Combined Bag as Tech Giants Apple, Amazon and Intel Launch Quarterly Outcomes

Apple posts document income, loses floor in China

Apple reported document income of US$94.9 billion for its fourth fiscal quarter of 2024, marking a 6 % year-on-year improve. Nonetheless, the achieve got here alongside a pointy 36 % drop in web revenue to US$14.74 billion, attributed largely to a one-time US$10.2 billion cost linked to a European tax determination.

The iPhone phase stays Apple’s largest income contributor, with gross sales rising 6 % to US$46.22 billion, bolstered by the launch of the iPhone 16 sequence. Apple’s Companies division additionally achieved a quarterly income excessive of US$24.97 billion, pushed by development within the App Retailer, Apple Music and Apple TV+ subscriptions.

A key space of concern for Apple, nonetheless, is its comparatively stagnant income in Higher China.

Quoting information from IDC, Reuters states that iPhone gross sales in China dipped 0.3 % within the third quarter as rival Huawei posted a 42 % surge in smartphone gross sales. Apple’s market share in China has slipped to fifteen.6 %, permitting it to be overtaken by Huawei, which gained 4.2 % year-on-year.

The aggressive atmosphere in China poses a important threat for Apple, which has been proactive in diversifying its provide chain by rising iPhone manufacturing in India and lowering lead instances globally.

Cloud and advert segments dominate in Amazon’s outcomes

Amazon introduced Q3 web gross sales of US$158.9 billion, an 11 % improve from final yr, with web revenue rising to US$15.3 billion. Gross sales have been pushed largely by Amazon Internet Companies (AWS), which continues to draw companies in search of AI-powered cloud options. It introduced in US$27.5 billion, a year-on-year rise of 18 %.

The aggressive panorama for AWS, nonetheless, has by no means been more durable, as each Microsoft and Alphabet’s (NASDAQ:GOOGL) Google intensify their concentrate on AI investments and cloud infrastructure.

To match the competitors, the corporate plans to scale AWS’ AI capabilities by constructing new information facilities and computing capability to fulfill rising demand from enterprise prospects.

Amazon’s promoting income additionally posted a 19 % improve year-on-year, signifying the division’s rising function throughout the firm’s broader enterprise. As well as, the agency’s worldwide phase posted an working revenue for the primary time in over a yr, pointing to a restoration in areas exterior the US.

Intel beats estimates as restructuring efforts proceed

Intel launched its Q3 outcomes because it continues a restructuring plan geared at bettering efficiency.

Income for Intel’s information heart and AI phase rose 9 % to US$3.3 billion, outpacing analysts’ estimates, however the firm posted a US$16.6 billion web loss because of restructuring and impairment costs.

Intel has been going through mounting stress from NVIDIA (NASAQ:NVDA) and AMD (NASDAQ:AMD), which dominate the AI chip market in market share. Whereas Intel’s conventional PC and server chip companies have seen renewed demand, the corporate has largely missed out on the AI funding growth, which is dominated by NVIDIA’s GPUs.

Intel’s outlook for This fall tasks income of between US$13.3 billion and US$14.3 billion, and the corporate has set formidable targets to extend its capital expenditures for AI {hardware} in 2025.

Nonetheless, Intel’s gross margin for the quarter fell wanting expectations at 18 %, indicating that the corporate has vital floor to cowl in price administration and revenue restoration.

Regardless of these challenges, Intel’s longstanding relationships with PC producers and its ongoing funding in foundry companies supply the potential to increase its income streams.