Earlier this month saw a raft of earnings calls from the major tech companies that drive innovation in the way we communicate and connect with the world. As a result, it is important to keep abreast of the latest results of the companies. So take a look with us, and see where the future points to.
Kicking off with the world’s biggest tech company, Apple reported a decline in sales, resulting in a shortfall of $1.6billion of expected revenue. However, the key opportunity for Apple is with the iPhone SE and developing markets, so expect a potential slowdown of innovation as they aim for bigger, but less wealthy markets.
While Microsoft fared a little better than Apple in terms of revenue, on profit they were down year on year by 25%. That’s quite a hit. It further shows the disinterest with the company’s tech offering and while their cloud offering didn’t grow as expected, it looks as though the move to become a ‘cloud company’ will pay off in the long term.
The world’s largest social network did much better than old-school Apple and Microsoft, with a 52% increase in revenue, compared to this time last year. Ad revenue is the driving force, which increased by 75%. Interestingly, a new C-class of stock allowed for Mark Zuckerberg, founder and CEO, to cement his control over the company and avoid power coups as seen at the likes of Apple and Twitter.
The new holding company for Google reported an increase in revenue of $3 billion, however, it failed to meet expectations, resulting in a 6% drop in share price immediately after the earnings call. Of course, Alphabet contains more companies than Google alone and invests a significant amount into innovations such as driverless cars, smart contact lenses, and genome mapping. With increases in revenue, we can safely expect to see innovation continue.