Apple's profits fall for the first time since launch of iPod in 2001

Apple has posted its first decline in annual revenue and profit since 2001, as the company looks for a way to offset falling sales of its flaghship iPhone. The tech giant has never posted a decline in annual revenues since the release of the iPod - until this week, when Apple revealed an 8 per cent drop in sales to $215 billion (£176 million) for 2016. The decline in sales dragged the company's profits down by 14 per cent to $45.7billion. The drop in sales was mostly down to declining sales of the iPhone, which accounts for two-thirds of Apple sales. Apple sold 45.5 million iPhones in the quarter, which while better than expected, compares to 48 million sold this time last year.