Tech Giants Consolidated Their Power During the Corona Crisis

On Friday night, four large tech companies, Apple, Alphabet, Amazon, and Facebook, presented their second quarterly figures. Surprisingly, everyone made billions of dollars during the Corona pandemic and they all exceeded expectations. However, for the first time, Google’s parent company, Alphabet’s revenues fell. Let’s take a look at the revenues of these tech giants

Just one day after their bosses had to justify themselves during a historic US Congress hearing, the four big tech companies released their quarterly figures at night. It can be seen that their business models demonstrate enormous resilience amidst the corona crisis. Amazon benefited massively from the online shopping boom in the past quarter, Apple surprised with a huge plus in the iPhone business. Online advertising is a little less rosy as Google recorded a drop in sales for the first time and Facebook grew much more slowly than usual. But everyone continued to make billions in profits and exceeded market expectations.

As the clear winner of the crisis, Amazon stands out from the other tech heavyweights. The world’s largest online retailer Amazon’s revenue soared 40% to $ 88.9 billion in the second quarter since the United States closed three months ago. At $ 5.2 billion, the profit was roughly twice as high as a year earlier, even though Amazon spent $ 4 billion on corona measures such as protective equipment, cleaning, and premiums in the quarter.

In addition to online trading, the cloud platform AWS also remained a lucrative business for Amazon, among other things, because the increased number of homeworkers increased demand for online services.

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At Apple, iPhone sales rose 1.7% to $ 26.4 billion. Analysts had only expected revenues of $ 21 billion. Apple also managed to increase iPhone sales by a good 11% while the smartphone market overall dropped by 16%. The new edition of the cheaper iPhone SE model played an important role. Apple’s consolidated sales rose eleven percent to $ 59.7 billion last quarter which is a record for the June quarter. Profits grew twelve percent to $ 11.25 billion.

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Facebook Revenues Drop Yet Users Increased

The Corona crisis along with a boycott of Facebook by advertising customers to protest against the hate speech on the platform, Facebook’s business grew significantly slower than earlier. Last quarter, revenue increased by 11% to $ 18.8 billion. There was similar growth in the first weeks of July. Before the crisis, growth rates of over 20% were the order of the day in Facebook’s business.

The Facebook group under the leadership of the 36-year-old CEO, Mark Zuckerberg, earns his money almost exclusively from advertising and in the corona crisis, many small companies, in particular, placed fewer ads. In July, more than 1,000 advertisers, including heavyweights like Coca-Cola and the consumer goods giant Unilever, followed the boycott calls by civil rights groups and temporarily stopped advertisements on the world’s largest online network.

At the same time, the number of users on Facebook continues to grow rapidly. Another 100 million monthly active users were added in the past quarter and now there are a total of 2.6 billion users. 3.14 billion users accessed at least one Facebook product because the group also includes the photo platform Instagram and the WhatsApp chat service. That was an increase of 150 million within three months.

Google’s Sales are Falling for the First Time – Tech Giants Revenues Amidst Corona

Meanwhile, Google’s parent company Alphabet was hit by higher costs and falling advertising revenue. Profits plummeted from $ 9.95 billion to $ 6.96 billion. Alphabet’s money-making machine, Google’s advertising business, suffered during the corona crisis. For the first time in the company’s 22-year history, revenue declined eight percent to $ 29.9 billion. However, Alphabet emphasized that the advertising business had recovered at the end of the quarter.

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Since the time the four biggest tech giants of the Industry were stung by a slowdown in spending, they reported a combined $28 billion in profits on Thursday driving the tech giants revenues figures to an all-time high.