Apple’s annual revenue has fallen for the first time in 15 years amid slowing hardware sales.
The Cupertino-based technology giant yesterday launched its year-round earnings, revealing that its revenue fell from $ 4.6 billion to $ 46.9 billion, from $ 51.5 billion at the end of its last year financial.
IPhone sales also fell by more than 2.5 million units year-over-year, marking the third consecutive quarter that this has happened, although the iPhone 7 was released last month, which means it had little time to have an impact on Apple’s results.
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The company also reported record revenue from its service business, which grew 24% to a total of $ 6.3 billion.
«We remain extremely confident in the future of our service business, given the unmatched level of commitment, satisfaction and loyalty of our growing base,» said CEO Tim Cook in a conference call transcribed by Looking for Alpha .
«We have almost doubled the size of our service revenues in the last four years and, as we said before, we expect the size of a Fortune 100 company in fiscal year 2017.»
App Store revenue continues to grow, Cook said, and music revenue rose 22 percent. «In fact,» he said, «JD Power recently announced that Apple Music enjoys the highest customer satisfaction rating in the streaming music market.»
Apple Pay is doing well for the company as well, growing by almost 500% year-on-year for the September quarter.
While the company’s annual revenue has declined, CSS Insight research chief Ben Wood said this should not be taken as a sign that the company is in trouble. «Some reports will focus on the fact that Apple has a weak quarter, ignoring the fact that it is still the most profitable device manufacturer on the planet and there seems to be little evidence that it will end soon,» he said.