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Scale insects populate the stems or branches of plants and suck out the nutrients. Some are soft and some are armored during part of the life cycle. Cottony cushion scale is a soft variety that is often seen on apple trees. The crawlers are reddish and the females develop elongated white egg sacs on their backs, but it is most likely the molting skins that look like cotton that will alert you to their presence. Small infestations can sometimes be wiped off with gloved fingers. Natural predators may also move in to take care of the problem. There are beetles and parasitic flies that can provide good control. Keeping ants out of the tree will also help because ants will protect the pests in order to be able to eat their sugary exudate. 

More information: Cottony Cushion Scale Pest Note