Apple sales in China dropped 27 percent in the final quarter of 2018, with CEO Tim Cook admitting that higher iPhone prices are a "factor" in the decline.

The United States tech giant said it brought in $13.2 billion in China in the holiday quarter, down from nearly $18 billion during the same period in 2017.

Apple registered shrinking sales revenue in China across all of its leading products, iPhones, Macs, and iPads, along with reduced footfall in its stores.

Cook explained that foreign exchange issues have amplified price differences in international markets, in particular emerging markets, which tend to move more significantly versus the dollar.

He said that Apple is emphasizing trade-ins and installment payments to revitalize iPhone sales.

Earlier this month, Apple dropped the price of the iPhone XR and other iPhones for its channel partners in China, allowing third-party vendors to purchase cheaper iPhones and pass those savings to customers.