Before retailers

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The problem stemmed from a delay in regulatory approval for the new iPhones by the Chinese government. The country's Ministry of Industry and Information Technology had to approve the new iPhones for network access before retailers could start selling them. That approval stalled and didn't come through until late September.

During a conference call with analysts on Monday to discuss last quarter's earnings, Apple CEO Tim Cook addressed the issue with China. In explaining the sales factor, Cook noted the launch delay for the new smartphones in China. But he also attributed the sales disparity to another factor -- namely inventory -- and said that in one respect iPhone sales actually rose in China.