Is Apple rotting? Tech giant's annual revenue falls as iPhone sales drop

Will the iPhone 7 still sell?

Apple’s third quarter in a row sees the fall of iPhone sales but revenues have beaten analysts’ expectations.

The tech icon’s sales soared in the three months leading up to 24 September with 45.1m compared to its average of 44.8m.

The company forecast a higher revenue for the holiday season which they estimated between $76bn and $78bn.

Revenue in the fourth quarter fell by 9% to $46.85bn.

This meant that overall annual profits fell for the first time since 2001, this could highlight a slowdown in the smartphone market as well a greater competition with smartphone rivals.

Ben Wood, Chief of Research, CCS Insight said: “This is an unrepresentative quarter in Apple’s trajectory. All eyes will be on iPhone numbers and growth in Apple services. Analysts will also be looking to glean anything about expected performance of iPhone 7 in the all important fourth quarter.”

“This is expected to be the first quarter of volume declines for Apple. It is exacerbated by blow out sales of the iPhone 6 a year ago, but the iPhone 7 will give a substantial boost in Q4”

“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.”