Apple’s iPhone sales continued to slip in the September quarter, the company says in its just-released earnings report for the period — although its guidance for the holiday season suggests that it may grow again.
The company sold 45.5 million iPhones in its fiscal Q4, a 5% drop vs the period last year.
That contributed to a 19% drop in net income, to $9.01 billion, on revenues of $46.85 billion, down 9%. The top line was a hair below the $46.89 billion that analysts anticipated. Earnings at $1.67 a share beat the consensus by 2 cents.
Apple revenues fell 7.7% for the full fiscal year, which is the first time that has happened since 2001.
Apple shares are down about 2.4% in post-market trading.
CEO Tim Cook characterized the results as “strong” adding that he’s “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% to set another all-time record.”
The company projects that revenues for the last three months of this year will come in between $76 billion and $78 billion, up from $75.87 in the same period last year.
iPhones account for about 60% of Apple’s revenues.
Other product lines also struggled in the September quarter. Apple sold 9.3 million iPads, down 6% from last year, and 4.9 million Macs, down 14%.