Apple’s sales in China declined in the fourth quarter, worrying analysts and investors.

This decline resulted in a 1.4% drop in Apple’s shares during after-hours trading.

Meanwhile, Apple’s AI-enhanced iPhone has boosted its quarterly sales beyond Wall Street’s expectations.

iPhone sales increased by 5.5% to US$46.22 billion, surpassing analysts’ expectations of $45.47 billion.

However, other product categories did not perform as well.

Analyst Tom Forte attributes the dip in Apple’s shares to underwhelming China sales. He also points to possible ongoing challenges in the region.