Alphabet, Apple, Microsoft clock up record-breaking quarter
Apple, Alphabet and Microsoft have all broken their existing records for quarterly revenues in their latest financial results.
Alphabet saw total revenue increase 61.6% to $61.88 billion and quarterly profit was $18.5 billion.
Its performance was driven by advertising revenue and retail brands. Revenue from Google advertising rose nearly 70% during the quarter ended June 30.
Google Cloud saw revenue increase 54% year on year to reach $4.6 billion, and Google Cloud cut its operating losses to $591 million, down from $1.4 billion this time last year.
Sundar Pichai, CEO of Google and Alphabet, said: “In Q2, there was a rising tide of online activity in many parts of the world, and we’re proud that our services helped so many consumers and businesses. Our long-term investments in AI and Google Cloud are helping us drive significant improvements in everyone’s digital experience.”
At Microsoft, where total revenue increased 21% to reach $46.2 billion, Azure was the standout winner.
Server products and cloud services revenue increased 34% – or 29% in constant currency – driven by Azure, which saw its revenue grow 51% (45% in constant currency). Total revenue in Intelligent Cloud was $17.4 billion an increase of 30%.
For the year ending 30 June, Microsoft reported revenue of $168.1 billion an 18% increase, while operating income was $69.9 billion an increase of 32%.
Cloud good, chips bad
As much as cloud has driven the last quarter for some tech giants, semiconductor chips took the shine off for others.
Apple confirmed in its earnings call that the global shortage in semiconductor chips has already hit its Macs and iPads and that it will extend to iPhone production. Shares dropped 1.7% after the call.
However, elsewhere, Apple posted a June quarter record revenue of $81.4 billion, up 36% year over year, while service revenue also reached a new all-time high.
“This quarter, our teams built on a period of unmatched innovation by sharing powerful new products with our users, at a time when using technology to connect people everywhere has never been more important,” said Tim Cook, Apple’s CEO. “We’re continuing to press forward in our work to infuse everything we make with the values that define us — by inspiring a new generation of developers to learn to code, moving closer to our 2030 environment goal, and engaging in the urgent work of building a more equitable future.”