AKIPRESS.COM - Apple Inc. posted its first annual revenue decline in 15 years, but projected a return to growth in the current quarter behind strong sales of its new iPhone 7, WSJ said.

Apple has grown to be the most valuable company in the world over the past decade on the tremendous success of the iPhone. But that formula proved less effective in the past year amid lukewarm sales of the iPhone 6S models and slowing growth in smartphone sales world-wide, especially in China, Apple’s biggest growth market in recent years.

For its fiscal fourth quarter, ended Sept. 24, Apple reported its third consecutive decline in revenue and profit. Net income fell 19% to $9 billion, or $1.67 a share, from $11.1 billion, or $1.96 a share, in the same period a year earlier. Analysts polled by Thomson Reuters had expected earnings of $1.65 a share.

Revenue fell 9%, to $46.9 billion, mostly ahead of the launch of the iPhone 7, which went on sale a week before the end of the quarter.

The iPhone accounted for 63% of Apple’s revenue in the just-completed fiscal year, but growth in the smartphone market has slowed recently and consumer buying habits are changing. In the fourth quarter, Apple said it sold 45.5 million iPhones, 2.5 million fewer than a year earlier.

ut Apple projected revenue of $76 billion to $78 billion in the current quarter, which includes the holiday-shopping season and sales of the new phone. That would be an increase from $75.9 billion in the same period a year earlier. Before Apple’s announcement, analysts had been expecting revenue in the current quarter of $74.9 billion, according to FactSet.

Apple also projected gross margin, a closely watched measure of profitability, of 38% to 38.5%, ever so slightly up from 38% in the just-completed quarter.

“We return to growth in the quarter despite the supply shortages that we’ve currently got,” said Apple Chief Executive Tim Cook.

Mr. Cook said the response to the iPhone 7, released in September “has really been off the charts.” He said there are waits for some models, particularly the high-end iPhone 7 Plus. Neil Cybart, an independent analyst who follows Apple, said there is an eight-week wait for some models.

Mr. Cook also touted improvements in the company’s services business, which includes Apple Music, iTunes and the App Store, where revenue grew 24% from a year earlier. Apple Music revenue rose 22%, Mr. Cook said, calling services “our huge highlight in the quarter.”