Annual sales fell to $216 billion in the 2016 fiscal year ending September 30, from a record $234 billion in 2015.
The sales decline is closely connected to the falling sales for the iPhone, which remains Apple’s largest source of revenue.
Apple sold 45.5 million iPhones in the September quarter, down from 48 million iPhones in the same quarter a year earlier. That marks the third consecutive quarter when iPhone sales and overall revenue have declined from a year prior.
The Tame Apple Press has rushed to say that the global smartphone market is saturated and customers are taking longer to replace their phones. However everyone has to admit that Jobs’ Mob didn’t help its case by releasing the iPhone 7 which is a “dead ringer” for the previous two models.
Of course Apple CEO Tim Cook kept on spinning claiming that demand for the new iPhones is “outstripping supply in the vast majority of places, particularly on the iPhone 7 Plus”.
However, the reality is that Apple’s sales in China, once a promising area of growth, fell 30 percent year-over-over year.
Cook claims that next year will be better in China as the country gets a stronger middle class which can afford to waste money on its products.
“We are very bullish on China,” Cook said on the call, noting the vast number of “people growing into the middle class”.
Apple is projecting that it will post sales of $76 billion to $78 billion in the upcoming quarter, up from $74.8 billion a year earlier.
The holiday quarter is typically Apple’s largest as it represents the first full quarter when new iPhones are on sale. Apple’s guidance suggests it is expecting greater demand for the iPhone 7 than its predecessor.
Apple stock was down 2.5 percent in after hours trading following the earnings release.