Apple's revenues fall for the first time in 15 years after iPhone sales slump

iPhone, iPad and Mac sales all down during 2016 - but will the iPhone 7 and tomorrow's new MacBooks change that?

Apple has reported its first annual fall in sales since 2001, with faltering sales of the flagship iPhone - which now accounts for more than half of the company's profits - declining.

In its fourth quarter and full-year results announcement yesterday, the company revealed revenues down from $233.7bn in fiscal 2015 to $217bn in 2016. Apple also reported profits of $45.6bn for 2016, down nine per cent from the $53.4bn it reported for 2015.

This year-on-year slump is largely due to an enduring dip in sales of iPhones. For the fourth quarter, Apple sold 45.5 million iPhones which, while better than expected, compares to 48 million sold this time last year.

It's worth noting, though, that Apple's latest numbers only include a few weeks of iPhone 7 and 7 Plus sales, which analysts expect to have received a boost following Samsung's Galaxy Note 7 fiasco, with customers switching to Apple when Samsung was forced to withdraw the dangerous product.

Apple iPad sales were also down in the fourth quarter to 9.27 million units compared to 9.88 million, suggesting that its sales drop is bottoming out, while Mac sales saw a chunky 14 per cent decline from 5.71 million units in 2015 to 4.89 million.

The drop in Mac sales isn't surprising given how stale Apple's laptop lineup has become. But this should change on Thursday, with Apple set to announce upgrades to its ageing MacBook Pro and MacBook Air ranges.

Apple's 'other products', a category that includes the Apple Watch, Apple TV and Beats headphones, also suffered during the three months ending September, with revenue falling 22 per cent from $3.05bn to $2.37bn.

It's not all bad news, though, as Apple noted that its services division, which includes iCloud, iTunes, and Apple Music, grew 24 per cent year over year.

Overall for the fourth quarter, Apple posted $9bn in profit and $46.9bn in revenue, compared to $11.1bn in profit and $51.5bn in revenue in the fourth quarter of 2015.

Still, somehow, Apple CEO Tim Cook remains upbeat and hinted that sales of the new iPhones and its Apple Watch upgrade have perhaps been better than its fourth quarter earnings suggest.

"Our strong September quarter results cap a very successful fiscal 2016 for Apple," he said.

"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, where revenue grew 24 per cent to set another all-time record."

For the next quarter, which is typically Apple's biggest, the firm is projecting that it will post sales of $76bn to $78bn, up from $74.8bn a year earlier.