Amazon and Apple Sales Up Despite Increase In Prices. Why?
On Thursday, Amazon reported its quarterly loss but the revenue is higher than its expectations as it sent its stock higher. After all the sales Amazon and Apple are Up Despite and there are many reports also saying that it making more progress in controlling. It’s some excess costs due to massive expansion while the pandemic.
Now amazon has lost USD 2.03 billion or 20 cents every share in the three months ended on June 30. Which is driven by a USD 3.9 billion write down with the value of its investment in electric vehicle startup. But there is a big question how do Apple and amazon still generate huge profits with high prices?
Both companies said that they’re making more progress in controlling the costs of their products but the prices are continuously rising. Not prices of products but it is also about the updates of pricing high of stocks which is scary. The time to time updates done in Apple and Amazon is seen as indicators showing how customers reach out to the economic climate.
Apple’s chief officer Luca Maestri said that the June quarter results of Apple’s results continued for demonstrating its ability for managing its business more effectively. He also said this by adding the expected growth of the company for picking up the growth in upcoming months.
When we talk about the sales growth of both companies then both sharply get slow down from last year. The profit of Apple also get down by 11% a year ago to $19.4bn when it was wrestled by covid-19 in china. On the other hand, Amazon has lost $2bn by some changes in the value of its investment in electric vehicles.
Other Reasons
Overall the sales of Apple products and services are increasing 2%from April to June by $8.3bn. The continuous sales of the iPhone are the power for the gain of the company. The huge supply of I phones are constraints that held reverse sales of other products of apple.
Services by apple that most people are using such as Apple pay and streaming music, and television services which also grown by 12% in past months.
On the other hand, Amazon’s revenue will increase up to 7% to $121.2bn. The Fact is, it doesn’t include the eCommerce business in the past months. Online sales on amazon shrank by 4%, the second quarter in a row of the decline in growth.
The company is still shielded by strength by its cloud computing division named AWS which generates sales by 33%. Amazon also spooked many investors for its online sales softened. As it also spends too much on hiring or adding warehouses for products which also increases with pandemic-era shopping.
The chief executive of Amazon, Andy Jassy said that besides the inflationary pressure of energy, fuel, or shipping costs, amazon company still makes progress with more controllable costs. As they also refer to the last quarter which improves the productivity of amazon’s fulfillment network.
Additionally, Amazon also said that its eCommerce sales look especially weak. This is because of their prime day when any discounts typically drive attract people for buying products. Reports from June and July show high eCommerce sales through the prime day.
Related Links – Tesla Stock Split
