So here is a picture of what I am facing
Is this a sign of heart rot? What should I do?
It seems to be confined to this one branch (no apples on that branch at all).
Remove that whole limb ASAP. It's at least "mostly dead" if it's got shelf fungus growing on it.
The fungus is a symptom, not the cause, but you want to remove the dead wood regardless.
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The apples on the other branches have already been harmed. What you are seeing is the fruiting body of a myceliar network which is the actual fungus. That network of hyphae extends into the bark layers, cambium, sapwood and heartwood to extract nutrients from the organic matter in that branch. If you leave it on there, it will extend into the trunk and travel up into the other branches, if it already hasn't. The moment you see shelf fungus, the branch it is on needs to be removed ASAP. Yep, it's heart rot as defined by the link. Jun 27 '15 at 15:47
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Just curious, does it mean the fruits on the branch would have gone bad as well ? Jun 27 '15 at 16:26
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@DallasCarter Probably not, but you really shouldn't wait for them to ripen.– Stephie ♦Jun 27 '15 at 17:03
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Just finished removing it. Will probably just burn all the wood in the next day or so.– mikeazoJun 27 '15 at 18:52