Tech Companies Exceed Expectations in 1Q21, 2Q21By MBN Staff | Thu, 04/29/2021 - 16:00
It is quarterly reporting season.
It is no surprise that the revenues of most tech companies, especially the big ones, have been driven by the pandemic. In their latest quarterly reports, companies showed that this trend continued. Among the latest to demonstrate this is Apple, which beat analysts' expectations in its 2Q21 by reporting net sales of US$89.5 billion, 53.6 percent higher than the previous period. Sales of the iPhone grew by 65.5 percent to US$47.9 billion, Mac sales rose 70 percent to US$9.1 billion and iPad sales increased 78.8 percent to US$7.8 billion. In its report, the California-based company said the iPhone 12, which recently received the purple color in the family, was eagerly received as more customers migrate to 5G models.
The good uptake of its M1 chip and the boost in long-distance education have been key factors driving Mac and iPad sales. “Both of those things happening at once really supercharged the Mac sales. The last three quarters on Mac have been the strongest three quarters ever in the history of the Mac,” CEO of Apple Tim Cook told Reuters this week.
Facebook also beat market expectations for quarterly revenue. Its total revenue, which primarily consists of ad sales, amounted to US$26.1 billion in 1Q21, beating analysts’ average estimate of US$23.6 billion, according to Refinitiv. Monthly active users of the platform run by Mark Zuckerberg also increased by 10 percent due to the pandemic. “We had a strong quarter as we helped people stay connected and businesses grow,” said Zuckerberg in the report. “We will continue to invest aggressively to deliver new and meaningful experiences for years to come, including in newer areas like augmented and virtual reality, commerce and the creator economy.”
Microsoft reported revenues of US$41.7 billion, also beating analysts' estimates of US$41.03 billion, according to Refinitiv. Its Azure public cloud business was a major contributor to this result as it grew by 50 percent, faster than the 46 percent growth analysts had expected, according to CNBC.
Another industry player that also reported an increase in revenues but suffered under pressure from Amazon and Apple music in 1Q21 was Spotify. During that period, the Sweden company reported revenues of US$2.6 billion, which represents an increase of 16 percent against the same period last year. This figure, however, is 1 percent less from its growth in 4Q20. In user metrics, the company added 3 million premium subscribers. Earlier this week, Spotify introduced subscription-based podcasts and Facebook app integration, allowing users to listen to music and podcasts on Mark Zuckerberg’s social network without leaving the app.
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