Apple and Amazon post impressive numbers amid an economic slowdown

Edited By: Abhinav Singh
New Delhi Updated: Jul 29, 2022, 05:05 PM(IST)

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Story highlights

While the US economy contracted for the second successive quarter, the big tech giants had a profitable quarter. Both Amazon and Apple have beaten market estimates

While global economies fear a recession is looming around the corner, the big tech companies are having a glorious day. Reportedly, both Amazon and Apple have posted more than impressive sales numbers against the backdrop of a slowdown.

Amazon's sales figure reached $121 billion in the quarter while its cloud-computing platform Amazon Web Services managed to rake in $5.7 billion in revenue, registering a 33 per cent growth. 

The numbers are particularly impressive for the Jeff Bezos company as online sales shrank by 4 per cent, declining for the second quarter in a row. 

Apple's revenue up by two per cent

Meanwhile, Apple announced that its June quarter revenue stood at a record $83 billion, up two per cent YoY. Apple is expected to pay a dividend of $0.3 per share to its shareholders.  

Apple CEO Tim Cook was quoted as saying after the release of quarterly results, “This quarter’s record results speak of Apple’s constant efforts to innovate, to advance new possibilities, and to enrich the lives of our customers."

Apple had good news coming from India as the company doubled its revenue in the June quarter. Along with iPhone, it was the iPad that was doing surprisingly well in the Asian country. 

US economy falters for a successive quarter

While the two tech companies based in the US are making profits, the country, on the other hand, posted a successive quarter where the economy contracted. 

As reported extensively by WION, USA's Gross Domestic Product (GDP) fell at a 0.9 per cent annual rate after a 1.6 per cent decline in Q1. The report further highlighted that there was a decrease in government spending and residential investment.

Read More: Fueling recession fears, the US economy shrank again in second quarter

In an effort to combat the worst inflation outbreak in four decades, the Federal Reserve hiked its benchmark interest rate by hefty three-quarters of a point on Wednesday.

However, the numbers put up by Apple and Amazon corroborate the reports that consumer spending has not dwindled, despite weak economic signals. 

(With inputs from agencies) 

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