Apple top executive Tim Cook has hinted it could lower iPhone prices in some places in an attempt to boost falling sales.
Based on its current financial report, revenue from the iPhone, responsible for most of the firm’s profits, fell 15%.
Overall the firm’s revenue was down 5% from a year ago to about $84.3bn (£64.5bn).
The slowdown had been expected after the tech giant warned investors earlier this month that revenue would be about $84bn, lower than expected.
The tech giant blamed the poor performance partly on economic slowdown in China.
But Cook said customers were also struggling with the firm’s high prices.
He said a strong dollar, which makes its products comparatively more expensive, had hurt its sales in emerging markets.
The company leader said the tech giant had started this month to re-price its phones to shield customers from the impact of currency fluctuations.
“What we have done in January in some locations and [for] some products is essentially absorb part or all of the foreign currency move as compared to last year,” he said.
With the incumbent company’s performance, executives said they expected the firm’s challenges to continue.
Apple predicted revenue for the three months to 31 March of $55bn-$59bn – suggesting a drop of at least 3.4% year-on-year.
“The macroeconomic environment, particularly in emerging markets, will continue to be there,” Luca Maestri, the firm’s chief financial officer, said.