Apple’s annual sales tumble for initial time given 2001

We spent a day with a iPhone 7

Apple’s 15-year strain is strictly over.

Apple (AAPL, Tech30) only posted a initial annual sales decrease given 2001, a year it launched a iPod and kicked off a extensive run of groundbreaking products.

The tech association suggested Tuesday that annual sales fell to $216 billion in a 2016 mercantile year finale Sep 30, from a record $234 billion in 2015.

The sales decrease is closely connected to a descending sales for a iPhone, that stays Apple’s largest source of revenue.

Apple sole 45.5 million iPhones in a Sep quarter, down from 48 million iPhones in a same entertain a year earlier. That outlines a third uninterrupted entertain when iPhone sales and altogether income have declined from a year prior.

Many analysts have lifted concerns that a tellurian smartphone marketplace is saturated. Customers are holding longer to reinstate their phones. And Apple’s latest iPhone is a passed ringer for a prior dual models, expelling some of a enterprise to upgrade.

Apple CEO Tim Cook pronounced on a discussion call with analysts that direct for a new iPhones is “outstripping supply in a immeasurable infancy of places, quite on a iPhone 7 Plus.”

Apple’s sales in China, once a earnest area of growth, fell 30% year-over-over year as a association faces foe from internal smartphone makers like Xiaomi and Huawei. However, a association expects that to urge subsequent quarter.

“We are really bullish on China,” Cook pronounced on a call, observant a immeasurable series of “people flourishing into a center class.”

Related: Apple underneath Tim Cook: More socially responsible, reduction visionary

The good news is that this sales decrease might infer to be a blip and not a new norm.

Apple is raised that it will post sales of $76 billion to $78 billion in a arriving quarter, adult from $74.8 billion a year earlier.

The holiday entertain is typically Apple’s largest as it represents a initial full entertain when new iPhones are on sale. Apple’s superintendence suggests it is awaiting larger direct for a iPhone 7 than a predecessor.

Katy Huberty, an researcher with Morgan Stanley, wrote in an financier note this month that Apple’s iPhone sales would be helped in partial by “Note 7 issues,” a anxiety to Samsung’s massive recall.

On a discussion call, Apple’s CFO Luca Maestri suggested that developments with other smartphone competitors are “not quite relevant.” The reason, he said, is direct for iPhones is already so high that “we are offered all we can produce.”

The gain news comes dual days before Apple is scheduled to reason a press eventuality in California, where it is widely approaching to betray prolonged awaited updates to a Mac product lineup that could assistance sales.

Apple batch was down 2.5% in after hours trade following a gain release.

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