Post by account_disabled on Feb 27, 2024 20:02:08 GMT 10
It's a strange time for big tech. Technology companies are setting records for revenue and profitability, yet they are carrying out intense rounds of layoffs as they try to figure out the next step in computing. AI and mixed reality are very promising, but their development is expensive and far from certain. Meanwhile, iconic companies don't stop their ebbs and flows just because something interesting is on the horizon. The result is change: a mix of high hopes, euphoria and confusion. This week, Alphabet, Amazon, Meta, Microsoft, and Apple all reported earnings, and we got a glimpse of what's real and what's not by looking at their numbers. So for the first time, and probably not the last in this murky time, let's look at some big tech myths and facts in February 2024. This week, Alphabet, Amazon, Meta, Microsoft, and Apple all reported earnings, and we got a glimpse of what's real and what's not by looking at their numbers. gguy in Adobe Stock photos Related Article: Does Big Tech Have Too Much Power? Myth: Vision Pro will be significant for Apple in the near to medium future The way Tim Cook talks about Vision Pro, you'd think he'd seen God there.
On Thursday he called it “a revolutionary device, built on decades of Apple innovation” and said it was years ahead of its competitors. Apple raised $119.58 billion in the most recent quarter, but Vision Pro is expected to peak at $4 billion in revenue by 2027, according to Morgan Stanley. Despite the initial hype, this device won't be anywhere near its mature mass-market version until 2030, and perhaps later. As Reality Labs has been with Meta, Vision Pro Paraguay WhatsApp Number could be a liability for Apple. While Apple would certainly like to see short-term results, the real bet is that Vision Pro will pay off in the future. Related article: Where Apple's Vision Pro leaves Meta SEE EVERYTHING Fact: Apple has a problem with China Apple has bet big on China, since approximately 20% of its iPhone revenue comes from that country. But the adoption of Chinese phones in the region is hurting Apple's business and could be a major impediment to future growth. Apple's sales in Greater China fell almost 13% last quarter, its only region where sales fell. And although the company broke a streak of four consecutive quarters of revenue contraction, its forecasts suggested its revenue will decline again next quarter. Not ideal for the world's second most valuable public company.
Fact: Google's culture is holding you back Google executives were unusually frank when speaking to analysts this week about its culture. In explaining the company's recent job cuts, Google President Ruth Porat made it clear that the intention is to jump-start the company's culture, not specifically improve margins. “We talked a lot this quarter about efficiency and organizational structure,” she said, “and we're focused on removing layers to simplify execution and drive speed.” Speaking without jargon, that means Google's leadership recognizes that the company is moving too slowly and will remove managers it believes have allowed that slowness to take hold. Related article: Layoffs in the technology sector: why technology is being so affected Myth: The digital advertising business is struggling Meta added a $7 billion increase in advertising revenue this past quarter, a growth figure that alone would be a top 10 annual advertising business globally. Alphabet grew its advertising business by $6 billion in the quarter, and that growth alone would be the 11th largest advertising business outside of China. Meanwhile, Amazon grew its advertising business by about 25% last year, reaching $47 billion.
On Thursday he called it “a revolutionary device, built on decades of Apple innovation” and said it was years ahead of its competitors. Apple raised $119.58 billion in the most recent quarter, but Vision Pro is expected to peak at $4 billion in revenue by 2027, according to Morgan Stanley. Despite the initial hype, this device won't be anywhere near its mature mass-market version until 2030, and perhaps later. As Reality Labs has been with Meta, Vision Pro Paraguay WhatsApp Number could be a liability for Apple. While Apple would certainly like to see short-term results, the real bet is that Vision Pro will pay off in the future. Related article: Where Apple's Vision Pro leaves Meta SEE EVERYTHING Fact: Apple has a problem with China Apple has bet big on China, since approximately 20% of its iPhone revenue comes from that country. But the adoption of Chinese phones in the region is hurting Apple's business and could be a major impediment to future growth. Apple's sales in Greater China fell almost 13% last quarter, its only region where sales fell. And although the company broke a streak of four consecutive quarters of revenue contraction, its forecasts suggested its revenue will decline again next quarter. Not ideal for the world's second most valuable public company.
Fact: Google's culture is holding you back Google executives were unusually frank when speaking to analysts this week about its culture. In explaining the company's recent job cuts, Google President Ruth Porat made it clear that the intention is to jump-start the company's culture, not specifically improve margins. “We talked a lot this quarter about efficiency and organizational structure,” she said, “and we're focused on removing layers to simplify execution and drive speed.” Speaking without jargon, that means Google's leadership recognizes that the company is moving too slowly and will remove managers it believes have allowed that slowness to take hold. Related article: Layoffs in the technology sector: why technology is being so affected Myth: The digital advertising business is struggling Meta added a $7 billion increase in advertising revenue this past quarter, a growth figure that alone would be a top 10 annual advertising business globally. Alphabet grew its advertising business by $6 billion in the quarter, and that growth alone would be the 11th largest advertising business outside of China. Meanwhile, Amazon grew its advertising business by about 25% last year, reaching $47 billion.