First decline in Apple sales in 16 years

Apple released information that it sold 51.2 million iPhones in the first three months of 2016, 61 million less sold a year earlier, yet still slightly better than had been predicted. This led revenue to fall by 13% to €44.75bn.

The iPhone, first launched in 2007, accounts for almost two-thirds of its revenue.

The biggest drawback for the company is the perception that its latest iPhones are not dramatically different from previous models in an increasingly competitive market that has also been hit by the world economic slowdown.

A decline in sales of Mac computers and iPads has also been noticed.

Apple's share price fell 8% in after-hours trading, most likely due to the company’s forecasting another revenue drop of 13% or more in the current third quarter.

A pledge to return an extra €44.21bn to shareholders by the start of 2019 did nothing to halt the decline in the stock's value in extended trading.

Apple said it is expanding its other interests "to help offset the smartphone sales decline".

Angelo Zino, a financial analyst with S&P Global Market Intelligence, said: "They need to come out with that next great product." "Apple absolutely needs to start diversifying their revenue base," he added.