Tech titans Apple and Google take a tumble

As the year came to a close in 2022, the tech world was buzzing with reports of major players Apple and Google falling short of their revenue and profit expectations for the last quarter. Despite Apple being the largest company in terms of market value, the tech giant’s iPhone sales saw a significant dip, mainly due to production disruptions in China caused by strict Covid-19 policies.

Apple reported revenue of US$117.1bn, down 5.4% from the previous year, and a profit after tax of US$30 billion. Google, on the other hand, saw a decline in advertising sales, causing the company’s profit to drop to US$13.6 billion.

Meanwhile, e-commerce giant Amazon warned of uncertainty in the months ahead, reporting sales of US$149.2 billion in the fourth quarter but a drop in profits from US$14.32 billion in the previous year to near zero. The tech sector is facing several challenges, including a slowing global economy and rising inflation, which has led to companies such as Amazon and Google announcing plans to lay off thousands of employees, blaming over-hiring during the pandemic.

Despite these challenges, the companies remain optimistic about their prospects. Apple CEO Tim Cook assured analysts that the company is “managing for the long term” and investing in innovation and people.

Cook also indicated that Apple’s supply chain headaches were behind them and that production is “back where they want it to be.”

Meanwhile, Amazon CEO Andy Jassy stated that while the economy may be uncertain in the short term, the company remains optimistic about long-term opportunities.

As for social media giant Facebook, the company reported a 1% year-on-year drop in sales for the fourth quarter, but its daily user count hit a new milestone, reaching two billion for the first time.

But while the tech sector is facing some challenges in the current economic climate, Facebook founder and CEO Mark Zuckerberg remains optimistic about the future and is looking toward innovation and growth to drive long-term revenue. He called 2023 the “Year of Efficiency.”