Results of technological giants: Apple, Facebook, Amazon

During yesterday's trading, the results of large technology companies, which have been driving stock market growth since the beginning of the pandemic, finally arrived. The most popular companies among investors generally reported better results, but even that was not enough to grow as their shares and negative sentiment prevails at the end of the week. Let's take a look at how individual companies reported and why we are not witnessing a greater buying appetite.

 

Apple

The company's total revenue grew $ 64.7 billion in the last quarter, exceeding expectations by approximately $ 1 billion. Sales declined for the second consecutive quarter. The company's net profit fell more than 7% to $ 12.6 billion from $ 13.7 billion last year. The company is largely dependent on iPhone sales, which fell 21%, largely due to the move of the new iPhone 12, well below analysts' expectations of 16.7%.

 

As can be seen in the table, the decline in product sales in China is largely worrying, despite the full opening of the local economy and the gradual recovery of demand. Sales in China fell 29% to $ 7.9 billion. However, the new iPhone 12 with 5G technology should perform very well in China. In other regions, sales more or less stagnated.

 

Looking at the development of product sales, a significant drop in sales of iPhones can be seen, however, the company managed to increase sales from Macs, iPads, and services. The services segment may also grow significantly during the next quarter as Apple launches Apple One and Fitness +. Although Apple did not release any outlook due to the ongoing pandemic, the last quartal is expected to look better, thanks to new products and the upcoming Christmas holidays, or Black Friday in the USA.

 

Graph: Apple sales by region and sales segment (Source: apple.com)