Despite China Market, iPhone Sales Still Reach $43.8 Billion

Apple posted fiscal Q4 earnings of $89.5 billion, down one percent year-over-year. CEO Tim Cook put the quarter’s best facts forward: “a September quarter revenue record for iPhone and an all-time revenue record in Services,” and quarterly earnings per diluted share of $1.46, up 13 percent. While net income of just below $23 billion exceeded Wall Street expectations, Q4 capped a fiscal year in which Apple revenue fell 2.8 percent, impacted by a decline in iPhone sales in China. Following the report, shares fell 3 percent in extended trading based on the prospect that the company may not rebound to growth in the important holiday sales season. Continue reading Despite China Market, iPhone Sales Still Reach $43.8 Billion

Demand for AI Chips Drives Nvidia to Revenue Record in Q2

Nvidia announced Q2 revenue of $13.51 billion, a 101 percent year-over-year increase that sets a new company record. The data center division — which accounts for the majority of AI chip sales — also established a new benchmark: $10.32 billion in Q2, a 171 percent leap over the prior fiscal Q2. Nvidia projects that revenue for the current quarter will hit $16 billion — about $3.5 billion above analysts’ expectations. Nvidia chips power OpenAI’s popular ChatGPT and other generative AI and cloud computing apps from companies including Amazon, Google, Meta Platforms, Microsoft and VMWare. Continue reading Demand for AI Chips Drives Nvidia to Revenue Record in Q2

Apple’s Sales Decline Tempered by Record for Services Arm

Apple experienced its third consecutive quarter of declining sales in Q2, with a 1.4 percent slip to revenue of $81.8 billion. But the Cupertino-based company managed to generate record performance in its Services division, up 8.2 percent to $21.21 billion. Sales of the company’s largest device segment, iPhones, underperformed estimates with $39.7 billion in sales, a 2.4 percent dip year-over-year. Overall, however, Apple slightly overperformed Wall Street expectations, which were forecast at $81.64 billion for the quarter ending in June. For Q2, Apple reported 1 billion paid subscriptions — including Apple Music, Apple TV+ and third-party apps. Continue reading Apple’s Sales Decline Tempered by Record for Services Arm

Meta Sees Double-Digit Growth for the First Time Since 2021

Meta Platforms had a successful Q2, reporting double-digit growth for the first time since Q4 2021. The performance was attributed to a rebound in the digital advertising sector. The good news comes with a warning, as the company says it plans to increase spending on virtual reality and artificial intelligence next year. The parent of Facebook and Instagram reported revenue of just under $32 billion for the period ending June 30, an 11 percent gain over 2022. Advertising contributed a whopping $31.5 billion, growing nearly 12 percent year-over-year. Continue reading Meta Sees Double-Digit Growth for the First Time Since 2021

Microsoft Q2 Marks a Quarterly Sales Record of $56.2 Billion

Microsoft Cloud drove record sales and profits for Q2, which saw a year-over-year revenue gain of 8 percent to $56.2 billion for April through June. Net income topped $20 billion, a 20 percent gain that beat analyst expectations and the company’s own estimates. Microsoft Cloud revenue for Q2 was up 21 percent, to $30.3 billion. And the company is beginning to see the results of its investments in artificial intelligence. Q2 is Microsoft’s second record-setting quarter this year, topping the three-month high of $52.9 billion in Q1. The previous profit record was $18.8 billion in Q4 2021. Continue reading Microsoft Q2 Marks a Quarterly Sales Record of $56.2 Billion

Netflix Shutters Cheapest Streaming Plan Without Advertising

Netflix is marshalling resources around its ad-supported Standard plan, pulling the plug on ad-free Basic in an effort to drive more eyeballs to the service’s sponsored tier. The $9.99 per month Basic plan is no longer available “for new or rejoining members” in the U.S. and UK and was dropped in Canada last month. Existing Basic subs can continue the plan until they decide to change tiers or cancel. Standard with Ads has since its November launch accrued more than 5 million subs, according to Netflix, which says 25 percent of new sign-ups have chosen that package. Continue reading Netflix Shutters Cheapest Streaming Plan Without Advertising

Meta Back on Growth Curve Following Three Tough Quarters

After three straight quarters of declining revenue, Meta Platforms posted a 3 percent year-over-year gain in Q1, for a total of $28.6 billion. Earnings fell by 24 percent, to $5.7 billion, due in part to restructuring charges. But the bad news was offset by strong user growth, including 37 million daily active users for Facebook, up 4 percent from Q1 2022. The results beat Wall Street expectations and exceeded Meta’s own guidance. Meta CEO Mark Zuckerberg called it “a good quarter,” adding that “our AI work is driving good results across our apps and business.” Continue reading Meta Back on Growth Curve Following Three Tough Quarters

Zuckerberg Memo Outlines Management Based on Efficiency

Meta Platforms CEO Mark Zuckerberg is getting a lot of love from Wall Street, which saw the company’s stock add $100 billion in value in Q1, largely on the basis of announcing layoffs. Now the 38-year-old is getting attention for a 2,200-word staff memo that has garnered high marks for candor even as he eliminates another 1o,000 jobs. “Last year was a humbling wake-up call,” Zuckerberg wrote. “The world economy changed, competitive pressures grew, and our growth slowed considerably.” Streamlining while working more strategically is the foundation of what Zuckerberg has coined a “year of efficiency.” Continue reading Zuckerberg Memo Outlines Management Based on Efficiency

Spotify Reports Q4 Loss Despite 20 Percent Growth in Users

Spotify reported strong net growth of 33 million new monthly active users but another quarterly loss for Q4 2022, culminating a period during which the company invested heavily in podcasts. The news came amidst layoffs and an announcement that the company’s chief content and advertising officer Dawn Ostroff will depart. Spotify CEO Daniel Ek conceded with regard to the aggressive podcast growth that he “probably got a little carried away and overinvested relative to the uncertainty we saw shaping up in the market.” Given the result — 20 percent global user growth, to 489 million MAUs — Ek concluded “I would do it again.” Continue reading Spotify Reports Q4 Loss Despite 20 Percent Growth in Users

Apple Has Record Quarter but Slowed Growth Worries Some

Bolstered by iPhone 14 sales, Apple reported fiscal Q4 revenue up just over 8 percent, to $90.1 billion, with a 7.8 percent increase to $394 billion for the 12-month sales session that ended September 24. “We set an all-time revenue record for Mac and September quarter records for iPhone and wearables, home, and accessories,” Apple CEO Tim Cook told analysts, noting “services notched a September quarter record as well, with revenue of $19.2 billion and more than 900 million paid subscriptions.” Even so, the company’s earnings produced a Rashomon effect as peak performance triggered pique among some. Continue reading Apple Has Record Quarter but Slowed Growth Worries Some

‘Edit Tweet’ Becoming Available for Twitter Blue Subscribers

Popular social networking service Twitter is adding an edit button for published tweets, the platform’s most-requested feature to date. Users will have to pay for it, at least initially. Edit Tweet, which is being tested internally, will expand to a public test in the coming weeks, rolling out to a select subset of Twitter Blue subscribers who will have 30 minutes from publication to Edit Tweet, doing things like fixing typos and adding missing tags. Tweets that have been edited will carry a label that even those not participating in the test will see. Continue reading ‘Edit Tweet’ Becoming Available for Twitter Blue Subscribers

Record $7.4B in Theme Parks Propels Profit Surge for Disney

It was a successful fiscal third quarter for The Walt Disney Company, which saw revenue jump 26 percent and profits up 54 percent compared to the same period in 2021. The company, celebrating its centenary, had revenue of $21.5 billion and profits of $1.41 billion (77 cents a share) for the three months ending July 2. Theme park revenue was up more than 70 percent, to $7.4 billion, as the company continued to shake COVID-19 contractions. For an added flourish, Disney+ grew a whopping 31 percent worldwide, adding 14.4 million subscribers to top out at 152 million. Continue reading Record $7.4B in Theme Parks Propels Profit Surge for Disney

Profits Down as FTC Sues Meta to Block Purchase of Within

Meta Platforms’ revenue dropped 1 percent in the second quarter, totaling $28.8 billion, just missing Wall Street’s expectation. It was the first year-over-year revenue drop since the company went public 10 years ago. Meta logged $6.69 billion in Q2 profit, down 36 percent over the same period in 2021. Costs increased by 22 percent, largely due to ongoing heavy investment in the metaverse, where the company’s ambitions took a hit Wednesday when the Federal Trade Commission filed a lawsuit to prevent Meta from buying Los Angeles-based virtual reality firm Within. Continue reading Profits Down as FTC Sues Meta to Block Purchase of Within

Google’s Ad Growth Slows While Search Exceeds Projections

Alphabet had a rocky second quarter with revenue of $69.69 billion, up 13 percent from the same period in 2021, though net income was down 14.6 percent to $16 billion. It was Alphabet’s slowest growth rate since Q2 2020, when COVID-19 wreaked havoc on the economy. In a contracting 2022 advertising market, Alphabet posted 12 percent ad growth, totaling $56.3 billion for the quarter ended June 30 versus the same period the previous year. Ad growth was down substantially over the 69 percent increase of Q2 2022, but increased nonetheless where others are declining. Continue reading Google’s Ad Growth Slows While Search Exceeds Projections

Soft PC Sales, Currency Exchange Cloud Microsoft Earnings

Microsoft reported revenue up 14 percent year-over-year to $51.9 billion in its fiscal fourth quarter, which ended June 30. Net income was up 2 percent, to $16.7 billion for the quarter but down almost 19 percent for the year, to $61.3 billion for the 12 month period. Although the results fell short of expectations, Microsoft chairman and CEO Satya Nadella identified the Microsoft Cloud sector as a bright spot, pointing out that it “surpassed $25 billion in quarterly revenue for the first time, up 28 percent and 33 percent in constant currency,” despite the tough macroeconomic environment. Continue reading Soft PC Sales, Currency Exchange Cloud Microsoft Earnings