Sales of Apple iPhones dropped at the end of last year, as the tech firm’s roll out of new artificial intelligence, AI, features was met with a lukewarm response.
According to BBC reports chief executive Tim Cook said the new features helped to drive stronger sales in the countries where they were available, such as the US.
But iPhone sales slipped about 1 per cent overall compared with last year, to just over US $69 billion.
The company is also contending with other challenges, including a sales drop in China and the possibility its US sales will be hit by tariffs threatened by President Donald Trump.
He has called for tariffs of up to 60 per cent on products made in China, where Apple does much of its manufacturing.
But the timing and full scope of those plans, which would put a new tax on imports into the US, remains highly uncertain.
Mr Cook told investors on Thursday the company was monitoring the situation.
Apple has been gradually introducing AI features to its products, starting last year in the US.
Investors have been hoping this will re-ignite sales, which have slowed as customers hold onto their phones and other products for longer.
Mr Cook said Apple was expecting to push out the AI features to more languages in April.