Amazon Warns After Slow Sales Bites
Concerns over Amazon and Apple’s upcoming profitability have increased as the digital titans have warned that the worsening global economy is hurting their sales. After the US stock market closed, Amazon shares fell more than 15% after the company lowered its holiday season sales projections.
After a warning about waning demand for games and advertising, Apple shares also fell. Both mentioned how declining consumer purchasing power results from growing living expenses.
Brian Olsavsky, the chief financial officer of Amazon, invited analysts to a conference call to discuss the results. He acknowledged the current state of the economy while being upbeat about the holiday. The company’s founder, Jeff Bezos, recently advised investors to “batten down the hatches” in light of recent economic warning signs. Even Apple, one of the most reliable tech behemoths, was not immune.
Winter of Unhappiness
Apple said in its update on Thursday that sales increased by 8% to $90.1 billion in the three months ending in September compared to last year. That was a record-breaking quarter, even as iPhone sales fell short of expectations and China’s economy grew slowly.
However, Apple executives warned investors, stating that they detected instability in online gaming and digital advertising and anticipated a steep decline in Mac computer sales. In addition, a strong dollar would hurt business, they continued.
During the epidemic, as more activity went online, Apple and Amazon experienced a surge in business.
Although consumers are again doing more of their shopping in person and changing their purchasing patterns in reaction to increased prices, sales have drastically slowed over the past year…….Read More
Source: Atlanta Wire
After a warning about waning demand for games and advertising, Apple shares also fell. Both mentioned how declining consumer purchasing power results from growing living expenses.
Brian Olsavsky, the chief financial officer of Amazon, invited analysts to a conference call to discuss the results. He acknowledged the current state of the economy while being upbeat about the holiday. The company’s founder, Jeff Bezos, recently advised investors to “batten down the hatches” in light of recent economic warning signs. Even Apple, one of the most reliable tech behemoths, was not immune.
Winter of Unhappiness
Apple said in its update on Thursday that sales increased by 8% to $90.1 billion in the three months ending in September compared to last year. That was a record-breaking quarter, even as iPhone sales fell short of expectations and China’s economy grew slowly.
However, Apple executives warned investors, stating that they detected instability in online gaming and digital advertising and anticipated a steep decline in Mac computer sales. In addition, a strong dollar would hurt business, they continued.
During the epidemic, as more activity went online, Apple and Amazon experienced a surge in business.
Although consumers are again doing more of their shopping in person and changing their purchasing patterns in reaction to increased prices, sales have drastically slowed over the past year…….Read More
Source: Atlanta Wire
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