iPhone sales continue to shrivel in Apple's fiscal fourth quarter

Apple closed out its fiscal 2016 today with fourth-quarter revenue of $46.9 billion, down from $51.5 billion a year ago, and net income of $9 billion, down from $11.1 billion. The company's gross margin fell to 38% from 39.9% a year ago. The company made 62% of its revenue from international sales.

iPhone sales are where Apple makes most of its bacon, and the company took in $28.2 billion from 45.5 million iPhone sales. Those numbers are down from last year's 48 million units and $32.2 billion in revenue—a five-percent decline in unit sales and a 13% decline in revenue. The iPhone 7 and iPhone 7 Plus, introduced a little over a month ago, do seem to be moving well, however. Apple recorded a 13% sequential increase in iPhones sold and a 17% sequential increase in iPhone revenue.

Other areas of the company's business aren't popping any corks today, either. iPad unit sales contracted six percent from a year ago to 9.2 million units, and iPad revenue was flat year-on-year at $4.2 billion. Mac sales contracted 14% to 4.9 million units, and Mac revenues declined 17% to $5.7 billion. The company's "Other Products" raked in $2.4 billion, down 22% from this time last year. Without further details, it's hard to say what other products are responsible for that drop.

Services revenue was the only area of growth in Apple's still-gobsmacking pie. The company took in $6.3 billion from its services business, up 24% from this time last year.

Apple expects a flush first quarter for its fiscal 2017. The company projects revenue of $76 billion to $78 billion, gross margins of 38% to 38.5%, and operating expenses between $6.9 billion and $7 billion in the next quarter.

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