Apple pivots to services business as iPhone sales decline.
Apple’s revenues and profits have dropped again in Q4 as iPhone sales continue to decline.
The company achieved quarterly revenue of $46.9 billion and quarterly profit of $9 billion. These figures represent declines of 9 percent and 19 percent respectively year-on-year.
For the full-year, profits fell 14 percent to $45.7bn.
The fall was driven by plummeting iPhone sales, which fell 5 percent year-on-year to reach 45,513 units shipped. This continues the decline in sales that began in Q2 2016. For the full year, sales fell 8 percent compared to 2015.
In particular, Apple can no longer rely on the China market for growth, which is becoming saturated. In Q4 2016 there was a year-on-year drop of 30 percent in this market.
The Americas also saw revenue down 7 percent, while in Europe and Japan there were increases of 3 and 10 percent respectively.
iPad and Mac sales fell as well in Q4, down 6 percent and 14 percent respectively.
However, Apple saw some growth in its services business, where revenue grew 24 percent to reach $6.325 billion. This could be a potential future area of growth for the company as device sales fall.
“Our strong September quarter results cap a very successful fiscal 2016 for Apple,” said Tim Cook, Apple’s CEO.
“We’re thrilled with the customer response to iPhone 7, iPhone 7 Plus and Apple Watch Series 2, as well as the incredible momentum of our Services business,” said Cook, citing the figure there as an all-time record.
“We are pleased to have generated $16.1 billion in operating cash flow, a new record for the September quarter,” said Luca Maestri, Apple’s CFO. “We also returned $9.3 billion to investors through dividends and share repurchases during the quarter and have now completed over $186 billion of our capital return program.”
For Q1 2017, Apple expects revenues of between $76 billion and $78 billion.