Welcome to the woolly apple aphid. I've got these things as well. They can do a lot of damage, mainly to the roots. But I'm not really too sure how concerned you need to be.

The Fruitnut

Thanks alot. SO would a good insecticide do the job. I believe I have seven dust or a copper based product.

Brandon,

Sevin (carbaryl) is labeled for wooly apple aphid. However, commercial spray guides indicate its effectiveness ranges from fair to poor. Mites are sorta different than other insects. What frequently works on other insects will not work on mites. Typically miticides are used to control mites. For home orchards, insecticidal soaps are generally recommended. However, once the mites produce the waxy white substance, no chemical control will be effective, the wax protects them from chemical exposure. It is recommended to attack them at the crawler stage before they produce the wax.

However, since you're at the wax producing stage, I would strip off the wax, and if you wanted to go the extra mile, spray the trunks and branches affected with a summer oil spray. From my experience, once my trees got more mature, wooly apple aphid hasn't been a problem.