• iPhone sales are set to fall in 2016 for the first time since it launched in 2007.
  • iPhone sales account for two-thirds of Apple revenues.
  • Apple warned that revenue in its current quarter to March will decline for the first time in 13 years.

 

Apple has warned that iPhone sales will fall for the first time ever this year and group revenue will decline in its current quarter.

The technology giant revealed that iPhone sales were flat in the final quarter of 2015, falling below analyst expectations. It sold 74.8m devices in its last quarter against 74.5m in 2014.

iPhones account for two-thirds of Apple sales. The devices has been fundamental in making Apple the world’s largest company.

Apple posted record profits of $18.4bn and record sales of $75.9bn in the final quarter of 2015 but warned sales would fall in its current quarter. This would be Apple’s first sales decline in 13 years.

It forecast current quarter sales would be between $50bn and $53bn, below the $58bn it reported for the same period a year ago.

Meanwhile, iPad sales are also plunging. In the final quarter of 2015, it sold 16.1m tablets, down from 21.4m in the same period in 2014. Mac sales were also down, slipping 4%.

Revenues at its “other products” category, which includes Apple Watch, grew sharply to $4.4bn, up from $2.6bn in the third quarter of 2015.

Despite the warning on iPhone sales, Apple’s share price held tight.