Apple’s profits double in China
The pandemic saw an increase in sales and profits of many companies across the globe. Apple is one among them. The company observed a phenomenal increase in iPhone sales especially in China. All this has led to doubling the profits of Apple ever since the pandemic. Though Facebook, Apple’s rival tech firm too reported a surge in the revenues and profits. An area where Apple has an edge is its latest software that the company has released recently pertaining to the protection of user data. The increase in sales of phones, apps and other devices throughout the pandemic contributed to the overall increase in the sales.
The pandemic saw the customers upgrading to Apple’s new 5G phones, buying Mac computers and iPads. The countries mandating the professionals to work from home and students to attend classes and learn online resulted in the customers relying on these gadgets. No wonder, people resorted to shopping and seeking entertainment online like never before.
In China, the sales have nearly doubled. With this, the overall revenues for the first three months of this year stood at $89.6bn (£64.2bn). This is way better than what the previous year reported. Percentage wise, the figure is more than 50% up compared to the last year, same time. Talking about profits, last year the figure stood at $11.3bn for the first three months. But this year, the profit rose up to $23.6bn.
Tim Cook, Apple‘s chief executive said, “This quarter reflects both the enduring ways our products have helped our users meet this moment in their own lives, as well as the optimism consumers seem to feel about better days ahead for all of us.”
Out of everything that made it possible for the company to make profits, iPhone remains a core product.
According to Sophie Lund-Yates, an Equity Analyst at Hargreaves Lansdown, the customers showed an inclination towards the big-ticket items. There cannot be a better driver for this other than the shift from working and learning from offices and schools, colleges to staying home and working and attending online classes.
Now that Facebook has reported an excellent growth in the sales and profits, the company might see a stable growth or a moderate growth. This tech giant admitted that the new feature released this week by Apple, wherein the users can prevent apps from collecting user data could be the reason for the users showing an inclination towards Apple.
Well, it is not just Apple and Facebook in the race; Google and Microsoft are in no way behind. These tech giants are performing great too.
A point worth noting is that the even after things are beginning to bounce back to normal, these companies are continuing to make profits. The reason for the same is people permanently changing their behaviour and relying more on online platforms. There cannot be a better example than China to justify this. This country was lockdown-free in recent months yet the sales were up dramatically.
Following all this, it is very much obvious to find Amazon reporting some exceptional figures tomorrow.