Apple Reports First Annual Revenue Decline Since 2001

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Woah! Apple reported its third consecutive decline in quarterly revenue on Tuesday (Oct. 25), which marks the first decline in annual revenue since 2001.

Apple is still making money, hand over fist, but its numbers fell from $233.7 billion in 2015 to $217 billion in the 2016 fiscal year -- a 9 percent decline.

Experts credit this to the continued decline in iPhone sales, down 5 percent year over year. However, the end of the quarter came ahead of the launch of the iPhone 7, of which its sales will be reported next quarter.

There's high expectations for next year's iPhone, the 10th anniversary, but it's unclear if it will be able to maintain sales like previous iPhones have.

CEO Tim Cook said that improvements in Apple's services business and the new iPhone 7 were improving the company’s outlook for the coming quarter.

“The customer response has really been off the charts,” he said “We couldn’t be more happy with how it’s been received.”