Apple and Google have both reported lower-than-expected profits and revenue for the last quarter of 2022, while online retailer Amazon is bracing for uncertainty in the months to come. Apple, the largest company by market value, pointed to the restrictions imposed in China due to the COVID-19 zero policy, which disrupted its production and delivery capabilities, leading to a 5.4% decrease in revenue from a year prior. Google’s parent company, Alphabet, cited a slump in advertising sales for its decrease in profit, though the figure still amounted to $13.6bn.
As central banks raise interest rates to curb inflation, consumers are also becoming more cautious with their spending, adding to the challenges faced by the tech sector in the slowing growth and inflation-ridden economy. Tech companies, including Google and Amazon, have announced plans for significant layoffs, but Apple has no such plans, with CEO Tim Cook saying the company is “investing in innovation and people.”
Amazon’s sales for the last quarter of 2022 were $149.2bn, however, profits plummeted to nearly zero from $14.32bn the previous year. CEO Andy Jassy stated that while the company faces an uncertain economy in the short term, they remain optimistic about long-term opportunities. Meanwhile, Facebook, owned by Meta, reported a 1% year-on-year drop in sales, but CEO Mark Zuckerberg was positive about the future as the daily number of Facebook users hit 2 billion for the first time.
Apple CEO Tim Cook also expressed optimism, saying the company’s supply chain difficulties have been resolved and production is back on track. Additionally, the company announced that it now has over 2 billion active devices, including iPhones, iPads, Macs, and more, which is expected to drive long-term revenue growth through digital subscriptions and advertising.
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