Apple supplier Hon Hai has chalked up its first fall in revenues in more than two decades on the back of the drop in iPhone sales last year.

Taiwan-based Hon Hai, also known as Foxconn, said that annual sales fell 2.8 per cent to NT$4.36tn ($137bn). It is the contract manufacturer’s first fall in revenues since 1994, according to Bloomberg data.

Apple, which accounts for about half of Hon Hai’s sales, said that sales dropped by 7.7 per cent in the year to September 2016, the first decline in 15 years and a sharp reversal from the 27.9 per cent growth rate the year before. Smartphone growth is stalling more broadly while Chinese manufacturers — which are less reliant on third party contractors such as Hon Hai — are taking market share from Apple and Samsung.