Apple's annual revenues fall for the first time in 15 years

Hardware sales are dipping, but Apple buoyed by services income

Apple's annual revenues have fallen for the first time in 15 years, amid slowing hardware sales.

The Cupertino-based tech giant released its full-year earnings yesterday, revealing that its revenues have shrunk by $4.6 billion to $46.9 billion, from $51.5 billion at the end of its last financial year.

iPhone sales also fell by over 2.5 million units year-on-year, marking the third consecutive quarter that this has happened, though the iPhone 7 was only released last month, meaning it has had little time to make an impact on Apple's bottom line.

The company also cited record revenues from its services business, which grew by 24%, reaching a total of $6.3 billion.

Advertisement
Advertisement - Article continues below
Advertisement - Article continues below

"We remain very confident about the future of our services business given the unmatched level of engagement, satisfaction and loyalty of our growing installed base," CEO Tim Cook said in a conference call transcribed by Seeking Alpha.

"We have almost doubled the size of our services revenue in the last four years, and as we've said before, we expect it to be the size of a Fortune 100 company in fiscal 2017."

App Store revenue is still growing, Cook stated, and Music revenue went up by 22%. "In fact," he said, "J.D. Power recently announced that Apple Music enjoys the highest customer satisfaction rating in the streaming music market."

Apple Pay is also performing well for the company, with a year-on-year growth of almost 500% for the September quarter.

While the company's annual revenues have gone down, CSS Insight's chief of research, Ben Wood, said this shouldn't be taken as a sign that the company is in trouble.

"Some reports will focus on Apple having a weak quarter, which ignores the fact that it continues to be the most profitable device maker on the planet, and there seems little evidence that will end any time soon," he said.

Featured Resources

What you need to know about migrating to SAP S/4HANA

Factors to assess how and when to begin migration

Download now

Your enterprise cloud solutions guide

Infrastructure designed to meet your company's IT needs for next-generation cloud applications

Download now

Testing for compliance just became easier

How you can use technology to ensure compliance in your organisation

Download now

Best practices for implementing security awareness training

How to develop a security awareness programme that will actually change behaviour

Download now
Advertisement

Recommended

Visit/business-strategy/33311/apple-launches-new-tv-gaming-and-finance-services
Business strategy

Apple launches new TV, gaming and finance services

25 Mar 2019
Visit/hardware/laptops/354509/apple-macbook-pro-16in-review-a-little-bigger-a-lot-better
Laptops

Apple MacBook Pro 16in review: A little bigger, a lot better

10 Jan 2020
Visit/mobile/23617/the-best-smartphones-to-buy
Mobile

Best smartphone 2019: Apple, Samsung and OnePlus duke it out

24 Dec 2019
Visit/hardware/354336/the-it-pro-products-of-the-year-2019-all-the-years-best-hardware
Hardware

The IT Pro Products of the Year 2019: All the year’s best hardware

24 Dec 2019

Most Popular

Visit/microsoft-windows/32066/what-to-do-if-youre-still-running-windows-7
Microsoft Windows

What to do if you're still running Windows 7

14 Jan 2020
Visit/operating-systems/25802/17-windows-10-problems-and-how-to-fix-them
operating systems

17 Windows 10 problems - and how to fix them

13 Jan 2020
Visit/policy-legislation/data-governance/354496/brexit-security-talks-under-threat-after-uk-accused-of
data governance

Brexit security talks under threat after UK accused of illegally copying Schengen data

10 Jan 2020
Visit/hardware/laptops/354533/dell-xps-13-new-9300-hands-on-review-chasing-perfection
Laptops

Dell XPS 13 (New 9300) hands-on review: Chasing perfection

14 Jan 2020