Apple posts first yearly decline in revenue, profit since 2001

CUPERTINO, Calif., Oct. 25 (UPI) -- For the first time in 15 years, sales and profits at Apple Inc. were lower in 2016 than they were the previous year, the company said, though quarterly results still beat analysts' expectations.

Apple released its earnings report for the fourth quarter on Tuesday, which completes the company's performance for fiscal 2016.

For the fourth quarter, which ended Sept. 24, Apple earned $9 billion -- or $1.67 per share -- which is $2 billion less than its income from the same quarter in 2015.

Net revenue was $46.9 billion, a fall of 9 percent from 2015 ($51.5 billion).

Nevertheless, Apple beat the expectations of most analysts, who predicted a quarterly increase of about $1.65 per share.

For the entire fiscal year, Apple reported a net income of $45.6 billion -- down from the $53.4 billion reported for 2015.

It's the first time Apple has seen yearly declines in earnings and revenue since 2001.

The end of the fourth quarter came a week after the company released its new iPhone 7, which has experienced a lag in total sales.

Still, company officials said the figures are positive and represent key growth in some areas.

"Our strong September quarter results cap a very successful fiscal 2016 for Apple," CEO Tim Cook said in a statement. "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 percent to set another all-time record."

In its report, Apple said it expects revenue between $76-78 billion in the first quarter of 2017 and "other income" of $400 million.

The dip in earnings and sales is Apple's third consecutive quarterly decline.