Apple has posted a drop in quarterly profit for the first time in nearly a decade.

The IT giant announced Tuesday, local time, that it earned nine-point-five billion U.S. dollars in net profit between January and March, down 18 percent from eleven-point-six billion U.S. dollars in the first quarter of 2012.

However, Apple saw its earnings per share exceed market expectations of nine dollars and 97 cents to reach ten dollars and nine cents.

Analysts said the increased sale of Apple's cheaper models and fierce competition with rivals took a bite out of its profit.