Apple, Amazon celebrate sales, in spite of rising product prices

Robert Besser
03 Aug 2022, 04:53 GMT+10

In a sign that will reassure investors that they can weather a global economic slowdown, Amazon and Apple posted better than expected sales this week
Despite rising prices, both companies said they were making progress in controlling operating costs, which sent shares soaring
The quarterly updates from Apple and Amazon are closely watched as indicators of how customers are reacting to the economic climate

CUPERTINO, California: In a sign that will reassure investors that they can weather a global economic slowdown, Amazon and Apple posted better than expected sales this week.

Despite rising prices, both companies said they were making progress in controlling operating costs, which sent shares soaring.

The quarterly updates from Apple and Amazon are closely watched as indicators of how customers are reacting to the economic climate.

Figures released this week showed the U.S. economy shrank for the second consecutive quarter, a sign that many countries would consider being in an economic recession except in the U.S., which uses additional data.

"Our June quarter results continued to demonstrate our ability to manage our business effectively, despite the challenging operating environment," said Apple's chief operating officer Luca Maestri, adding that the company expected growth to pick up again in the months ahead.

However, both companies have seen sales growth slow down from last year, and profits fall.

Amidst COVID-19 lockdowns in China, Apple's profits fell almost 11 percent from one year ago to $19.4 billion, while Amazon lost $2 billion due to changes to the value of its investment in electric carmaker Rivian Automotive.

Amazon was witnessing a "mixed bag" of economic signals, Apple head Tim Cook said, adding, "When you think about the number of challenges in the quarter, we feel really good about the growth that we put up."

Between April and June, overall sales of Apple products and services increased 2 percent year-on-year to $83 billion, with iPhone sales continuing to drive the company's gains, while supply issues have held back sales of its other products.

Meanwhile, Amazon said, despite its e-commerce business struggling in recent months, its revenues were up 7 percent to $121.2 billion, shielded by the strength of its cloud computing division, AWS, which saw sales surge by 33 percent.

Meanwhile Amazon chief executive Andy Jassy said, "Despite continued inflationary pressures in fuel, energy, and transportation costs, we're making progress on the more controllable costs we referenced last quarter, particularly improving the productivity of our fulfillment network."

Laura Hoy, equity analyst from Hargreaves Lansdown, noted, "Big tech has been a mixed bag this earnings season, but Amazon proved that the strong can survive even the toughest environments," as quoted by the BBC.

Watch latest videos

News RELEASES

Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Manila Metro.

More Information

27 ℃

Fair in Manila/Aquino

Asia Pacific

Section

Japan: PM's son resigns for holding party at official residence

TOKYO, Japan: After coming under public criticism for using Japanese Prime Minister Fumio Kishida's residence for a private party, his ...

Washington coordinates 14-country supply chain agreement

WASHINGTON D.C.: The U.S. Commerce Department has said that trade ministers from 14 countries have taken part in the US-led ...

China, South Korea seek to expand cooperation in chip sector

DETROIT, Michigan: Amid broader global concerns over semiconductor chip supplies, sanctions and national security, Chinese commerce minister Wang Wentao said ...

Typhoon Mawar strikes Guam, much of island without power, water

GUAM: After Typhoon Mawar brought strong winds and torrential rains, large areas of the US Western Pacific territory of Guam ...

US-bound Chinese flights avoiding Russia's airspace Reuters

Washington is reportedly seeking to protect domestic carriers which are banned from overflying the country.Chinese airlines are avoiding Russian airspace ...

New Tiananmen Museum Opens in New York Ahead of June 4 Anniversary

The hope for a 'free China' lives on in a new Manhattan museum dedicated to China's 1989 suppression of pro-democracy ...

International

Section