Key iPhone supplier Foxconn Technology Group posted its first annual sales decline since it went public in 1991, thanks to slowing sales of the iPhone, according to Nikkei.
For full year 2016, Foxconn posted revenues of roughly $136.38 billion, down 2.81 percent from a year ago.
Apple accounts for half of Foxconn’s parent Hon Hai Precision Industry’s business, and slowing demand in the saturated smartphone market has resulted in less orders.
However, sales were encouraging for the December quarter, up 9.76 percent year over year, which can be attributed to demand of the iPhone 7 Plus, Nikkei noted. Analyst Vincent Chen noted a total of 207 million iPhones were shipped in 2016, down from 236 million in 2015.
Pegatron, a smaller Apple supplier and Foxconn rival, saw its revenue fall 27 percent for December from a year ago. Not only did Apple suppliers experience a drop, but Apple itself also saw its first revenue dip since 2001 and first decline in iPhone sales since 2008.
Analysts expect iPhone shipments to rise in 2017, with the release of Apple’s iPhone 8. It’s thought to be a radical change from the iPhone 7, which was simple upgrade to the iPhone 6s.