Apple’s report Thursday afternoon is the latest in a busy week for earnings and will provide a test for the iPhone maker’s DeepSeek inspired rally this week.

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 (NASDAQ:AAPL) shares edged lower after it reported its first quarter fiscal 2025 financial results on Thursday that demonstrated lower sales to China despite the Service segment reaching a record high.

Apple reported $18.5 billion in sales in greater China last quarter, comfortably below consensus estimates of $20.9 billion.

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.