October 26, 2020

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Tech giants perform better than expected in “coronakwa”…

Tech giants perform better than expected in "coronakwa"...

Major U.S. Internet and technology companies Apple, Facebook, Amazon and Alphabet (Google) performed better in the quarter than analysts expected. That’s according to financial results released by the four tech giants on Thursday.

The iPhone Manufacturer Apple 11 percent in the third quarter of the fiscal year. Not only did the company sell more phones, but it also saw significant growth in its Mac computing division in a neighborhood where many people worked at home. Sales of iPads, services and the collection category, which includes the Apple Watch and wireless headphones, also rose.

Apple posted total revenue of US59.7 billion, well above analysts’ expectations. Below the line, a profit of 11.3 billion US dollars was ultimately left.

Facebook Social media use increased in the second quarter as people across much of the world faced lockdowns. Both the number of daily active users and the monthly active users increased by 12 percent compared to the previous year.

Photo: Amaury Miller

Advertising revenue, Facebook’s main revenue, rose 10 percent. Facebook’s total revenue was 18.3 billion U.S. dollars, up from 16.6 billion U.S. dollars a year earlier. Below the line was a profit of 5.2 billion U.S. dollars, a doubling compared to the previous year.

Web shopping giant Amazon benefited greatly from the many online shoppers during the countless Coronalockdowns in the world in the second quarter. Consumers tried en masse to avoid physical stores.

Quarterly revenue rose 40 percent year-on-year to nearly .89 billion U.S. dollars. Amazon also doubled its net profit to 5.2 billion U.S. dollars.

AlphabetHowever, Google’s parent company reported a drop in sales in the second quarter. Alphabet’s revenue was .38.3 billion, up from 38.9 billion U.S. dollars a year earlier. Still, that result is still better than analysts expected. In particular, net profit was significantly lower at just under US7 billion US dollars, with 9.9 billion US dollars remaining in the second quarter of the previous year. Advertising revenue declined as many companies cut advertising budgets, such as cost savings.

Additional revenue from the cloud business and subscriptions to YouTube, for example, generated a counterweight. During the closures, people sought online entertainment, but many companies also switched to homework that Google could benefit from.

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