Apple's revenue has fallen for the first time since 2003, financial documents from the company have revealed.
Despite the drop in revenue the company's sales hit $50.56 billion (£34.39 billion) during the second quarter of 2016. For the same period last year the company had sales of $58 billion (£38 billion).
According to the company's accounts for the four month period its quarterly profit fell from $13.5bn (£9.25 billion) to $10.5 billion (£7.19 billion).
Apple boss Tim Cook said the company was happy with its performance and that it had performed well "in the face of strong macroeconomic headwinds".
The Cupertino-based company also announced it would be giving an extra $50 billion (£34 billion) to its shareholders, bringing its total dividend pot to $250 billion (£171 billion).
Apple's shares fell eight per cent in the first hours of trading but have since stabilised.
One of the main reasons for the drop in sales was the number ofiPhones shipped to customers. During the quarter Apple sold 51.2 million iPhones, a drop of 10 million on the same period last year. In recent week's the company has released its latest handset, the iPhone SE.
China provided a particular weak spot for the company as it saw sales in the region fall by 26 per cent compared to the same period last year.
The financial results from Apple are not completely surprising. In January the company scaled back the number of orders for iPhones that it was sending to manufacturers in China.
At the time, reports claimed that Chinese suppliers were being forced to lay-off staff as the demand for the phones fell.
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