Apple and Amazon report strong results during lockdown

Apple and Amazon report strong results during lockdown

Apple and Amazon have both reported strong results for the period covering the Covid-19 lockdown.

During Apple’s fiscal Q3 covering the three months to June 27, the tech giant increased revenue by 11% year-on-year to $59.7 billion (£45.44bn).

International sales accounted for 60% of the quarter’s revenue.

Apple reported a strong performance in digital services with all-time revenue records in the App Store, Apple Music, video and cloud services.

“Apple’s record June quarter was driven by double-digit growth in both Products and Services and growth in each of our geographic segments,” said Tim Cook, Apple’s CEO. “In uncertain times, this performance is a testament to the important role our products play in our customers’ lives and to Apple’s relentless innovation. This is a challenging moment for our communities, and, from Apple’s new $100 million Racial Equity and Justice Initiative to a new commitment to be carbon neutral by 2030, we’re living the principle that what we make and do should create opportunity and leave the world better than we found it.”

Amazon reported a net sales increase of 40% to $88.9 billion (£67.66bn) in its fiscal Q2, compared to a year ago. International sales increased 38%. 

Subscription services, including Prime and Amazon Music, increased by 29% year-on-year to $6.02bn (£4.58bn).

“What’s going on internationally is we have some very healthy established countries that we’ve been in a long time,” said CFO Brian Olsavsky. “And we have probably accelerated their adoption of Prime benefits. We’ve pushed video and devices and music and other things to those countries probably earlier in the life cycle than you would have seen in the US.

“So there’s a bit of a forward investment on Prime benefits in many of those countries. But what you also see are investments in new countries. Obviously, India is the biggest one, but also, to a lesser extent, the Middle East, Brazil, Turkey and Australia are recent addition. So there’s always an element of expansion going on there.”

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