Apple reported its first annual revenue decline in 15 years, but they attempted to eschew negative press by citing strong sales of the recently released iPhone 7.
Apple is the most valuable company on Earth, stemming from the sales of the iPhone, iPad, iWatch, and Mac computers over the last ten years.
The company reported a quarterly revenue of $46.9 billion and quarterly net income of $9 billion, or $1.67 per diluted share, on Tuesday. Apple, in the same quarter of 2015, had a revenue of $51.5 billion and net income of $11.1 billion, or $1.96 per diluted share. That is a 9 percent drop in revenue in just one year.
Analysts initially expected the firm to report a $74.9 billion dollar revenue in the final quarter of 2016, the Journal reports.
Some 63 percent of Apple’s revenue in 2016 came from iPhone sales, but still reported a 5.3 percent decline in iPhone unit sales in the fiscal year.
The tech firm also experienced a gross margin loss of over 39 percent this year. Gross margin refers to profit before operating expenses, interest payments and taxes.
Apple’s fantastic year in 2015 was largely due to exponential growth in the Chinese market. This year, however, the company has not been able to keep up the pace in China, and as a result Apple incurred a 30 percent revenue loss in the nation in 2016.
Company stock is down nearly 3 percent as of Wednesday morning.
Attempting to calm fears among investors and consumers alike, the company reports that it expects revenue to be between $76 billion and $78 billion in the first fiscal quarter of 2017.
There are a few beacons of hope for the Cupertino tech company.
The first is that it will release new Mac models, the expected release date on October 27. The second pillar of light for the company is its strong sales of the new iPhone 7, which has likely been bolstered by the Samsung Galaxy Note7 recall and vast uncertainty facing the Korean technology firm. The third and final positive factor Apple was its uptick in their Services division, which increased 24.4 percent from $5.09 billion to $6.33 billion.
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