Tech giants Facebook and Apple double their profits
Apple said on Wednesday that its profits more than doubled to $ 23.6 billion in the last quarter as people adopted its latest iPhones and bought more of its other products, striking results for what is already l most valuable company in the world.
Apple said its revenue rose 54% to $ 89.6 billion, a record for the March quarter that meant Apple sold more than $ 1 billion on average every day. The rapid growth is in part explained by slower sales in the same three-month period last year when the pandemic first took hold, but the quarter was still strong and far exceeded expectations analysts. Apple’s sales have grown sharply in each of its product categories and in each of its regions of the world.
As usual, the main driver of Apple’s success was the iPhone. Apple said iPhone sales rose 66% to $ 47.9 billion, its biggest increase in years. The company’s flagship has accounted for more than half of its total sales for years, but more recently Apple has attempted to branch out into other businesses, which has caused iPhones’ revenue share to drop to 41% in the last few years. during the quarter that ended on September 30. Apple unveiled the iPhone 12 in October and sales have jumped. In the last quarter, iPhones accounted for 54% of Apple’s revenue.
Apple said iPad sales increased 79% and Mac sales increased 70%, a success that was in part due to more people spending their time on computers while they worked and were learning at home. Sales of Apple’s wearable devices, including Apple Watch and AirPods, grew 25%, and its services division, which includes app sales and subscriptions to iCloud and other services Apple, increased by 26%.
Apple said on Wednesday it would buy back an additional $ 90 billion of its own stock, as part of its continued program to return a large chunk of its profits to shareholders.
The huge profits are further proof of the growing dominance of the biggest tech companies. Also announced this week: Microsoft’s profits rose 44% to $ 15.5 billion; Facebook profits nearly doubled to $ 9.5 billion; and the profits of Alphabet, Google’s parent company, more than doubled to nearly $ 18 billion. Amazon releases its results Thursday.
Apple’s continued growth is part of an increasingly close examination of its power. The company faces antitrust investigations from regulators around the world and, on Monday, Apple is set to face a lawsuit against Epic Games, one of the world’s largest game makers, for its control on the App Store.
Apple shares, which are worth around $ 2.25 trillion, rose nearly 2% in after-hours trading.
Facebook is almost doubling its profits and its revenue growing 48% as the technology booms.
Facebook said on Wednesday that revenue rose 48% to $ 26.2 billion in the first three months of the year, while profits nearly doubled to $ 9.5 billion, highlighting how the social network had continued to benefit from the pandemic.
Ad revenue, which makes up the bulk of Facebook’s revenue, rose 46% to $ 25.4 billion. Almost 3.5 billion people now use one of the Facebook apps every month, up 15% from the previous year.
The results follow a successful financial performance in 2020, as the pandemic pushed people indoors to their computers and other devices – and to the social network and its associated apps like Instagram, WhatsApp and Messenger – in still numbers. increasing. Facebook saw high levels of users and revenue, and its services were in such high demand that engineers sometimes struggled to “keep the lights on.”
Yet Wall Street is now expected to take a close look at Facebook’s advertising activity. Apple on Monday rolled out an update to its mobile software with a new feature that asks people if they want to opt out of being followed by advertisers outside of apps like Facebook. If people choose not to be tracked, it could hurt Facebook’s business, which relies on user data to target advertising.
The situation brought Facebook CEO Mark Zuckerberg and Apple CEO Tim Cook into conflict. On Tuesday, Mr. Cook tweeted that Apple introduced the privacy feature because “we’ve always believed you should be in control of your data.”
Facebook said on Wednesday it expected challenges for its advertising this year “due to regulatory and platform changes, including the recently released iOS 14.5 update, which is expected to start making an impact in the second quarter. . ” The company added that the change was incorporated into its financial forecast.
“We had a good quarter helping people stay connected and businesses grow,” Zuckerberg said in a statement. “We will continue to invest aggressively to deliver new and meaningful experiences for years to come, including in newer areas such as augmented and virtual reality, commerce, and the designer economy.”
In recent months, Facebook has also faced constant criticism of the content circulating on its site, especially after former President Donald J. Trump used social media to urge his supporters to quash the results of the presidential election, prompting a crowd to storm the Capitol. January 6th. Facebook cut Mr. Trump off the platform after the riot, although a final decision on whether to keep him off the site indefinitely has not been made.