Facebook and Apple: strong results but with future worries
Facebook and Apple both reported quarter results above expectations but both of them with concerns for future worries. Facebook stressed Apple’s new privacy-related software changes will make it more difficult to target advertising. Apple referred good results to interest in 5G iPhone upgrades but warned that the global chip shortage could cut iPads and Mac sales by several billion dollars.
Facebook has benefited from increase in digital ad spending for online shopping and higher ad prices. The company said it will focus on building e-commerce features to broaden revenue streams beyond advertising.
CEO Mark Zuckerberg said the company will focus on building augmented and virtual reality, e-commerce features and helping content creators earn money on Facebook’s platforms.
Total revenue, mostly ad sales, was USD 26.17 billion in the first quarter. First quarter net income was USD 9.5 billion compared with USD 4.9 billion a year earlier.
Monthly active users on Facebook was up 10% to 2.85 billion.
Apple reported for the fiscal second quarter ended March 27 sales and profits were USD 89.6 billion and USD 1.40 per share. iPhones were the biggest driver of growth.
Apple said iPhone sales were USD 47.9 billion and sales of Macs and iPads were USD 9.1 billion and USD 7.8 billion.
The company has 660 million paying subscribers on its platform, up from the 620 million in the fiscal first quarter.
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