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Big Tech’s Big Earnings and Why the Pandemic was a Factor
30 Oct, 2020
5 min read
Ever since the world turned itself off, the internet has truly come into its element. We shopped online, searched how to make bread, streamed out the streaming services, and even bought new devices for education and more.
All of that made the recent earrings call from Apple, Google, and Amazon quite positive.
YouTube, Google’s product boasted $5 billion in ad revenue. Personally, I don’t skip ads anymore. I have endless time to stare at YouTube, after all. YouTube’s value is beyond the money though. It taught us how to bake bread when we couldn’t go to grocery stores and it is keeping us endlessly entertained as we stay at home and safe. Thank you, YouTube.
Amazon’s Prime Day generally happens in July but due to the pandemic, it happened in October this year. That did not dampen the revenue it made. It raked in $6.33 billion (net income) in a quarter which is triple the amount of the same quarter last year. All of this is, of course, thanks to the pandemic. Everyone who didn’t buy home office equipment at the beginning of the pandemic realized that this is going to last much longer and had to make the investment. That is only one area of online shopping, but you get the picture. Pretty much all shopping has moved online and Amazon has been the one to turn to because of its significant presence, to say the least.
And lastly, Apple had a decent quarter of Mac and services with $64.7 billion in revenue. No surprises there. With work and education happening from home, shopping for new Macbooks and iPads have increased. The limited use of a laptop from when we had computers at work has gone up significantly. All the kids in a household need a device to study from at the same time as the parent needs to work. This has led to more refreshing old iPads or buying additional ones for the household. Though the iPhones came in much too late to be counted in the earnings, the two new watches, Series 6 and SE have contributed to the figure. Apple has also beefed up the pricing line of the products, which definitely helps in the purchase decision.
All in all, the pandemic seems to have helped tech score much more than normal circumstances did. However, it has also pushed the companies to offer more bang for people’s buck and that is not something we saw every year.
I am not about to say that the pandemic is a good thing to happen, but in the light of all things 2020, the biggest tech companies coming out thriving is a plus for the customers, the investors, the supplies, the employees, and everyone involved with them in any way.
If you are in the market for any new device from a phone to a smart home, this year’s products and services are actually worth the money. But striking a balance between what you need and how much you pay for it is always delicate.
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