Apple's iPhone sales are not performing as expected, making the company's annual profits to decline for the first time in 15 years.
Apple has sold 45.5 million iPhones in third-quarter of 2016, a 5 percent decline from 2015. And as of the company's performance, Apple told investors that it has sold $215.6 billion worth of iPhones, Watches, Mac computers and other of its products from in 2016 to September 24th. That is a decrease from $233.7 billion in 2015.
One of the reasons for the declining performance is because Apple has to struggle with supply issues for the iPhone 7, which is by far Apple's most important product that accounts for two-thirds of all sales in 2016. The decline in sales also hit the company's profits, which fell 14 percent to $45.7 billion.
The result affected Apple's shares in the stock market. It closed at $118.25 on Tuesday - about the same level they were in 2015.
By having a decline on one of the most recognizable brand in the world, analysts are concerned that Apple may have just reached its peak.
Despite the decline in sales and profits, CEO Tim Cook said: "Our strong September quarter results cap a very successful fiscal 2016 for Apple. We're thrilled with the customer response to iPhone 7, iPhone 7 Plus and Apple Watch Series 2."
While the iPhone has transformed the mobile industry, Apple is facing an evergrowing competition from the likes of Google with its first branded smartphone, the Pixel, and rivals from cheaper brands targeting key markets like China.
