Fifteen years ago this week, Apple launched the iPod, unleashing a wave of disruption over the music industry and reviving the fortunes of what was then a struggling computer company. Thanks in part to growth spurred by the iPod, Apple has never since posted a decline in annual revenues — until this week, when it revealed an 8 per cent drop in sales for 2016.

Now, it is looking to another digital media revolution to galvanise its business. With sales of its iPhone, iPad, Macs and even the Apple Watch in decline during its fiscal fourth quarter, the company sought to focus investors’ attention on the one bright spot in Tuesday’s earnings report: its services business.

These days, that means much more than just the iTunes store that powered the iPod. Revenues from online services such as the App Store, iCloud and Apple Music rose 24 per cent to a record $6.3bn, making it the company’s second largest source of income after the iPhone. That was faster than the 18 per cent growth that analysts at Piper Jaffray had predicted.