17.4 C
Friday, May 24, 2024
HomeBusinessApple and Amazon have increased sales despite higher pricing.

Apple and Amazon have increased sales despite higher pricing.

Amazon and Apple’s revenues surpassed expectations, encouraging investors that the tech giants will be able to withstand global economic slowdowns.

Amazon predicted in a trading update that increased Prime membership costs would benefit its bottom line, while Apple reported that demand for its all-important iPhone remained robust.

Apple and amazon are too large to be unaffected by symptoms of a worldwide economic slowdown, according to scott kessler, global sector leader at third bridge.
Apple and amazon have increased sales despite higher pricing.

Despite price increases at a rapid rate, both companies reported improvement in controlling operating expenses.

The improvements boosted stock prices.

Apple and Amazon’s quarterly updates are closely monitored as markers of how consumers are reacting to the current economic climate.

The US economy declined for the second consecutive quarter, a milestone that in many nations would be labeled a recession, but not in the US, which relies on other data to make that determination.

Our June quarter results continued to illustrate our ability to effectively manage our business despite the challenging operating environment,” said Apple’s chief operating officer Luca Maestri, adding that the company expected growth to resume in the coming months.

However, both companies sales growth has slowed significantly from the previous year, and their earnings have decreased.

Apple’s profits decreased by about 11 percent year-over-year to $19.4bn (£15.9bn) due to Covid-19 lockdowns in China, while Amazon lost $2bn due to changes in the value of its stake in electric car manufacturer Rivian Automotive.

Tim Cook, the CEO of Apple, stated that the company was observing a “mixed bag” of economic signals, with iPhone demand remaining stable but digital advertising declining.

“When you consider the number of obstacles we faced during the quarter, we feel pretty satisfied with the growth we achieved,” he said.

Between April and June of this year, sales of Apple’s products and services increased by 2 percent year-over-year to $83 billion. As supply restrictions hindered sales of other products, iPhone sales continued to drive the company’s growth.

Its services sector, which includes Apple Pay and its music and television streaming services, also climbed by 12 percent.

Amazon reported a 7 percent increase in revenue to $121.2 billion despite a decline in its e-commerce sector in previous months. For a second consecutive quarter, online sales decreased by 4 percent.

However, the firm continues to be protected by the growth of its cloud computing segment, AWS, which witnessed a 33 percent increase in sales.

Amazon alarmed investors in the spring due to a decline in online sales and a warning that it had overspent on hiring and adding warehouses in a wager that pandemic-era buying trends would persist.

This time, however, it presented a more upbeat view.

“Despite persistent inflationary pressures in fuel, energy, and transportation costs, we’re making headway on the more controllable costs we mentioned last quarter,” said chief executive Andy Jassy. “In particular, we’re boosting the productivity of our fulfillment network.”

Amazon predicted that its e-commerce sales would be particularly sluggish because Prime Day, when discounts generally fuel a boom in purchasing, was pushed from June to July.

“Big tech’s earnings season has been a mixed bag, but Amazon has proven that the strong can thrive in even the most challenging conditions,” said Laura Hoy, equity analyst at Hargreaves Lansdown.

Apple and Amazon are too large to be unaffected by symptoms of a worldwide economic slowdown, according to Scott Kessler, global sector leader at Third Bridge.

However, their scale gives them a distinct advantage in navigating these obstacles, particularly when it comes to negotiating rates.

“Apple has done an outstanding job managing those expenses; it helps that they’re one of the largest buyers,” he said.

However, Christie Pitts, a general partner at the venture capital firm Backstage Capital, told that Amazon’s earnings were impacted by inflation “since customers have less disposable income to spend on impulsive items.”


This site uses Akismet to reduce spam. Learn how your comment data is processed.

Most Popular

Resolution commemorating 1995 Srebrenica genocide passes UN

Despite the vehement opposition of Bosnian Serbs and Serbia, the United Nations General Assembly has voted to establish an annual day of remembrance for the 1995 Srebrenica genocide.  On Thursday, the resolution, which Rwanda and Germany authored, was approved by 84 ballots and opposed by 19, with 68 abstentions. It designates July 11 as the International Day of Remembrance of the Srebrenica Genocide.

West Ham worry Lucas Paquetá’s career may end if he breaks betting rules

West Ham is deeply concerned about the potential ramifications for Lucas Paquetá's career if he is found guilty of intentionally receiving a booking. The midfielder has been accused by the Football Association of violating betting regulations, a charge that, if proven, could lead to the termination of his career. The allegations against Paquetá, which are of a grave nature, involve him intentionally receiving yellow cards in matches against Leicester, Aston Villa, Leeds, and Bournemouth in 2022 and 2023. The FA, in a statement, has raised suspicions that the Brazil international was directly attempting to influence the progress, conduct, or any other aspect of these matches by intentionally seeking to receive a card from the referee for the improper purpose of affecting the betting market for one or more persons to profit from the booking.

Vennells told not to make Post Office top page news

The Post Office withdrew a comprehensive assessment of sub-postmasters' convictions due to concerns that it would generate "front page news."  In 2013, Paula Vennells, the former head of the Post Office, proposed that convictions dating back a decade could be examined.  However, it was disclosed at the inquiry into the Horizon IT scandal on Thursday that ex-Post Office media chief Mark Davies informed Ms. Vennells that it would "fuel the story and turn it into something bigger than it is" in an email.

Biden cancels $7.7bn more student debt for 160,000 debtors

President Joe Biden of the United States has declared that his administration will cancel $7.7 billion in student debt for an additional 160,000 borrowers.  According to the US Department of Education, Wednesday's most recent action has increased the number of individuals who will benefit from the president's debt relief initiative to 4.75 million.

Recent Comments