Apple faces regulatory rulings in Europe that threaten to undermine its lucrative App Store business. Apple said sales from its services business, which includes the App Store as well as music and cloud storage, were $27.42 billion, topping analyst expectations of $26.8 billion.

Apple’s sales in China have also suffered from competition from local handset makers such as Huawei and Xiaomi. However, revenue from China increased 4 per cent in the quarter from a year ago, hitting $15.4bn and bucking a trend of quarterly declines.