Running through the earnings reports this week. For tech, the news is big and good. Services highlights.
Apple focuses heavily on services, with an all time high of revenue in the June quarter. The company also warned the chip shortage could be a significant problem going forward. Finally, the company also indicated that the coronavirus will continue to be a challenge for the company and the market ongoing, stating “the road to recovery will be a winding one.”
Microsoft slowed slightly growth in Azure, from 46% last quarter to 45% this., although revenues grew. The company also reported slowdown due to the chip shortages, impacting Windows OEM revenue and Surface revenues. Cloud and Office services are signs of strength for the company, and the company projects further growth in Azure to come.
Google narrowed its losses on Google Cloud, amid growth of its three lines of ad businesses. Samsung has announced its best operating profit in nearly three years, and indicated that market conditions have improved in the memory market. ServiceNow had a better than expected second quarter, and highlighted strong interest in “retooling workflows” in companies as driver.
Why do we care?
Besides a quip that tech companies are making ALL the money, we can read the tea leaves here.
There is concern about the state of the corona virus and the chip shortage.
Cloud is a massive driver for growth, as is tool kits focused on improving work.
And technology is still very much in demand.