Apple Inc (stock code: NASDAQ: AAPL) released a disappointing earnings preview last Thursday, with its iPhone sales and total revenue expected to fall short of Wall Street expectations as it faces challenges in the Chinese market.。

Apple's overall fiscal first-quarter sales and earnings beat analysts' expectations, thanks largely to iPhone growth, but the positive did not drive the stock, which fell 3 percent in after-hours trading。

Analysts believe the results validate some concerns about the company that its iconic iPhone is losing market share in key Asian regions and that Chinese consumers are turning to fold-screen phones as well as Huawei phones.。

Apple's fourth-quarter sales in China hit 208, according to LSEG.$200 million, below analyst expectations of 235.300 million dollars。Apple's chief financial officer, Luca Maestri, said on a conference call that revenue for the current quarter would be at least $5 billion lower than a year earlier.。

According to Maestri, the company's revenue forecast for the fiscal second quarter (through the end of March) is about $90 billion, with iPhone sales of about $46 billion.。Wall Street expects revenue for the quarter to be about $96 billion and iPhone sales to be about $50 billion.。

Apple's first-quarter sales were 1,195.$800 million, EPS of 2.$18, both beat analyst expectations。

In addition to China and Japan, Apple's sales in the rest of Asia reached 101.$600 million, more than analysts expected。Separately, Apple CEO Tim Cook said iPhone sales in South Korea hit an all-time high。

Notably, the fastest growth in the first quarter was in Apple's services division, with sales reaching 231..$200 million, up 11%, slightly below analyst expectations。Apple's Mac sales up slightly to 77.$800 million, in line with analyst expectations。iPad sales drop 25% to 70.$200 million, slightly below Wall Street expectations。Apple's wearables unit sales drop to 119.$500 million, just in line with analysts' expectations。

Overall, although Apple faces challenges from the Chinese market, its performance in the rest of Asia and the service sector is still relatively strong.。However, the market is more cautious about its iPhone sales, which may have an impact on the company's future share price。