Billionaire investor Carl Icahn told CNBC on Thursday he has sold his Apple position as the tech giant's stock continues to shed value after disappointing earnings.

"We no longer have a position in Apple," Icahn told CNBC's "Power Lunch," noting Apple is a "great company" and CEO Tim Cook is "doing a great job." Icahn previously owned a little less than a percent of the tech giant's outstanding shares, which were down more than 3 percent midafternoon Thursday after falling more than 6 percent Wednesday. He said he made roughly $2 billion on Apple, a stock he continued to tout as "cheap" despite his reservations. Read MoreFull Icahn interview

Icahn said China's attitude toward Apple largely drove him to exit his position. "You worry a little bit — and maybe more than a little — about China's attitude," Icahn said, later adding that China's government could "come in and make it very difficult for Apple to sell there ... you can do pretty much what you want there." He added, though, that if China "was basically steadied," he would buy back into Apple.

The company on Tuesday posted quarterly earnings of $1.90 per share on $50.56 billion in revenue, both of which missed Wall Street's expectations. Apple's sales declined 13 percent from the prior-year period, its first year-over-year revenue drop since 2003. Sales of its key iPhone slid to 51.2 million from 61.2 million the previous year.