Tech profits soared as the COVID-19 pandemic began to fade
Three tech companies that have amassed unparalleled influence while reshaping the way we live released strong earnings results in a flurry late Tuesday.
Although Apple, Microsoft and Google owner Alphabet Inc. make their money in different ways, the results for the April-June period served as another reminder of the clout they wield and why government regulators are growing increasingly concerned about whether they have become too powerful.
The massive profits pouring into each company also illustrated why they have a combined market value of $6.4 trillion -- more than double their collective value when the COVID-19 pandemic started 16 months ago.
APPLE
Apple’s first iPhone model capable of connecting to ultrafast 5G wireless networks continued to power major increases in quarterly revenue and profits for tech’s most valuable company.
With iPhone sales posting double-digit growth over the previous year for the third consecutive quarter, Apple’s profit and revenue for the April-June period easily exceeded analyst estimates. The Cupertino, California, company earned $21.7 billion, or $1.30 per share, nearly doubling profits earned during the same period last year. Revenue surged 36% to $81.4 billion.
As usual, the iPhone accounted for nearly half of Apple’s revenue. The iPhone 12, released last autumn, is shaping up to be Apple’s most popular model in several years, largely because it’s the first to work on the 5G networks that are still being built around the world. Apple’s iPhone sales totaled nearly $40 billion in the latest quarter, up 50% from a year ago.
Apple’s services division, the focal point of a high-profile trial revolving around the commissions it collects from iPhone apps, saw revenue climb 33% from last year to $17.5 billion. A potentially game-changing...
