Apple's mobile phone, the iPhone, accounts for nearly two-thirds of sales, with its tablet, the iPad, generating another 10%. Its Mac computer lineup (including the iMac desktop of the MacBook laptop) and service offerings (including the iTunes Store, iCloud, and Apple Pay mobile payment) each contribute another 10% of revenue. Other products -- such as the Apple Watch and Apple TV -- are responsible for the remainder.
Apple's products run on two operating systems. The mobile products are on iOS, now in its 10th generation, and the computers run on OS X. The company generally updates its operating systems once a year.
The company makes some of its products at facilities in Ireland and the US, but most manufacturing is handled by third party contractors, such as Hon Hai Precision Industry, also known as FoxConn, operating in Asia.
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Apple sells its products through its own retail stores and website, as well as through a direct sales force. In addition, the company distributes through indirect channels, such as third-party retailers, resellers, and cellular network carriers such as Verizon, AT&T, Sprint, and T-Mobile. Indirect channels account for some 75% of Apple's total revenue.Apple had been on a remarkable run of increasing revenue and profit for the past decade or so, but it saw declines in both measures in fiscal 2016 (ended September). The company reported revenue that year of about $216 billion, down 8% from the prior year. Sales of the iPhone, iPad, and Mac all decreased, but the company was particularly hit by an 8% drop in unit sales of the iPhone and a 12% drop in iPhone net sales. The results come amid a slowdown in the smartphone market in general (especially in China, which had been Apple's largest growth market) and a decline in interest in the iPhone particularly as customers wait for a more substantial redesign (possibly late in 2017 for the iPhone's 10th anniversary).
The Americas market, which includes the US, accounts for 40% of Apple's sales. Greater China and Europe each contribute about a quarter of revenue.
The company has nearly 500 Apple retail stores across the US, as well as in some 20 other countries; China and Canada are the largest retail store markets outside the US.
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