Apple has reported its first fall in revenues for 13 years after iPhone sales dropped for the first ever time.
The tech giant posted revenues of $50.56 billion (£34.39bn) for its second quarter, down nearly $8bn from the same period last year. It comes as iPhone sales dropped by 10 million in a year, from 61.2 million to 51.2 million.
Quarterly profits fell $3bn to £10.5bn, but the company announced it would return $50bn to shareholders through its share buyback scheme and a 10% increase in dividends.
The news sent Apple’s shares down 8%, meaning they have fallen by a fifth over the past year.
In January, Apple warned that iPhone sales could fall for the first time since the product first launched in 2007.
Apple chief executive Tim Cook claimed the quarter was positive “in the face of strong macroeconomic headwinds”.
Apple said growth in China had a particularly negative effect, with sales falling 26%. China has been a source of strong growth since Apple expanded its business there. However, along with rival Samsung, it has come under increasing pressure from much cheaper Chinese handsets.
The area of Apple’s business which includes the App Store, Apple Music and Apple Pay saw growth of 26% on last year, far outpacing any other part of the company. But that level of growth could also be under threat following the introduction of new laws in China, which means any content available to the Chinese public must be stored on serves based in China.