apple's chief financial officer said the strong dollar played a role in the company's weakness in greater China. In Hong Kong, whose currency is pegged to the dollar, sales fell sharply, but in the Chinese mainland, revenue was down only 11 percent.

iPhone sales in the Americas were down 10 percent. Over all, Apple sold 16 percent fewer iPhones in the quarter compared to the same quarter last year.

The company forecast another decline in the current period because of waning demand for the iPhone as fewer users race to snap up the latest version of the device. Shares fell as much as 8.3 percent in extended trading.

Analysts had expected Apple to report revenue of $52 billion and net income of $11 billion, or $2 a share, according to consensus estimates compiled by S&P Global Market Intelligence.

In last year's second fiscal quarter, Apple reported net income of $13.6 billion, or $2.33 a share, on revenue of $58 billion.

Apple had good news from it service business, with revenue up 20 percent.

The company ended the quarter with $233 billion in cash and marketable securities, and said it would raise its quarterly dividend 10 percent to 57 cents a share and increase the amount of stock it.