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Apple’s revenue experiences first annual drop since 2001

Apple’s revenues had its first annual drop since 2001 after seeing a decline in iPhone sales. For the fiscal fourth quarter 2016, which ended in September 24, the company saw its revenue decline 9.8% to $46.9 billion and profit down by 23% to $9 billion. Sales of the iPhone dropped 13% year-over-year to 45.5 million units. Mac sales decreased 17% to $5.7 billion. Revenue from the iPad were more stable due to the new iPad Pro line. Its services division which includes Apple Music saw a 24% growth to an all-time quarterly high of $6.3 billion. Apple’s China market is not growing as fast as before, posting a 30% year-over-year decline in the fourth quarter. The company expects revenue for the December quarter between $76 billion to $78 billion, higher than what analysts are forecasting. The company will introduce new Mac products at its launch event Thursday.

Key Takeaway: 

Apple posted its first yearly drop in sales since 2001 after reporting its fourth quarter results which saw iPhone and Mac sales drop as well its China market decline; its services unit, however, grew double digits to a quarterly high of $6.3 billion.

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Nick Statt
Publication Date: 
October 25, 2016