Apple reported a 26 percent decline year-on-year in its quarterly revenue from China. Its sales in the region stood at $12.5 billion in the year's first quarter.

The news come on the heels of another setback for Apple in China. The company was recently ordered to shutdown its iTunes Books and iTunes Movies services in the country. Apple has not provided any timeline for the resumption of the services.

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Despite all these impediments, the tech giant is still optimistic about its future in China. Speaking at a conference call, CEO Tim Cook explained that in constant currency terms, the decline in the sales stood at 7 percent.

Apple is also looking for bold plans ahead in China. Its future strategy to boost its presence in its most important growth market includes setting up of at least five new physical Apple stores in the country by the end of the third quarter. The company intends to scale up by 25 new stores in the year 2016. The policy is in line with the previous stand taken by the company.

"Beyond the short-term volatility, we remain very confident about the long-term potential about the China market and the large opportunities ahead of us, and we are maintaining our investment plans," Cook said in January.

iPhones enjoy high reputation in China where the gadget is treated as veritable status symbol. The recent slowdown in demand points out to the saturation of Chinese market than anything else. Barring the recent most quarter, Greater China reported double digit growth rate, in comparison to much more moderate growth shown by the US and European markets.

TagsiPhone, apple, Tim Cook