Apple posts first annual revenue drop for over a decade
Apple has announced its first year-on-year decline in revenues for over a decade as iPhone sales suffer.
Revenue fell nine per cent to $46.85bn (£38.44bn), the third quarterly decline in a row. Analysts were expecting revenue to come in at $46.94bn in the quarter, according to Thomson Reuters.
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Sales for the fiscal year of 2016 were down by eight per cent to $215.6bn and iPhone sales for the three months to 24 September were down five per cent on a year ago, at 45.5m.
Profits were down nine per cent in the fourth quarter at $9bn.
The iPhone sales figures were higher than the 44m analysts predicted, however.
The most valuable publicly-traded company in the world said it will return to growth in the Christmas season, its best sales period. The tech giant is expecting between $76bn and $78bn in sales during its first fiscal quarter of 2017.
Apple is hoping to create more buzz around its products ahead of the festive season when it launches its new MacBook on Thursday.
Ben Wood, chief of research at CCS Insight said: "This is an unrepresentative quarter in Apple's trajectory.
"It continues to be the most profitable device maker on the planet and there seems to be little evidence that will end any time soon."
Tim Cook, Apple's chief executive, said: "Our strong September quarter results cap a very successful fiscal 2016 for Apple.
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"We're thrilled with the customer response to iPhone 7, iPhone 7 Plus and Apple Watch Series 2, as well as the incredible momentum of our services business, where revenue grew 24 per cent to set another all-time record."
Revenue from Apple's services arm, which includes the App Store, iTunes, and mobile payments, grew to $6.3bn in the fourth quarter. Apple's services are now the second-largest source of its income after the iPhone; sales of the iPad and Mac declined.
Revenues were up in Europe and Japan, but suffered in the Americas and especially in China, where revenue fell by 30 per cent year-on-year.