According to the Nikkei Asian Review, iPhone manufacturer Foxconn have posted their first ever annual sales decline.

The company posted revenues of approximately $136.38 billion USD, a drop of 2.81% from 2015.

The decline has been attributed to the reduced demand from Apple, for iPhones and a broader saturation of the smartphone market.

Apple is Foxconn’s no.1 client and accounts for more than 50% of its revenue. Unfortunately for them, reports last month indicated that Apple was looking to trim the production of iPhones by about 10% as a result of sluggish sales for both new and aging models.

Notably, they aren’t the only iPhone manufacturer experiencing a downturn. Pegatron, also involved in the assembly of last year’s iPhone 7, posted a 27.43% drop in year-on-year revenue for December.

Analysts (and Apple stockholders) are hopeful than an injection of innovation with this year’s iPhone 8 will help Apple rally the company’s financial fortunes.

The iPhone 8 is believed to offer a flexible OLED display with a bezel-free design and an all-glass casing.

However, many are still skeptical.

“There’s no question Apple’s best days are behind it,” said Bernstein analyst Toni Sacconaghi earlier this year.