Amazon’s previous trading update showed the cost during the coronavirus would have had a bad influence on their profitability in its second quarter, but results from 30 July revealed that Amazon is still standing strong.
The company’s net income raised to $5.2 billion compared to $2.6 billion one year before, with help from the product sales growth of almost $15 billion to $50 billion, and service sales growth of $11 billion to $38.6 billion.
Jeff Bezos, who is the CEO and founder, has described the period as “another highly unusual quarter”, as the three months up until 30 June coinciding with the height of the COVID19 pandemic in many of the territories in which Amazon operates.
He explained that the third-party sales on Amazon grew faster than the first-party sales during the quarter again.
Bezos noted that money was spent on purchasing personal protective equipment and more cleaning, bonuses, and recruitment: “As expected, we spent over $4 billion on incremental COVID-19-related costs in the quarter,”.
Just like Amazon, Apple’s third-quarter result was described as “outstanding” by Yoram Wurmser who is the principal analyst at eMarketer in the research group, despite stores closing during the coronavirus crisis.
The report shows a rise in revenue of 11% yearly to $59.7 billion and international sales accounted for 60% of the quarter´s revenue.
Wurmser said: “Some of the disruptions may have benefitted Mac and iPad sales, which were very strong and will likely remain strong as people continue to work and study at home in greater numbers,”.
“Even iPhone, however, did well based on strong SE sales. Despite reports of supply problems slowing the introduction of the next iPhone launch, it looks like delays will be limited to a few weeks rather than months as some had suspected.”
The result of the week´s comes against the backdrop of the start of an antitrust hearing in the US, involving Bezos and Apple CEO, Tim Cook, and the leaders at Google and Facebook.
These four technology titans have lawmakers in Congress investigated for more than a year. They analyze if they have abused their power and dominance of the online market.
Source: Essential Retail.