It's possible it might be wooly apple aphids. (You can Google them to see pictures.)
If the tree is small and the problem is severe, it may be better to dig up the plant and replant with a type of apple that is resistant to this pest since the area becomes infected.Otherwise, spray an application of dormant oil about now, but the temperatures both 2 days before and 2 days after application must be above 45 degrees. Follow up with an early fall application of an insecticide labeled for aphids. Follow package directions exactly. Repeat this process the following year.