May 9, 2021

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Apple and Facebook are making more huge profits


San Francisco: Apple and Facebook made huge profits on Wednesday in the latest sign of Big Tech’s strength as the sector faces scrutiny over its growing dominance during the pandemic.

The Silicon Valley giants have reported profits that have essentially doubled, with Apple making more than $ 23.6 billion (RM97 billion) and Facebook nearly $ 9.5 billion in the first three months of the year.

Apple rose through strong gains in iPhone sales and various products and services, while Facebook saw strong increases in digital advertising, reflecting the rise in people’s use of the Internet during the ongoing pandemic.

The results came after what an analyst called a quarter of the “beast” of Google and its parent company Alphabet, which with Facebook dominates online advertising, and a strong report from Microsoft, which is increasing cloud computing operations.

Facebook, Google, Amazon and Apple are among the tech giants that have thrived as the epidemic accelerates the transition to work, learning, shopping and socializing online.

The day before, Alphabet said first-quarter profit jumped to $ 17.9 billion from $ 6.8 billion in the same period last year while revenue jumped 34% to $ 55.3 billion, driven by gains in advertising and cloud computing services.

“Google saw a very mega-quarter with ads leading the way with an amazing 32% improvement in revenue,” said Patrick Moorehead of Moor Insights & Strategies.

“YouTube has grown an amazing 49% compared to last year, and I attribute that to increased YouTube watching and more YouTube TV subscribers.”

Meanwhile, Apple said revenue was the best ever in the second quarter of its fiscal year, up 54% to $ 89.6 billion.

Revenue from iPhones jumped 65% year-on-year to $ 47 billion, reflecting strong demand for new iPhone 12 models.

Apple has also reported gains in sales of iPad and Mac devices, wearables, accessories and its range of services from digital payments to music. – France Press agency