A decline in sales of iPhone, iPad and iMac products has resulted in the first decline in annual revenues for Apple in 16 years in fiscal 2016. Apple saw its revenues drop to US$217 billion from US$233.7 billion a year earlier.
Apple shipped 45.5 million iPhones in the fourth quarter of fiscal 2016, a decline of 2.5 million units, or 5%, from the 48 million shipped a year earlier. ASPs of iPhones stood at US$618.72 in fiscal fourth quarter compared to US$670 a year ago.
Consequently, iPhone revenues slid 13% on quarter in the fiscal fourth quarter, following a decline of 18% and 23%, respectively, in the previous two quarters.
In addition to a 5% sequential decline in iPhone shipment volume, shipments of iPad and iMac products also slipped 6% and 17%, respectively, in the fourth quarter. In particular, shipments of iMac products declined for the fourth consecutive quarter, Digitimes Research noted. iMac shipments dropped 3%, 9%, and 13%, respectively, in the first three quarters of fiscal 2016.
While overseas sales accounted for over 60% of Apple’s total revenues, sales in the Greater China area have also dropped for three consecutive quarters, with on-quarter decline rates reaching 26%, 33% and 30%, respectively, in the last three quarters of fiscal 2016. Previously, Apple enjoyed strong revenue growth in the Greater China area for five straight quarters during the period of October 2014 to September 2015, Digitimes research noted.
While sales of iPhone, iPad and iMac products suffered declines in terms of shipment volume and value in the fourth quarter, sales of Apple services, including iCloud, iTunes and Apple Music, soared 24% sequentially in the quarter. Apple’s services revenues were up 22% on year to US$24.348 billion in fiscal 2016, making the services business the second largest source of revenues for the company, replacing the previous iPad products, Digitimes Research noted.