Apple is expecting a net profit of $5.1 billion on revenue of $68.9 billion for the fiscal year ending June 30, 2018.
The company also posted a 9% decline in sales and profit, and a 2% drop in net income, according to its annual financial report filed with the Securities and Exchange Commission.
Apple’s revenue is projected to rise 16% year-over-year to $49.3 billion in 2021, but it also expects a $4.4 billion reduction in the size of its profit.
In addition, the company expects a 5% decline from revenue from overseas markets, a 1% decline to earnings from new products and a 1.4% increase in sales of its premium products.
Apple CEO Tim Cook said the company will deliver on its promise to make its products and services available in over 190 countries by 2020.
“We’re making great progress in our efforts to meet the needs of the growing global user base, and our fiscal year 2018 financial results confirm this commitment,” Cook said in the filing.
“However, we remain focused on the critical areas that drive growth, such as iOS, macOS, iBooks, WatchOS, and the WatchOS Pro software.
We will continue to deliver a more personalized experience for our customers, while taking steps to improve efficiency and performance.
In our efforts, we will continue focusing on product development and innovation to help drive greater productivity, while delivering greater value to our customers.”
Cook added that Apple is investing more in innovation and the company has “greatly expanded our team of people working on innovative new ideas.”
In addition to the revenue loss, Apple reported a 7% drop from its original revenue forecasts.
Cook said revenue from Macs, iPhones and iPads will be “down, but not by that much,” and “not by as much as we’d like.”
However, he did say that Apple plans to increase the number of Macs it sells from a little more than 4 million to more than 6 million by the end of the year.
Apple is expected to announce its quarterly earnings on Wednesday.