Technology giants like Apple, Amazon, Microsoft, and Google parent company Alphabet have reported record profits in their third-quarter earnings reports, defying the economic downturn caused by the ongoing pandemic.
Apple, the world’s most valuable company, reported a 20% increase in revenue to $64.7 billion, driven by strong sales of the iPhone 12 and other devices. The tech giant also saw growth in its services and wearables categories, with revenue reaching $14.5 billion and $7.9 billion, respectively.
Amazon, the e-commerce giant, saw its revenue surge by 37% to $96.1 billion in the third quarter, as the pandemic accelerated the shift towards online shopping. The company’s cloud computing division, Amazon Web Services, also posted strong growth, with revenue increasing by 29% to $11.6 billion.
Microsoft reported a 12% increase in revenue to $37.2 billion, driven by strong demand for its cloud computing services and productivity tools. The company’s Azure cloud platform saw revenue growth of 48%, while its Office 365 productivity suite saw a 21% increase in revenue.
Alphabet, the parent company of Google, reported a 14% increase in revenue to $46.2 billion, driven by strong growth in its advertising business. The tech giant also saw growth in its cloud computing division, with revenue increasing by 45% to $3.4 billion.
The strong performance of these tech giants comes as a surprise, given the economic challenges posed by the pandemic. Many businesses have been forced to close or operate at reduced capacity, leading to widespread job losses and financial hardships for many individuals.
However, the pandemic has also accelerated the shift towards digital technologies, as people rely on online services for work, school, and entertainment. This has benefited tech companies that provide essential services such as e-commerce, cloud computing, and productivity tools.
Despite their record profits, tech giants continue to face scrutiny over their market dominance and business practices. Critics argue that these companies have become too powerful and are stifling competition in the tech industry. Lawmakers and regulators have launched antitrust investigations into the practices of these tech giants, with some calling for stricter regulations to curb their power.
Overall, the third-quarter earnings reports of tech giants highlight the resilience of these companies in the face of economic challenges. As the world continues to grapple with the pandemic, tech companies are playing a crucial role in providing essential services and driving innovation in the digital economy.