For Facebook, Amazon, Google and Apple, The Business is Booming
For many of America’s technology giants, business shows no signs of slowing down. Google, Apple, Facebook and Amazon reported profits and sales figures on Thursday. The record covers three months to September 30, and there was something in common with all those records: business is rapidly booming.
- On social media, the coronavirus surge is slowing down.
Facebook, also the owner of WhatsApp and Instagram, officially reported an average of 2.5 billion users in September across all of its platforms. That’s a 15% increase from September 2019, but only a 3% increase from June, when many people stuck inside turned to social media, resulting in a flood of activities. Facebook warned that the number of users in the United States and Canada declined, and told investors that this trend is expected to carry on.
- The decrease in users doesn’t seem to deter advertisers.
Amidst the shutdowns and lockdowns earlier this year, several businesses stopped their advertising initiatives. This move resulted in slower sales on Facebook. However, advertising spending has finally returned. Google’s revenue increased 14% year-on-year. Twitter also saw a 14% rise in revenue, while Facebook jumped at 22%. The growth is expected to further accelerate.
- Amazon is still king.
The company is clearly one of the best winners even during the pandemic. Amazon sales increased at $96.1bn in the 3 months leading to 30 September. That is a 37% increase from the same period back in 2019. Its profits hit $6.3bn, almost three times 2019’s total.
The increase was fueled by its digital business in North America, as people turned to online shopping during lockdown. Amazon’s cloud computing and advertising businesses also saw huge gains.
The growth comes with costs, though. The company said it recorded $2.5bn coronavirus-related expenses. Its own reputation has also taken a big hit, with lots of protests against different policies and working conditions.
- The next iPhone is going to be huge.
Apple sales reached $64.7bn, showing a bit of increase from a year ago, beating the expectations of analysts, as iPad and Macbook sales surged. However, shares in the company sank in the after-hours trading. This is because investors digested a 20% decline in iPhone revenue. The iht was evident in the Greater China region, where apple usually generates around 20% of its sales, and these sales decreased by nearly 30%. Apple is confident that buyers were simply holding out for the latest iPhone model, which went on sale much than in the previous years.
- What comes after success celebrations?
Discussions focused on profits and sales, not on the controversies surrounding them. Clearly, their financial successes will only make them even more of a target for criticisms, as calls for stricter regulation gained traction in the United States. At the end of the day, the dominance of technology in all aspects of our lives will continue to raise eyebrows.