The tech giant suffered an 11% decline in China sales last quarter, raising concerns about its ability to fend off fierce competition in the country.

Apple shares rose 2% on Friday after a rosy forecast fuelled hopes of an iPhone sales rebound, even as tough competition and a lack of AI features weigh on demand in key market China.

In a post on X, Wedbush's Dan Ives said Apple had "yet again proved the skeptics wrong as the upgrade cycle for iPhone 16 is ahead of iPhone 15 with March guidance much better tha

When Apple reported its December quarter earnings on Thursday, it revealed that China sales had dropped 11.1% on an annual basis. Cook told analysts that over half of the decline was due to inventory issues.

“Our record revenue and strong operating margins drove EPS to a new all-time record with double-digit growth and allowed us to return over $30 billion to shareholders,” Apple CFO Kevan Parekh said. “We are also pleased that our installed base of active devices has reached a new all-time high across all products and geographic segments.”

Apple stock lifted following guidance for the current quarter after the company reported a drop in ​iPhone and China sales. Overall revenue grew 4%.

Apple stock has continued to run higher while its sales and earnings growth dramatically slowed, especially in the last two years. Over the last five years, the stock price is up 262%, revenue is up just 45.9%, and diluted earnings per share (EPS) increased by 90.5%.

Wall Street is mainly focused on Apple's iPhone sales in China and any guidance related to its March quarter, which could include iPhone SE4 sales.

Apple already had a rough start to the year. More worries about how its latest iPhones are selling aren’t helpi